The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1857-10-22

rran the 81 Louis Republican
The Illinois Central Railroad has failed
and made Nh assignment This is the great
est among the great failures of the passing
day.
/ The Illinois Central is the longest railroad
in the United States. IL is ,0i miles long
At the last accounts il had cost over $23,-
100000. Its gross receipts at the last year
ly return were S2is6.000 its net receipts
were 81 ,03l 900 On the 10Th Of Septem-
Der lis stock stood at -, and rs late Us 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 3,Si0 acres to eve
~ mile So that the whole grant was over
100, 000 acres of land These lands were
appropriated by the company in the manner
following 100000 of acrs were mort,
gagged rs security for money 10 he RAISED
for the construction of the road.
The money expected To be- raised in this
way. was 81 100000. The bonds bore
per cent. interest, payable on the LIST of oct
and April in New York 250,000 acres
were to he held subject 10 sale, 20 as to form
u fund for the payment of interest, until the
receipts OF the road should pay interest The
balance some 100000 acres wcr Ia hc
sold liom time 20 time 10 meet such DE-.
mands IA the cNigrncies Of the Company
may demand.
The minimum value of the 2O00,U,o acres,
(mortgagcd for construction was SET down
AT over $4,000 900.
The Company also created stock to the
amount of S2,O00,0O0.
The lands and the road were conveyed in
tris, To Morris ketchum OF New \ ork, and
10 i0i!n moufr and .Safn0i H. Lockwood
Of Illinois. The trust thus created VAS To
secure the construction 81 the road and those
who loaned il money On the strength Of It's
lands and road.
The bonds called construction bonds. to
the amount of 81 ,,OO0,00o, have been is
sued BESIDES there ARE $4,000 900 of
per cent. bonds secured by lands, other than
thosr set apart 10 secure the construction
bonds, have been issued. These $4,000 600
are called Ere, land bonds.
A the minimum valuation pm, on the
- 0OO 900 acres which were mortpagcd 10
secure the construction bonds. the whole
landed property may be considered worth
SO 900 .00o.
The last sale OF the bonds was g.
80 saugunc were the pfoprictors ui this
road that the proceeds al the bonds, and
the lands sod. would put them amply in
funds. that they made il "A condition Of the
construction bonds tina, the company might
at any time purchase th,>' bonds or any Of
them hy paying, ia addition to the regular,
interest, the principal with fIc0tg per cent.
added In fact, few supposed that such
road rs this endowed ns il was could fail
OF being excellent property.
IL had - 900 0oo Of capital subscribed.
II had such proceeds III money nv near 100
900 acres 81 land wonld ylcll 10 pay intc-
rest, ns well as for construction And il
hal the proceeds Of the 81, 0o0,s0o con
strnctiou bonds.
The cost il sot down by the Kddyud
J0n,,,ai at. as We have stated above, II little
over S2300O.00O The construction aud
free land bonds amount Ia S20,OO00U0. If
they have been all sold The interest nj
per cent on these bonds il : 400 900 The
So ~o"aii.- ~ the road a, the last yearly
r.port, were gwen ~ - UJi ,uuu, aGtu ~
gross at S2,i.C,OhU. Of the gross receipts
. I"i A'bl ilt'' NV 'hh'pA7 ''"F
treasury ~ the bonus agreed on for the
land grant,
Five per cent. on the gross receipts last
wear were over Sl23,0Oo. And. il the sum
above given ~ NJ, receipts IL What ~ lcit
after dcduc'ing mcrly running cxpenscs
this Sl23 400 must be- deducted from thee
receipts, thus leaving the sum applicable 10
the payment of interest from the receipts a,
500 200, which would fdl -hor, OF the IN
terst SUPPOSED TO I've due over half a million
# dollars
The lands sold ly the company amount
10 about 3Uo0D0 acres at Sli an acre
Should all the land granted them -cll al the
same rate the aggregate would bc between
thirty and forty million Of dollar.
The lands and road Hill non. in the r.
.uIar course, ~ INTO ,h' hand Of the bond
Holder nr u. aoli ,o- 'hnir hen"ii' III"
suggestion tina, the road will be no longer
oI rated. cannot, We suppose, 10" GROUNDED
in any knnwsdge Of the intentions 81 'ho.'
who control II.