The evening Argus. [volume] (Rock Island, Ill.) 1861-1871, 1869-10-12
PEORIA d. ROCK ISLAND RAILROAD.
Full Particulars of the Transaction with
mir. Cable-Interesting Statements.

Messrs Gould & Page, Directors Of the
Peoria g. Rock island Railroad, have fur
nished the editor Of the Cam bridge Demo.
crdt with the following full statement Of the
negotiations between the Peoria & Rock Is
land Railroad Company and Mr.. p. l. Gable,
by which the two interests are consolidated:
An agreement, formally signed, sealed
and forwarded to the Secretary Of State at
Springfield, consolidated the Rock Island d
Peoria Railway Company, under the name
Of the former, upon the following terms -
Mr.. P. l.. Cable Cancelled and surrendered
to the p. & R. I. Company $l20,000 out Of
the $4,000 of certificates of the capital
stock in the r. !. Il p. Company, held by
him, together with 81, 900 of Indebtedness
against that company, which was contracted
for repairs and held by him in the name of
the Coal Valley Mining company. He re.
tains $4,000 of the capital stock, which,
under the consolidation, is placed on equal
footing with the capital stock of the p. Il h.
|, Company, and Mr.. Gable thus becomes
stockholder in this company to the amount
OF $4,000 He also holds the mortgage
bonds OF the Y. l. h P. Company, amount.
ing to Sl500O0, the payment of which "a
assumed by the P. & Il. |. Company. That
company, on it's part, receives the r. |. P.
or Coal Valley road entire, assumes its liza
bilities tconsistiDg of the above named bond
ed debit and allows Mr.. Gable free track
service for the transportation of 10000 tons
of coal per annum into Rock Isand-he
agreeing to pay - cents per ton for track
service for all he may transport above that
amount. He also has the privilege of doing
such freight and passenger business as he
NAV obtain upon his train between Rock Is
land and Coal Valley, paying the company
one.half of the gross proceeds therefrom.-
Thus, briefly stated, the p. & Il. |. Railway
Company has bought the Coal Valley Rail.
road, with its property and privileges, pay.
ing Mr. Gable therefor $50 900 Of capital
stock, $4,000 of mortgage bonds, and
track service between Rock Island and Coal
Valley for 10000 tons of coal annually, and
the Rock Island & Peoria railroad ceases to
exist. These terms are considered very ad.
vantageous to this company, and places it
in the best Of circumstances for completing
the undertaking by its own resources.
Twelve miles of the Peoria & Rock Island
Railroad are completed and in operation,
with three depots and important depot
grounds in Rock Island. The President is
authorized TO obtain at once the necessary
bonds of the company to the amount Of ST.
100000 These bonds will run thirty years
will draw interest at the rate of six per cent
per annum, and will be payable, principal
and interest in gold Mr.. Frost, of the
Toledo, Peoria & Wabash Railway, says tha,
they can probably be sold without difficulty
at 30 cents on the dollar, net, which would
produce s AGO, 900 sufficient to cover the
engineers estimate Of 10000 for compet
ing the road, ready for operation supply q
deficit of 1860 in the subscriptions 70,
grading; pay off the 100000 indebtedness,
of the old R. |. & P. Company, due Mr.
Cable, and still leave a balance of 98,040
with which to commence stocking the road
Now, instead of proposals for ironing tbs
road, as once was the case, the company il
receiving bids for ats business. The T., p.
W. offers 10 per cent. of all business that
this road may bring it; and Mr.. Frost. who
is gong East, will advise the PENNSYLVANIA
Central to make the same offer for business
through to New York. These items are
significant.
Besides the track service of Mr. Gable
there is also probability that the comp any
can sell to the Rockford, Rock Island Il St
Louis Railroad company, track service sutfi
cent to pay the interest upon the indebted
ness of that end of the road, thus wipiug
out, by issuing new bonds in place of those
and paying the interest in track services
that the whole $3.50, 900 of indebtedness, fo
! the mere cost of the extra wear of track.
Tie Board Of Directors of the consoli
dated company wac increased 70 ten, By