Daily Democrat and news. [volume] (Davenport, Iowa) 1859-1864, 1860-02-14

contract, if they saw proper, within a
given Time, to Fon Desmoinss and Cs-
kaloosa. This psoposition was submit
tel to the board to be the only alterna-
tive-sithcr 70 accept this proposition
or abandon the work for the time be-
ing, or perhaps until what work on the
line already accomplished would be . to-
tai loss. The directory were very anx-
ious that the work should continue in
progress, and seeing no other aitsrna-
tive, concluded to accept the propos'-
ton. Consequently N. Is. Judd, q
member of the board and Farnam's man
OF all work, at least so far rs the Missis-
sippi aud Missouri Railroad IS con-
cerned, presented a contract, which was
entered into by the directory and the
aforesaid contractors, by which they
agreed t, take the work already done,
material, &C., and complete the roads at
cost to the company OF thirty one
thousand dollars per mile (without ball
lasting) After making several other i'm
portant and costly reservations under
the above arrangement the road was
completed and is now in running opera
ton as far AS Iowa City and Washing
ton, and passed into the hands of the
stockholders at a cost to them, as near
a, can ascertain, of over forty-five
thousand dollars per mile-right Of way,
agencies, engineering, &c, included.
The session Of Congress Of 1866
passed law granting to the State of To-
wa a certain amount of land CONNECTED
with other grants) for the purpose of
aiding in the construction Of Railroad
from Davenport, vio Iowa City and Fort
Desmones, to Council Bluffs, consisting
OF every alternate section of land, desig-
mated by odd numbers, for six sections
in width on each side of said road, with
the privilege of extending to fifteen
miles from the line Of said road, provid-
ing that the United States may have sold
any sections or any part thereof, granted
as aforesaid. At All extraordinary session
of the Legislature Of the State Of Iowa,
called for the special purpose Of dis
posing of those lands donated by Con-
gress to the State, which assembled in
Iowa City, in July, 1856, the above
lands with certain restrictions were do
mated to the Mississippi and Missouri
Railroad Company, = body corporate,
created and existing under the laws Of
the State of Iowa, upon the express con-
dition that in case said Company shall
fail to have completed and equipped sew
miles Of its road within three
years from the first day of December,
ls5G, thirty miles in addition in each
year thereafter, for five years, and the
remainder Of their whole line Of road
in one year thereafter, or on the first of
December, a. d. 1865. then In that case
it shall be competent for the State Of To-
wa to resume all rights to the lands
hereby granted and remaining undis-
posed of by the Company SO failing to
have the length of road in manner and
time as aforesaid. Said Company is al
50 required to make regular annual re-
port of its proceedings, at the usual
time and place Of elccting their officers,
&C., exhibiting detailed statement, as
far as practicable, of the amount of their
liabilities, &c.
BY supplemental act, approved Jan
uary 2sth, 1857, the Company is allowed
to make such disposition Of lands grant
ed by the act to which this is a supple
ment, by mortgage or deeds of trust, as
may be deem ed proper for the purpose
of securing any amount of construction
bonds necessary for the completion of
tho road, not to interfere with any right
in said lands, otherwise than as subject
to all the conditions imposed by the
former grant, DC.
With view to the speedy compile
ton of the main line from Iowa City
to Council Bluffs, the following grand
financial plan adopted in May, 1857, to
wit A mortgage of the entire road
between those points, with its equip
ments and appurteuances, and OF the
land. granted to them by Congress, to
Thos. K. Walker, of the City of New
York, and Curtis 3. Raymond, of the
City Of Boston, (both represented by
Farnam and his associates as being gen.
tlemen Of immense wealth and of large
influence in the City of London, where
those bonds were expected to be sold,)
As trustees for the bondholders, for the
SUN of seven millions OF dollars, and is
sued construction bonds for that amount
at seven per cent. per anpum, the in
terest payable semi-annualy the princi-
pal reimburaablc in 1877. Each bond
Of one thousand dollars, accompanied
with five optional rights, or the right t.
subscribe for five shares of the capital
stock of the Company, Of one hundred
dolls per share,on paying one dollar per
share when the right is exercised, and
subject to no further call until the road
is completed, unless it be to the amount
lof five dollars per share IN 1861, if nee
essary to pay interest on the bonds
The proceeds of the lands when sold to
be applied to the payment of the con
strnction bonds, and when thus applied
are to be credited OF the optional stock,
affording TO the bondholdcrs not only a
carfa Of Ia