The daily Argus. (Rock Island, Ill.) 1873-1877, 1876-04-11
THE ROCKFORD, ROCK ISLAND q
ST. LOUIS RAILROAD.
Mr.. osterberg's Report Co ths German
Bondholaers of the Rockford,
Rock Island st, Louis
Road.

MT. 1eyman OSterDerR, the DOnunOld-
ers' agent who purchased and has been
managing the road, publishes in his paper
at Frankfort, the German american Econ
OB,ist, report Of his proceedings. He
says that the subscription to new bonds
allotted TO the bondholders who purchased
the road were taken up by only about 3d.,
100000 tout of total of $9,000,000); and
as it was from these subscriptions that the
money was TO come to complete the
purchase and put the road in tolerable
working order, he was compelled to petition
the court for an extention of time of pay
ment. He says that this result is due to
the Vaccinations Of those who would pre-
vent the bondholders from acquiring the
road 10 order that the intriguers may
themselves purchase it at a price far below
its value; and that it was the courts
sympathy with the much. deceived bond
holders that induced it not only to grant
the extension, but also to put the bond
holders agent in possession before they
had completed their payments.
On taking possession Nov. last, Mr..
Osterberg found road on which few or
no repairs had been undertaken for four
years, road which, according to the Re-
ceiver's report, required 100000 for re-
pairs" Mr.. OsterbeTgs engineers, how
ever, were able to reduce these estimates
below $780, 900 for what was needed to put
the road into tolerabe condition Reports
had been spread that the line was not safe.
for the purpose OF diverting traffic, Mr..
Osterberg says He found that the road
bed could do without further repairs until
spring, but that the immediate reconstruc.
ton Of eight bridges and the repairs of the
others we're indispensable; and that 200
tons Of rails and 10000 ties we're needed
TO prepare the track for winter. These
repairs he had TO provide for from the cur
rent net earnings. He had 500 men en-
ployed, and in few weeks had the road
materially improved and an excursion train
over the road, in which leading citizens on
the line took part by invitation, made
known its efficiency. The result
had been an increase in passenger
traffic, the earnings from this source
being $4,000 greater 10 February, 1876,
than or the same months in 1875. The bad
roads consequent on the mild winter had
prevented the receipts of the usual guam
tity of freight for shipment. Again, the
three greatest railroads of the west, the
Chicago, Burlington & Quincy, the Chicago
4 Northwestern, and the Chicago, Rock
lSlduu u
and mutually pledged themselves to cut
us off from traffic with Chicago; the first
named road, because | rejected their offer
to purchase the Rockford Road for ST.
100000; the two latter because they
thought to compel US to give up the road
to their friend Gable, who had made an
offer to this effect through German bank
ing house in Chicago. On the other hand,
hol he, Tho limo ,hiaA,-
in our favor wherefore we were able to
obtain extraordinarily favorable results 10
the first month considering the circum-
stances. Mr.. Osterberg reports the net
earnings for November to have been about
$4,000; for December, $4,000; for
January, $4,000; for February, $21 900.
When the time for completing the pay
ment for the road had been extended by
the court till April |, offers to purchase
were made from several directions, and
nearly closed that Mr.. Osterberg put
Europe for a week. A railroad president,
famous all over America for his extra
ordinary practical knowledge of railroad
affairs on this occasion expressed himself
in private letter that the road in less
than two years could easily earn per
cent gold on S3,0O0,O00, which was the
sum named in the negotiations, and be.
sides be of considerable advantage to the
purchasers Two days before my de-
parture, the aforesaid opposition party,
which makes every effort to snatch the
road from our hands, received telegram
from banker in their employ here( Frank.
fort to the effect that the bondholders are
not able to pay the rest of the
purchase money; and they succeeded
in making the people with whom
was treating so undecided that
was compelled to break off the nego
tiations in orGer to avoid longer delay il
my departure. There cannot be the least
doubt that the road, as soon as it is com
pletely redeemed, can be sold within yeal
on such terms that not only the interim
scrip issued by the committee at 80 will b.
worth par, but also that the holders o
committee certificates will receive at least
$500 Of new bonds for every $1,000 ole
bond, aud that meanwhile the net earn
ings will not only cover the most indis
pensabe repairs, but also that the punctua
payment Of the interest in the interim scriI
stands beyond all question"