, 1876-03-13

NEW METHOD OF BUILDING RAILROADS..
70 tbs Editor ef This Chicago tribune:
HA1EsDuno ILL.,, March "a corporation has
been formed at Qalesburg, ILL.,. for constructing
q railroad from Kookuk, H., 10 Chicago. dis
tanco Of abqut go miles. Tho route la practl-
Gully m ntr-inc. The ROAD Ia to DO natrow-
gauge. Its eBttmntcd cost for building and
equipment Ia from $40. 900 to $4,000 por milo.
Tho inoorposatozs sro among the wealthiest mon
In the central part Of the State. Tho plan Is
novel, and comulends itself rsadily to communt-
in ncad Of Enilroad fhclltios. Tbs SUBJ
acriptIous asked to MD the Company
| In construction aEn based upon Transports
| tion, and not upon stock. Tho incorporators arc
tho Stockholders. Tho stockholders advance tho
ncaus to ipaugu1ase tho project, to bnild the
road. no part Of tho transportation subscriptions
to ba psYablo until tac, road is built.
the Inns subscriptions to a given amount, such
| subscriptions to become due nud payable Thcn
tho cRrs aro runnipg on tho road to tho points
respectively subscribing. Whou tho subscrlp-
| tious nro paid tho payer receives
CERTIFICATE or TRANSPORTATION,
which certificate iB negotiable, entisling tho
holder to transportation on tho roal at tariff or
contract rates, to tho full amount Of such paid
subscription. by tho torms Of tho charter Of tho
Company, those certificates arc made first lien
upon tho road. Tbat tho Company may not bo
embarrassed In operating It's road, whilo these
I kEAuBpOE[&t10 C01tlHEhte0 AGG al OuIHkn1Qj0R
lien, 1t requires tho holder, ouch tlme lo may
| make uae Of bis certificate for passenger or
ftoght transportation. to paY ono-haif tho
charges In cash. Iu this WAY q fund is provided
I for operating tho rond until tho transportation
certificates arc liquidated.
The Company, or stockholders, as boforo inti-
mated, nto tho partios Who furnish tho cash for
insugnratlng and prosecuting the work OF con.
that may exist whom tho local I'D along tho limo
is raiaod. II a mortgage loan should bo effected
It has to bc subordinate to tho transportation
lion. as provided In tho charter. Az aecusity to
tho old plan Of issuing stock subject to mort
| gage which generally shnras the fate Of being
wiped out BY sale OF the road under 1oro-
closure. The plan waa originated BY II. II.
there Is scarcely any community but TINT may be
| able to 6ecuro tho advantages OF line Of rail-
way .. tho cost abovo named.
It 10 simply prepayment of transportation,
tho advantage Of railway communication. Well
to-do farming communities, on thAt basis, will
bo hblo to contribute Sum sufficient to induce
capitalists to pool and furnish tho cash for
by local did. On this balls no ono but can
contribute something. 81 bis guarantee Ia auro
for return OF hts money. II q aubBcribcr has
no transportation, h!s certificate is negotiable,
u good aa cash. II tho railroads Of tho country
had boon built upon that basis, our farmers would
hnve boon Eichcr to-day, and burdsnBone
county, city, and townahlp taxation would
not e1tHt, "a It now doeH, It takes nothing
out Of the community. but adds to 1t.
II leaves tho community with lino Of railway
and ita conconttans improvements, Which adda
to lta substantial wealth and helps to boar tho
burdens Of tax alton, and no ono distrebsod or
impoverished by roason OF having aided Ia tho
construction Of the road.
| IN MANY or TILE nuHAL. DIsTnfGrs
there arc tarnaess who eau tako from $1,000 to
in Al Inn mf>41
yoar or tHo. BY Tint they got their money back.
less the iutorost. But nghtunt thu 1oes Of inter-
ent theT haye the railroad. which brings them to
market. Il they 1.-Two any distance from line
Of rhilroaa, tho loss 10 driving ox waBoning to
rail is rnauJ times creator than tho intorcBt on
tba money. II they should bo near to another
line of tai!road, they will be many times CON-
ponsated for this interest BY tho fact Of having
aecared competition In transportation rates.
Tbs BRme IL true Of
| TowNB AND cr11Es.
Cities especially looking ito = johblug trade,
could take 10 botte5 method Of adding to TINT
trade tAAn by investing III transportation oertitl-
catea NJ mcana Of aiding in the construction
Of railways. It ties now toritory to them. and
tho fact Of being abls to lay down goods to tho
country merehsps, freight paid, would be mat
ter OF no small tuduco.neuk
The cesuhcatea arc 70 call for freight at regu-
lar tariff satea. It might DO urged By somo that
those ratios would bo put high Iii orler to hAsten
the liquidation Of tho certificates of trAnspora-
tion. There ase soyoral roasona Why that could
not bo done. First, our stato law fl1es tho max-
imum rates, beyond which railway company cam
not 10, and thAt maximum was established
By 4 Legislatuse.etected substantially, On tho
Issue OF making laws to regulate transportation
for the protection OF tho hhipper. That iaw
statos tho ratio beyond which the railroad cannot
20 in ita chArgeu Even II no such Ian existed,
the condition requlrea thns tho transportation
shall bc ss Irregular tariff contract rates. y
Az there will bo ! class OF persona making uRo at
tho road who nr0 not the holders OF Transports
top, tho lCompany could not afford to make
such rates ~ would drive theu9 from tho road.
It is Ayo truo thss the road h3a to depend on
the 10 per cant caah on each ehipmens for ita
operating fund. Ths road would, therefore, DO
ut sha moroy Of tho people, rather than the
people 1t tho mercy OF tho road.
The plan ts 10 thoroughly equitable that It
cannot fail IN recommending itself to the pub
lio. Tho men who llavo this proleot In band
azo porsons Of high business standing and ol
wealth. and have undertaken tho project NTH
tho purpose Of puah!ng tho whole line through
this rear with tllett oWa meana, II tbey hayg
proper cooperation from tho people sloug tlfe
route. The surveyors aro allesdy In tho fold
running tho line Of tho Keokuk. QaleBburg 4
Chicago Halfway, aud NO will watch with lntolesl
tic progress Of this Company on the new basia.
II,
THE aoARD OF TRADE COMMITTEE
The Chairman OF tbs Board OF Trade Com
4 - H{FHtAf