The weekly Oskaloosa herald. [volume] (Oskaloosa, Iowa) 1855-1885, 1872-05-16
IOWA SOUTHWESTERN.


southwestern, appearing in the Iowa
City papers, we publish them in full
below. The Press says:
The RAIL RoADs.-The street for
a week past has been full of damag-
ing and unseemly rumors as to the I.
5. w. road. Damaging, because
there is much idiocy in idle tale-tell-
ing at this time when We are run
ming the line through the territory of
our neighbors in English River val
ley, and west of us and in right of
way matters desire their good opin.
ION OF and confidence in the project.
Unseemly because the citizens have
not yet investad dollar in the road.
have paid no tax therefor, and so
cannot regard any lapse in the con-
tract as matter vitality in the nature
OF an investment lost to them, for
they have not yet invested. The ru.
mors and idiocies of various degrees
had their origin in an order to Mr.
Johnson, Supt. of Construction not
to put his force on for month vet.
To learn the facts fully Mr.. Ran
som, who has been from the first
most active in watching every phase
of the developement of this great
project and Governor kirkwood who
as President ofthe old local organi-
cation is entitled to a knowledge of
all the why's and wherefores, went
to Chicago last week and in consul.
tation with Mr.. Hinckley, learned
that the money stringency in New
York City has made it necessary to
negotiate the bonds with a German
house, WHICH is being done. They
leaned also that the iron CON.
tract was made, secured and
ready for the delivery of the
rails in accordance with its terms.
Mr.. Hinkley sent here the cash with
which to discharge all the bills
against the construction company
contracted since the grading was re-
sumed. The surveys and right of
way operations continue, and all the
delay will be in the completion of
the grading which as we have said
Is due to inability to negotiate the
bonds in New York City with any
OF the great syndicates of metropoli-
tan bankers who are the source of
the capital usually invested in this
way. The German houses are now
the most prominent takers of all
such investments, as the payment of
the French indemnity has stimulated
the new empire to an unwonted f.
nancial activity.
Mr.. Geo. Boal, President of the
Keokuk, Iowa City & Minnesota road
has been in New York City on busi-
ness connected with placing the
bonds of that road with a view to Sc
curing iron from the line. While no
arrangement is yet consummated he
he is led to believe that the termina-
ton of the present futter in the
money market, which is due to the
Alabama complications, will very
probably open the way to a negotia-
ton which shall be all that we de-
SAAS As eAoS ohCStioh'
The RAILROAD SITUATION Kirk
wood and MIR. Ransom have Just returned
from Chicago, where they had full con-
ference with the parties backing our South
western railroad. and Mr. Boal has return
ed from New York, where he has been in
the interest of our Southern road. We
have seen these gentlemen and pumped
them dry of all they have learned about
these projects, and will give it to our read
ers as definitely as we n, and would sug-
gest that not more than one hundred of
them require these gentlemen to repeat the
story each day, for we have reason to be-
lieve that they are very much bored with /
very naturally interested inquiries. In re-
gard to the Southwestern, work will prob
ably be suspended for time, and for this
reason Mr.. Hinckley had bargained for
the sale of his bonds. One million Of dol
lars was to be forthcoming so soon as the
bonds were printed and executed, ready
for delivery, a certain number of gentle
men having agreed to take that much of
thebonds and advance the money at once.
While these bonds were being prepared
the New York money market worked up
to very great stringency, and when de-
livery was attempted, most of the parties
whe had agreed to take them backed out,
which of course broke up the entire sale.
This left Mr.. Hinckley without means to
carry on the work, and he is compelled to
stop. He has now other negotiations on
foot, and with the strong backing he has,