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

anime the property and report 10 the Board
OF Directors what expenditures We're neces-
saiy, In my Judgment, to place that line In
proper condition for the transaction of the
business of the public, and to enable II from
It's improved condition, to compete success
fully with rival lines. l had no idea at that
time that any question would be raised In
Iowa that would effect the revenues of the
Iowa roads. l did not dream, nor did the
Dubuque 4 Sioux City owners dream Of
the possibility OF such serious Ques-
ton facing MS us faces us to-day In
the proposed legislation Us TO railroad rates
and charges. In entire ignorance of what was
impending. l made estimates after care
full examination of the property and In view,
too, Of q familiarity with II for fifteen or
twenty years last past l found 1t required
an addition to the equipment OF ten locomo-
tyes, eight passenger cars, six baggage,
mail and express cars, four hundred freight
ears, involving an outlay Of SSii, 900. That
for reducing grades and practically con-
structing new line between Cedar Falls
and New Hartford, TO avoid the present
heavy and impractlcable grade, an expendi-
turc Of $500, 600 is necessary. That for new
station buildings at Dubuque and Waterloo,
and for additional shops at Dubuque and
Waterloo, and station houses, side tracks
and various appurtenances along the line,
$500, 600 more was required. That for the
substitution Of iron for wooden bridges and
Of stone masonry for wooden culverts, an
expenditure OF $500, 600 was necessary, there
being to- day, ON the Dubuque q Sioux City
road, but one span of iron bridge, and that lif-
teen or eighteen years old, light and OF am
Gent design.
1hQt for additional fences, including snow
fences and other various items too numerous
to mention, 500, 600 was lequlred. Forbal-
l;stlng the line Si5, 600 was needed making
Total, including the award OF the arbltra-
tors, TO which have already alluded, OF ST.
5l5, 500. This, gentlemen, is the sum esti-
mated as being necessary to spend upon las
miles of Iowa Ipad 20 put II in proper condl-
ton for the transaction of business and for
meeting the competition OF rival lines. Ii
that money were borrowed at five per cent
the interest charged wonld be over Sl25, 900
per year, in addition to that which now rests
upon the property. That which now rests
upon the property is all that 1t can
sustain. The small bonded debt of the Du-
buquc Il Sioux City Is a factor worth CON
sidering in connection with this subject. IL
Is not a heavily bonded road like many rail-
roads In this and other States. 1t Is bonded
to-day for $3.50, 600 of seven per cent bonds,
and $685. coo of five per cent bonds, being u
total Of less than 100000 of bonded debt
upon l4S miles of railroad IL we add to
that 81, 10000 necessary to be expended
npon the property as L have already ex-
planned, II would stand with bonded debt
Of about S3, 500 coo, bearing interest In the
main at five per cent. IL will be seen then
that the interest charge will be under those
circumstances in the vicinity of $500, 600 an
nually.
Ii may be said here that the stock OF this
corporation is entitled to only very low re-
turns to the owners. This might be true IL
ITS bonded debt represented the cost Of tho
property, but here the stock and bonds to-
geiher represent the cost of the prop
cI!y, and represent fairly, the cur
rent market value of the property
and il is just and equitable that
| the owners of the stock receive fair
| return upon their investment The stock
| stands at FIVE million dollars Nearly all of
| 1t was sold within the last six or eight
| months, at about eighty cents on the dollar,
and use that figure as representing the fair
market value of the stock of that company,
| thus making the five millions of stock stand
| to-day AT four millions In cash. Add To this
| the three and Il half millions, which l have
| already explained, of existing bonded debt
| and Of debt to be incurred to make this rold
| what il ought to be, and you have in round
| numbers $500, 900, representing l43 miles
| of railroad, or an average OF S32,a per
| mile. submit that this lij miles OF road,
| with the property which u possesses III Dn-
| buqre ana other towns through when IL
iuns, in view Of It's condition now and OF the
condition 1t viii be placed In wien the ex-
| penditures have estimated are made, could
| not be duplicaled--could not be put where
| II Is with the towns and business centers
| strung like beads upon ii, for the sum of ff-
| ty-two thousand dollars per mile.
Now this have no doubt VIII strike some
Of you gentlemen as very eXtraVagant
statement, and therefore want 10 respass
on your time minute or Two toeiaooratc an
idea IN this connection, ana that Is tiat the
actual cash cost OF ne road wlleh punt ths
actual cash cost OF constructing paraiiei
| Ire 10 the Dubuque oiouN 'ity to-nay
does not III any degree represent tne value
Of the Dubuque " Sioux CITY property.
II must be born in mind that line Of
railway in Iowa trayersing sparsely settled
country. operated for years under light
hafiic, operated for years at loss, operated
| for wears when money must perhaps be ad-
| yanced TO pay interest on bonds to keep the
| property cut of bankruptcy, is adding to its
first cost constantly 1t Is building up and
| developing commercial centers in the shape
| of towns and villages upon its line and the
| growth of these towns and villages, the
value of The tIade they command, are rep
| resented by say twenty or thirty years in
tercet added TO the FIRST cost OF the railway
laid there in the SOIL which still remains UNI
productive 10 the owners. A bare naked
| read placed to-day alongside of the Dubuque
| d Sioux City line would lie of no marketable
| value whatever. because the traffic could not
| eretain n n ,s mt n ouestion os IN the cost