Daily Davenport Democrat. [volume] (Davenport, Iowa) 1864-1874, 1868-06-02
The Railroad War F.!
THE ROCK ISLAND RAILROAD CON.
TR0vERSY.
A Plain Statement Of Facts.

From the New York World, Nay 30, lass.
The pretended stockholders In the Chca-
50, Rock Island and Pacific Railroad Com.
pany, who have been seeking for some time
10 get control Of its affairs for the purpose
Of putting stop to the building Of the road
to Council Biuas, have published statements
calculated to mislead the public.
The real issue is whether the road shall
be built to Council Bluffs to connect with
the Union Pacific Railroad, or not The
President and Directors Of the Rock Island
Company are in favor of building the road,
and have raised the money TO do 50, In &C.
cordancs with . resolution offered by Mr..
David Crawford, Jr., at = meeting Of the
Executive Committee held at the office Of
the Company, at New York. on September
l3th, 1867. This resolution was adopted
BY the unanimous vote Of John +. Tracy,
c. W. Dursnt, David Dows, David Craw-
ford, Jr., and Thomas I. Sturgss, and
"Ilsssire1. That tho Capital Stock Of this
Company bs increased four millions nine
hundred thousand dollars, 90 ~ to make
the Capital Stock o. count stand at fourteen
millions OF dollars"
"Resslssd, That John +. Tracy and David
Dows bs appointed . Committee to make
sales Of such stock, 80 authorized, at their
discretion, and that the officers of this COM
pany DO directed 70 issue certificates Of
stock. in such amounts, and TO such person
or persons ~ the said Committee may d..
rect, not exceeding. In all the sum Of four
millions aine hundred thousand dollars"
In accordance with these resolutions, the
Committee sold ~, 900 shares between Oct
ober 18th and December 20th, 1867, which
realized the sum Of s4,795 ,53e.02. The
estimated esst Of building the read AID
equipments was 81. .o6s, 1928. The amount
Of money realized from tho sale Of this
stock averaged . fraction above 97I, and
was much greater than expected.
The transaction was in every respect
highly advantageous TO stockholders. The
msney was obtained on better terms than
any on record for any railroad company mr..
der similar circumstances. This WAS done
81 . time whsn the great Pacific Railroad
companies were raising money to build their
roads BY the sale Of their first mortgage
bonds at 90, and the committee Of the
Rock Island Company raised actually near
" e5, 900 900 y build their extension BY
the sale Of their stock at over 975, thereby
realizing interest on tho sum obtained in-
stead Of paving it, Us in the case Of On is
sue Of bonds.
So far ~ raising the money 10 concerned,
Msssrs. Tracy and Dows have certainly
fulfilled their duty to the Company.
Immediately after the money vas real
lied, tho President, Mr. John T. Tracy, and
Directors proceeded. AZ was their duty, to
make contracts for building tho road to
l. la. "a II
luton Of September 10. 1867 As soon rs
this become known. certain parties, a. sl-
legged, colluiel with,the controlling mana.
ger Of the Chicago d Northwestern Com
pany 70 stop the building Of the road, ard
to make it's terminus at Dss Moines. instead
of Council Buffs, for the purpose Of giving
the monopoly to the Chicago and North
western Company OF the through route Of
connection with tho Union Pacific Ril-
road and New York. Being warned in time
Of the projects Of tho Chicago and North
western Clique to inquire tho interests Of
the Rock Island Company by ruinous de
lays from vexAtious law suits, the Prssi-
dent and managers moved to Iowa, in or
der to proceed without let and hinderence
in building tho road to Council Bluffs.
In order 70 show that the sole aim OF
these parties is to stop the building Of the
road AMI to sacrifice the interests Of tho
Rock Island Company to those Of the Chi
cage and Northwestern, We append the fol
lowing copy Of one out efsx similar suits
instituted at tho insti cation Of the North
western clique:
Supreme Court -Ruius Hatch against the
President and Directors OF the Chicago,
Rock Island and Pacific Railroad Com
pany. Injunction dated Jan. 9, 1863, by
JUICE Barnard
that the defendants in this action be
cnjoined and restrained from making or en-
terIng into any contract. agreement, or
obligation on the par, Of the said Chicago,
Rock Island, and Pacific Railroad Com.
pany, to extend its road to, or to build or
aid in building any road from or b.yond
Des Molnes, Iowa, or to make the connec-
ton between Des Moines, Iowa, and the
Western limit Of Iowa. and from creating
any liability on the part of The said compa-
ny In respect thereto, and from approppia-
ting. using, or disposing Of any Of the mon
sys or property OF said company for such
purpose, or in executing any contract, agree
mont, or obligation to build said extended
read, or from making, permitting, or caus-
ing to bs issued or created, any other addi-
tonal shares of ttlSltock Of said company,
and from increasing the amount Of its cap
ital stock already issued. and frcm paying
out. parting with, or in any way disposing
OF or using Except to deposit and keep
safely the proceeds OF said forty-nins
thousand additional shares on the complaint
mentioned, or any part thsvse, except to
redeem the forty nine thousand shares, and
TO extinguish the same, until the further or
der Of this Court"
This is . sample Of two suits commenced
BY the brokers-Rufus Hatch, two BY
Fisks, Belden L Co, oas BY Belden, and
one By Fanshaws, Of Connecticut.
The communications published By pre-
tended stockholders are simply smanations
Of the Chicago AID Nosthwerstern CLIQUE,
in order to stop the building Of the rival
Rock Island road 70 connect with the Unien
Pacific, which, when completed, will BE-
the shortest and most direct trunk line
from New York to San Francisco.
The company swns about $50, 900 acres
Of land, which will Be forfeited to the State
Of lewa il the road 10 not built to Council
Bluffs. Whom the road 10 completed, these
lasds will realize $40 to $50 per acre, OF
IvOW vo,VVV,VVu 70 t0vIS,oVV,UuV-eQuG 70
dividend Of about 60 10 30 per cent on the
capital stock. The whole of this large
sum from the sale of lands belonging to the
company will be lost entirely, IL the
schemes Of the Chicago and Northwestern
clique were successful. The prompt &C
tion Of Mr.. Tracy, the President, in pro-
cseding to build the road to Council Bluffs
will secure this valuable franchise to the
stockholders
The allegation that the Rock Island l.
Pacific Railroad Company 10 On Illinois cor
poratien is incorrect. The Chicago, Rock
Island L Pacific Company is . new ccrpo-
ration, organized under the laws Of low on
August goth, 1865, and which purchased
the ssock Of the Chicago L Rock leland
Company for that Of its own new issues,
thss placing the new company under the
laws and control Of the State Of lswa. and
not amsnabls 70 the laws Of any etheu
State. This 10 matter Of fact, and not o.
opinion.
The prstsncc Of this Chicago 4 North
western clique for holding : pretended
stoskholdsrs' meeting in Illinois 10 there
fore not only illegal, but has not even
shadow Of common sense or law to res
upon. The highly respectable names Of MI