, 1876-04-10
RAILROAD NEWS.
Mr. Ostcrbcrg's Report to the German
Dondholdcra Of tho Rockford, Rock :
Island & st. Louis Ront.
A Michigan Metropolis Without Rail
road-Tho Deficiency to 10 Supplied.


THE RoCkFoHOt ROCK ISLAND ST. LOUIS:
Mr.. Hoymau Oatorborg, tho bondholdofa'
agent who purchABcl and has bean managing
tl.o rond publishes in hls pnpor at Frankfort,
tho Gernan-Amcriean Economist report Of
his proceedings. lilo 1nys that the subscriptions
to now bonds allotted 10 tho bondholdors who
purchased tho road woro taken up by only about
1000, 600 tout Of total Of 10000 O00); and as
1t was from those subscriptions that the money
was to como to complete tho purchase and put
tho rond In to1erahlo working order, ho Was
compelled 70 petition tho Court for an OK
tenalon Of time OF payment. IIo SAYS that
this result IL duo to tie Vaccinations Of tloao
| who would rtovont tho bondho1dors from ho-
quitting tho road IN ordor TINT tho intriguors
nav themselves purchase Il at d prico far below
Its yall,o: and that 1t wns tho Courts sympathy
| with tho mucll-tocolvod bondholders tint In
tucoti 1t not Gully TO grant the extension but also
to put tho hondl,oIdosH' ngont in posBeHslua bc-
| foro they Ind conrsetod their payments.
On taking possession Nov. y lust. Mr., Otter
berg " found road on whtc1, few or ho repn1rs
had heen undertaken for four yoa1s, road
which, according to tho Rccciyer'sroport. rc-
1uired s500,0Q0 for ropnlrs." Mr.. OHtor-
Gers's cns!necrs. however: wera able to
roduco these estimates boiow s2o0,o0U for
condition. noportn had been spread that tho
| limo WaB not Hn{e, for tho purrcBo Ut diyerting
traffic, Dir. Ostorborg Ha5s. 1lo found TINT ths
rond.bcd could do without further ropatra until
spring. hit TINT Tue immediate recommendation Of
| eight ordgan and tho rcpnirs Of tho othors woro
Indispensable; aud that 200 tons OF rails aud
2O.0UD tics weto needed to prepare the track for
winter. Theae repairs ho Ind to proyido for
from tic currant net oarniuEs. ue bal GOO n,un
employed. and il tew wcoks had tho road ma~
| terialy Improved and mn excursion-tran ovor
tic road, IN which loading c!tlzcns on tho
| llno took part by invitation, mado known
ia chioIenry. Tho result had bnon nj, In
crease III passenger tta|io, tho earnings from
tis source being a5,201 gtoater in February,
1876, than for tho eamo month N 1876. Tho bud
vented tbo receipts Of tho uaual quantity Of
| freight for shipment. Again, tho threo groatcst
railroads. Of tho West, tho Chicago, Burlington
4 Quincy. tho Chicago i Northwestern. and tho
blnaton aud mutually plodgcd themselves to cut
| us off from t1nfi}c with Chicago; Tho trst-named
road, because rejected tleir oi1er to purchase
tue Rockford lsoad for :1,5oo,0oo; tho two
civo up tho RoadD to theIr friend Cable, who
had tuado M oi1er to this effect through 3
Gelmau banking house In Chicago. On tue
other hand, wo had tho community on the line
ob.ain extraordinarily favorable results Ia tho
first month, considering tho oircumstaucos. Mr.
Ostorberg reports tho net earnings fot 'Novem-
her to have boon about $4,000: for December,
$4,000 for Junuars, si2oooi for february,
Whom tho ttrno for completing the payment
for tho road had boon extended BY the Court til
April l. ofrers to purchase Wero mado from Bsy-
eral objections, aud negotiations with ono coin-
pany were 30 nearly closod that air. 0ssorbosR
nut on tue tiMo Of Ills departure for
Europe for q week.. 4 fatlruRd President
famous all over Amer1ca for his extraordinary
practical knowledge OF railroad AFFAIR." on thls
occasion expressed himself IN n private letter
that tho road in lesa than two yoarB could easily
earn per ceut gold On s3,O10. co.,, which was
tho sum named In tho negotiations. s.--aud be-
Bues bo Of considerable advantage TO tho
purchasers. "Two days boforo my departure,
Tho aforesaid oppohision party, which makes
every effort to snatch tho road from our hands,
received telegram from a bankor lu their cn-
ploy hero {Frankfort) to tho cflcct that tho bond
holders arc not ablo to pay tho reat OF tho puff
chase money; aud tnoy succeeded 10 making
tho pooplo with whom was treating 30 undecided
that I was compelled to broak on the nogo-
tihtions In order to avoid l0nger delay Ia my
departure. There cannot DO the least doubt
TINT the road as soon as 1t lB completely re-
doumod, can bo sold within year on such
turns tlat not only tho interim scrip issued by
tho Committoo at 10 will DO worth par but also
that the holders Of Committee certificates will
receive ut least $500 Of now bonds for every
l,00u old bond, md that meanwhile tho not
earnings will not only coYor the most inGiB-
pensabla repairs, but also that tho puuctual
payment Of the interest tu tho interim scrip
stands beyond all question"