Audubon County Republican. [volume] (Audubon, Audubon Co., Iowa) 1885-1894, 1888-03-01

creased earnings and increased expenditures,
Is also encountered with another charpcteris-
tic piece of railroad.
Chairman: see II Is assessed here at
fifty five hundred dollars per mile.
MIR. Jeffery: hope you will not hold me
responsible for that assessment IL is also
encountered by the Cedar Falls n Minnesota
Railroad, seyenty-six miles In length. The
dubuque \ Sioux City for term OF forty
Years agreed to pay minimum rental of
$500 per mile per year for this property.
$4,000 year. The gross earnings of the
Cedar Falls 4 Minnesota Railroad, which
is rented for $4,000 per year to the Dubu-
cue Il Sioux City, amounts 10 from $780,
COO to SiSb, 900 per annum. Now 1t may be
said that II Is no business OF this committee
no business of the legislators, no business OF
Tie public that the Dubuque Il Sioux City
RAILROAD Is hampered and encumbered by
worthless piece OF property at SO exorbltant
q rental. For the moment consider this
The Cedar Falls n Minnesota bonded debt Is
S1,S7i, 600 OF seven per cent bonds and
$50, 600 Of six per cent bonds, and the in
teiest charge upon that scvcnty-six miles of
property annually is sos iQS. Gentlemen,
here is piece Of property seventy-slx
miles long. with earnings Of $3.50, 900
w Elat,tNt NhlUuNliN WIN iiltitSh tnstt AVS VI
sos, f9S annually; a piece OF property oper-
ptod every day in the year at a loss, u piece
of property which II OF, rated by tho bond
holders or stockholders would DO operated
every day in the year at a loss. Is II right,
Is IL equitable to ask them, or the company
which has the misfortune 20 operate II, to
accept lower passenger rates or freight rates
than they obtained during the years that
tley have operated this line at loss' IL
may te said these two roads are not fair eN-
amrles Of other property This may be
true. | SPEAK to You only about the roads
with which am connected aud following
that, and now | will draw Your attention to
tie one undrod and eighty three miles OF
the Iowa Falls 4 Sioux City Railroad, OF
which ann also the general manager.
Let me ray here, gentlemen, that the Iowa
Falls X Sioux CITY Company Is not the owner
OF any rolling stock or equipment IL owns
the right of way and the grade, the ties,
steel rails, perhaps own thrco-fonrths or four
ifths of II, iron rails upon the rest of II, aud
wooGOn bridges. Ii has bonded debt
which think Judge Hubbard to-day almdad
TO In his address to you, of 81, 500, 0o) of
seven pr cent bonds, lts capital stock ~
"a, COO. coo. The stock aud bonds together
represent 81, 400, 600 upon iS3 miles Of road.
! want 10 Iecur 10 the explanation that Judge
Hubbard gave In reference 10 his Invest
mcnt in this property many years ago, NJ
the solicitation of John L. Blair. lie says II
Should Illustrate why In the then thlnly sell
tied portions of the State OF Iowa, without
population In sight, without traffic In sight,
without revenues In sight, investors In that
property who took these risks were en-
titled to larger opportunities OF making
money upon their Investments than had they
purchased railroads OF known values, OF
known earning capacity, OF known tonnage
and Of known resources. But won't dis
tuss this evening the Iowa Falls " Sioux
City road from this standpoint OF 81, 400, 900
debt upon 1888 miles of road will put the
stock of "a, coo, 600 at the price that II was sold
for In the last eight or nine months, namely
fifty cents upon the dollar, and call the cap-
tai stock rs being worth to-day 10 It's owners
$500, 600. 10 this add the bonded debt al
ready mentit ned, $4,000, 900, and you have
the piopery standing to-day Mt 80, 100, 900.
Now what does that represent? A railroad
that Is half constructcd--what you may term
| n fuTlace railroad--a line with gradients of
| from lfty-two TO ifty-iiye feet per milo; u
| line In many places with narrow banks; q
| line without an iron bridge or a stone or n
| brick culycrt upon II. A line one-half of which
! Is rot Lallastod, and thirty 10 forty miles OF
| which Is still laid with the iron rail used In
its construction twenty years ago; n line
| that las moi II station house upon IT, except
| what IVES built twenty years ago, to soDthe
| the imaginary requirements OF u population
| which were not present; a line without ter
ninal facilities in Sioux CITY for the tran
| snciiOn Of business; line without suitable
| aeon nodations In Fort Dodge, one OF It's
| principal stations, and the terminus Of the
| Igns OF its pass, niger and freightengnes. Do
| tie Iowa public and the Iowa Legislature do
| size 10 have railroads remain In snGh cOndl-
| ton as this within the borders of this State?
| Is il not the broad and wise policy 10 permit
| such revenues to be earned as will enable
| n gradual Improvement 10 he made on
| property such as the Iowa Falls & Sioux
! City, OF else The payment from these reve-
| MUGS Of the Interest on the increased debt,
| The proceeds Of the additional bonds To be
| spent In improving and perfectirg That road
| way? What are these lmpr0s en- 9nts?
| had 10 make the same estimates, the same
| examination, TIE same reports for the iowa
| Falls q Sioux City line that | made for the
| owners Of the Dubuque u Sioux City, and
| for the same reasons. These owners found
themselves, when they bought this property
Tx or eight months ago, In possession OF
| something Incomplete; In possession oil
| something that had TO be built up, that had
| 10 be developed. What would 10 cost 10 dc
| this? The Iowa Falls IL Sioux City Railroad
needs 20 locomotives, IL passenger coaches,
| baggage, mail and express cars, 600 box
| freight cars, 100 coal cars for It's equipment
| costing about $3.50, 000 For changing grades
| Where practicable TO a maximum Of thirty
| i've feet to the mile, $3.50, 000 and Will say
| light here Il at at some points, as at Cherokee
ard Foit Dodge, II Is absolutely impossible
10 change from the existing gradients, and
| they are ffty.two feet TO the mile, entailinq
| uIon the managers and operators OF thai
4 pICporty for all time TO come great expense
in moving freight over such heavy grades
| T,r terminal facilities, additional sding'
| prd lew freight and passenger houses a
| Sioux City S2CO, 000, and doubt seriously II
| TIE expenditure In Sioux City OF 5000, 00(
| VIII piOvlde what Is essential for the proper
transaction Of business In a manner satlsfac
tory TO the public For engine houses
shops, side tracks, new station houses at va
rious points, new water stations and Other
| appur,enances, 100000; substitution oil
ircn for wooden bridges, Sl75,000; fencing
| Tie line including snow fences, 500, 900
| lallasiing and new steel rails, Sl25, 900; TO
| tal, Si,S6g,lO0. 10 this should be adde's
| Tie debt due from the Iowa Falls & SiOus
| City railroad at the expiration OF its lease Il
| lie Illinois Central Company, October lst
| Icing the arbiiia i0r's award as TO the value
| Of the bctternents made upon the Iowa Falls
4 Sioux City Company by the Illinois Cen
| tlai during tie the term OF the lease, which
is $242, coo. The amount Of money there.
fore 10 be provided to meet the obligation
| n,w due and TO improve this property and
| Tut il IN The condition which IL ought to be
and in which 1t must be, will be ~, lSi 900
a u. H.