New-York tribune., 1876-08-18
TIE ROCK ISLAND RAILROAD COMPANY

To thc razor Of The TrtJHne.
SII.: in the report Of The President of the Rock
Island Raro Company, made 70 the sioccd'ss under t4"
Of April T. 1871 au5on is made 9" ur sr"gre,s q tie CON
struct on Chicago ana souW c,ern f"ir'li ont
pany and the ac' u 5 De n2 opeT1'"i " tara" '7iTn rN
i tho T. l. Co II tLcl aaIs No aeuaii" aud M contract
"A to terms Of operating yet been msde but PIE 'y on
will be-" Tna o. ths contract nave hl' 5t' ''A
Given 10 thp kuld,f Tar a5 can learn Can you H
f,r1n the public .aey AID the obnea''' H''''N"'
tie r. l. Co. Jy ;cmi Asan. IN IN lat ''' IL ai"'"'
that the H !. CO. las advanced 1" te G. an "-' '''
s,,27 900 curing paat year II 10, 'hr to.t ' E"
proved an obcrols one tho H. CO.. ules rto a. cor
responding advantages sion are NOT .ip'r' g. Are A'e
sscA aCyantago., aaI why Was sGcl contract nad5i
Ae,s. Yor., aug. -, 1870. IhF'I'-"
Really this solf of thing is becoming t're,omo We
however gre space 10 ono Of EgI'gous conrnEn'''h'
inat tbr subject While TIE TRIdrNE Is both WING
and anxious 10 furnish to yealos with ah rr'sd' h-
fooa..on IL may ~ wr De- understood ih'' 1t keoP' ID
corn. OF detectives 10 ferret out the secrets OF f ''
officials such the contracts between the Dh""so'
Rock Island and Pacific and the Chicago an' ''nth-
Western Railroads, which seen TO be P'fAcu"r'!
guarded But the information sought by Our CORE
sponaent seems 10 be both pertinent aud 'au'br' ana
70 which every stOckhOldcr ioi one or ono ,h"i'."'
shares entitled upon application to ihe ohcois 'i 'i'
company, and If refused e has or ouSht 10 nave t'
power 10 enforce IL. However, such inioIinailoh
az we are able to glcan from the pub
( Isbcd reports Of the company, and oth@
| sources, may throw Hight upon the question.
PoOr's Railroad Manual for 1874, on page II, says:
The Chicago and Southwestern Railroad, though bn'.t
under separate charter belongs 10 the C.. H. l. AMI T.
| X T. CO., and is known the Southwestern Branch
If this statement absolutely correct II would solve
the whole question and establish the fact that all the
accounts between the two companies SIMPLE nctions
and that alleged Indebtedness Of the g. aud s. to tue
c. r. l. and T. Co Is more an asset OF the latter com
pauy than il its own outstanding liabilities But, while
! ne statement OF the Manual may be virtually cor
f.,l4ul lgallV Is
Chicago and Southwestern Company own line of road
| ~ follows:
Washington, Iowa, 20 Leavtnworth Ksn.@03 miles miles
Bra ch Junction " htcison 90 '2'e'
h'ie'
The ct;al stock stated 10 be $7OOOOOO, but We p'-
eya that not dollar in cash or value was ever Iad
Ior it, The bonded debt is q first mortgage per cent
,d free OF tax principal and interest guaranteed by
| the Chicago, Rock Island and Pacific Company for
40 1000 upon the main line, and fret mortgage
uer cent gold (unguaranteed), for slOOO.OO0 on The
| Atehjson Branch The Rock Island Company have
away. set up its guarantee was for only per cent
currency which generally, II not wholly, has been ac-
c.tted by the bondholders in payment OF their gold
c,unons Now early In 1875, Dows, Winston and Others
I'm fine interest O, the Chicago, Rock Island and Pacific
Compauy commenced proceedings In foreclosure on the
S. 900 600 bonds. the ground that the oouh-"esI
had made default In the payment OF It's interest o the
date of the completion Of the road and that the Chicago
Rock Island and Pacific Company having ph inc lhtei-
eat a ii accrued and guaranteed the future interest
ma well as the principal maturity OF the bonds was
entitled to be subrogatod 10 the rights OF the oigh
| boudhoders for all IL should pay III the
performance Of Its contract Of guaranty This petition
was opposed by the holders Of the 81 0OOOOO b0nds
known IA the AtchisOn Branch bonds, who claimed
that their bonds sold upon representations made
with The knowledge OF Rock Island Company, TO the
effect that the company would lease the branch road and
the main line such terms waud secure the pay