The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1857-10-16
From tbs s., Louis Republican.
GREAT RAILROAD FAILURE.

GREAT RAlLhuAD rAiLChh'
The Illinois Central railroad has failed, and made an
assignment This is the greatest among the great fail
ures Of the passing day
The Illinois Central is the longest railroad in the Uni
led stats Ii is T04 miles long At the last accounts il
had cost over SIS 600 600 Its gross receipts at the last
yearly return were 81 10000 its net receipts were
Al osl 600 On the 18th OF September its stock stood
AT % and as late as last Saturday stood at II.
As every one knows this road richly endowed by
the State with lands granted by Congress- The grant
was $40 acres every mile SO that the whole grant
WAS over 100 600 acres Of land These lands APP
propriated by the company in manner following 2OoO
900 of morgased security for money TO be
raised for the construction of the road The money e1-
pected to be raised in this way sl7 ,0OO The
bonds bore per cent interest payable the LIST Of DC
toher and April in New York 100000 acres were to be
held subject to sale so as to form fund for the payment
Of interest until the receipts of the road should pay in
terest The balance 400, 900 acres-were to be
sold from time to time to meet such demands as the
axigencies of the company may demand "
The minimum value of the 2 900 900 (mortgaged
for construction was down at SIS 900 600
The company also created stock to the amount of ST.
900, 600.
The lands and the road conveyed in trust to Morris
Ketchum of New York, and to John Moore and Samuel
ID lockwood of Illinois The trust thus created was to
secure the construction of the road and those who loan
ed il money on the strength OF its lands and road.
The bonds, called construction bonds, to the amount
Of siT 200 Ooo have been issued. Besides there are
$1,000 900 Of percent bonds secured by lands other
than those set apart to secure the construction bonds
have been issued These So 900 600 called freeand
bonds.
At the minimum valuation put on the 1000 600
acres which morgaged to secure the construction
bonds the whole landed property may be considered
worth SIS, 600 900.
The last sale of the bonds was 65. ...
80 sanguine the projectors Of this road that the
proceeds Of the bonds and the lands sold would put them
amply in funds that they made it condition of the con-
tructon bonds that the company might at any time pr-
chase these bonds any of Them by paying in addition
10 the regular interest the principal with py per cent
added In fact few supposed that such road as this,
endowed as it was could fail of being excellent property
1t had az 600 900 of capital subscribed It had such
n,oeeds in money as near 700 900 of land would
Weld 10 pay interest we'll for construction And it
had the proceeds the SIT 900 construction bonds
The cost is set down by the Railroad Journal at
have stated above little $23 900 The con-
srucon and fee-land bonds amount to $40 600 900, if
they have been oil sold The interest at per cent
these bonds 81 900 The net receipts of the road
at the last yearly report were given at 81 o3l OO0 and
the gross at 50 476 O0O OF the gross receipts per
cent are payable into the Illinois State treasury the
bonus agreed for the land grant Five per cent on
the gross receipts last year sl23,OOo And if
the sum above given net receipts is what is left after
deducng merely running expenses this SIPS, 600 must
lie deducted from these receipts thus leaving the ap
pcabe to the payment of interest from the receipts at
1907 200 which would fall short of the interest supposed
to be due over half million Of dollars
The lands sold by the company amount to about
800 900 acres at near sl4 Should all the land
fbaa
be between thirty and forty millions of dollars,
The lands and roads will in the regular course
60 into the hands of the bondholde be sold for their
benefit The suggestion that the road will be longer
operated cannot suppose, be grounded in any knowl
edge of the intentions of those who control it.