The evening Argus. [volume] (Rock Island, Ill.) 1861-1871, 1869-07-19

ROCKFORD, ROCK ISLAND AND ST LOUIS
RAILROAD.
A Director Reviews the Company Pamphlet

Az tHo tbH NhltukV hA''-s
In the pamphlet published by the Rock
ford, Rock Island and 81. Louis Railroad
Company, advertising its bonts, my name
appears as one of the incorporates, COM
missioners aud directors Of the Company,
and rs have received letters from various
parts Of the country making enquiries about
the value of its coal lands, the prospect OF
its completion, and the value Of its bonds,
| feel it is due to myself to publish short
statement Of the facts, and thus relieve
myself Of oil apparent responsibility in the
matter,
THE CONPANY's "COAL LASDs."
The pamphlet asserts that 1.-THE Company
has acquired coutrol, partly by purchase,
aud partly by leases of fifty years duration,
Of over 10000 acres of choice coal lands
situated NEAR Cleveland Illinois. am q
mining engineer by profession, aud was for
many years practically engaged in mining
coal at Carbon Cliff, where | still reside,
which is within four miles Of Cleveland, but
for the last few years have had no interest
in any coal property. | AIN, however, very
familiar with the coal lands in that vicinity,
and in my opinion the Rockford, Rock
Island and St. Louis Railroad Company
does not control by purchase and by lease,
a one huudreth part of 10000 acres of land
in which there is workable vein Of coal.
Cleveland is at the northern outcrop of the
coal measures in Illinois, and coal is found
in this region ouly in detached basins. !
never yet have seen man who protested to
know anything about geology or the coal
deposits Of this vicinity, who Supposed there
were 10000 acres Of workable coal lands
within a radius Of twenty miles OF that
place but | have frequently heard the
question discussed, whether there was coal
enough within twenty or thirty miles to last
the present generation. AS far as am in.
formed, the lands that have been bought in
the vicinity Of Cleveland do moi am2unt, all
told, to 1000 acres, and the leases simply
provide for the right to prospect for coal
and if found the Company is to pay certain
royalty for taking it out
SO far as the coal lands are concerned |
would therefore say to all enquirers, they
cannot be relied upon as security for the
free millions Of yoidJedriHq gold bonds
which the Company originally contemplated
issuing, much less for the nine millions
which | understand it now proposes &c
! Issue.
| HAS THE COMPANY \ LEGAL EXISTENCE?
There Is another fact to which wish tc
call the attention Of those interested, inyolv
ing the question whether the company re
ally has II legal existence. The charter
Section !, provides that the commlssloue
therein named are authorized to open sub
scription books for capital stock, and "shal
keep such books so opened until the sum 0
fifty thousand dollars Of said capital stool
shall be- subscribed for" The section fur
| Their provides that "said com missioners shal
| require each subscriber TO pay five per cen
! on each share subscribed for by him at tn,
time of subscribing and when tho sun
Of Fifty thousand dollars shall have been st
! subscribed tor, the commissioners snail cal
u meeting of the stock holders "to chose
| the frat board of directors Of said com
pany,' and "when such directors are chosen
said commissioners shall deliver such sub
scriptOn books, with oil sums of money re
ceived by them as such commissioners, &c
SAID directors Not dollar in money o.
other things OF value was paid by the sub
scrbers Of stock at the time of Transcription
or at any other time.
1t was not contemplated at the time tina
the company would undertake to build tb
road but the whole thing was done, as
understand 1t, TO get up an organization
with view of contracting with the Chicag
& Northwestern Railroad Co., for the build
ing of the road from Sterling to Rock Is
land, on receiving such assistance as coult
be procured along the line. Whether sucl
an organization entitled the company to
legal existence under the charter is a ques
ton of law which do not feel competent t.
discuss; but the facts are correctly stated
as can be abundantly proven by those pres
| ent.
THE PAMPHLET 4 FRAUD AND SwINDLE.
| Some effort was made to get the c. & n
| W. to take hold of the enterprise, but with
out success and, without my knowledge o
consent, the pamphlet to which alIude ha
been published, advertising the bonds Of tn
| company for sale at 80 cents on the dollar
payable in currency. was in the City o
New York when | first saw the pamphlet
and Immediately denounced it to the lead
ing men in the concern as "a fraud anC
swindle, and since that time | have uni
formlv spoken and written of it in the sam,
way, and nave had nvshins whatever To d,
with it.
HOW THE COMPANY CAME BY ITs ROAD BED.
The Sterling and Rock Island Rairoa,
Co. some years ago graded it's road bed ant
then virtually abandoned it, and the Rock
ford, Il. |. d st. Louis simply appropriate
that road bed TO its own use without payinI
a dollar therefore, and has built road upoI
it for some twenty miles and extended it
road to Cleveland, making in all over thirt,
miles at this end of the line which is nov
completed and being operated. The com
pany is also grading its road bed between
| Cleveland and Moline but where the mon
ey comes from no one in this vicinity seems
to know, unless it be from the sale Of bonds
SUBSCRIPTIONS.
The townships Of Moline and Rock Island
however, have recently voted to subscribe
$50, 600 each to the capital stock of the
Company, payable in their bonds when the
road is built through their townships as
understand it. If the Company get their
subscriptions they will constitute the only
subscriptions Of stock where anything of val.
ne was to be paid of which | have ever heard;
except that ! once heard the Company had
bought locomotive payable partly in its
stock and partly in its bonds but do not
know whether there is any foundation in
fact for that report.
THE CoMPASY's FINANCIAL STATUS.
! am, however, familiar with all the trans,
actions Of the Company up to the time the
mortgage was made, and the pamphletissued
advertising the bonds for sale and at tina.
time the concern had not dollar paid in as
capital stock, nor a dollar which it had
ritr Il n IL e.. L