Weekly national intelligencer., 1857-10-17
GREAT RA1Iaolp FAILURE.
FROM TIN ST. Louls} }aspus1rcAs.

khoA THA ST. A0Uk8{ {11fUbLlcAH ~
The Illinois Central railloid has failed, and made
an assignment. This is the greatest among the
great failures Of the passing d&y. 80
The Illinois Central is the longest railroad in the Uni
ted States 1t is 704 miles ose At the last accounts
last yearly return were its nett receipts
ST. 03l 900 On the 1sfof September its stock stood
at "a, and as late as last Saturday stood at IL.
As every one knows this road Was richly endowed by
the State with lands granted by Congress- The grant
was $40 acres every mile So that the whole grant
was over 2,7OO,OO0 acres Of land These lands were
appropriated by the company in manner following:
20O 900 of mortsaged security for money
to be raised for the construction Of the road The
expected to be raised in this way SIT 000 The
bonds bore per cent interest, payable the 1s Of
October and April in New York; 250 600 acres were to
be held subject to sale SO form fund for the paw
ment of interest until the receipts of the road should pay
interest The balance-some 400 900 acres-were to be
sold from time to time to meet such demands the
exigencies of the company may demand" IL
The minimum value of the ZOO 900 (mortgaged
for constructon set down at over 000 The
company also created stock to the amount of 0O0
The lands and the road we're conveyed in trust to
Morris Ketchum, of New York, and to John Moore and
Samuel D. Lockwood of Illinois, The trust thus created
was to the construction OF the road and those
who loaned money the sire 9Th of its lands and
road
The bonds called construction oonds to the amount
of $17 OOO have been issued Besides So 600 600
of per cent bonds, secured by lends other than those
set apart to the construction bonds have been
issued. These So 200, 600 are calei freeland bonds
At the minimum valuation put o. the 1000 600 acres
which mortgaged to secure tie construction bonds
the whole landed property may be considered worth
$25, 900 900. The last sale Of the binds 65.
So sangune the propretor of this road that the
proceeds of the bonds and the pds sold would put them
amply in funds. that they -n asssition of the
strucon bonds that the company might at any time pur
chase these bonds any of them by paying in addition
to the regular interest, the principal with tcenty per
cent added In fact few supposed that such road as
this endowed as it could fail of being excellent pro-
perty 1t had S. 0O0 600 of capital subscribed 1t had
such proceeds in money as 100000 of land
would yield to pay interest we'll for construction
And it had the proceeds of the 900 construction
bonds.
The cost is set down by the Railroad Journal at as we
have stated above, little over $23, 900 000 The
strucon and freeland bonds amount to $40 000 if
they have all been sold The interest at per cent on
these bonds is ST. 000 The nett receipts of the road
at the last yearly report were given at 03 000 and
the gross at s. 476 000 Of the gross receipts per
cent payable into the Illinois State treasury as the
bonus agreed for the land grant Five per cent. on
the gross receipts last year $l23OOO Andi if
the sum above given nett receipts is what is left after
deducng merely running expenses this $123 600 must
be deducted from these receipts thus leaving the ap
picable to the payment of interest from the receipts
1907 200 which would fall short of the interest supposed
to be due half million ofdollars
The lands sold by the company amount to about
900 acres, at $14 acre. Should all the land
granted them sell at the same rate the aggregate would
be between thirty and forty millions of dollars.
The lands and roads will now, in the regular course
go into the hands of the bondhoders be sold for their
benefit The suggestion that the road will be no longer
operated cannot we suppose be grounded in any know
ledge OF the intentions of those who control it.