Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1900-04-21
|HAS uI1L[ BACKING.
Division Engineer Of the D. 4 n. o.
Says That Railway Project is
Decidedly Dead.
No Money Behind the Venture, Ex-
cept the small Sums Already
Invested.
Company's Poor Management at the
Beginning Practically Killed
the Enterprise.

sSchreiner, one of the division engineersl
+ in charge of the survey made by the
Duluth & New Orleans railroad from
Usage to Nevada, stated Thursday
that in his opinion the enterprise was
dead. past hope of resurrection.
THE fact Isl, said Mr.. schreiner,
there Is no money behind the project.
The company has been unable to real
ize money on its bonds and all the ap-
parent financial backing it has had
was comparatively small sums adj
yaneed by credulous men who hoped
for the success of the venture more
than they repossd confidence in it,. 1t
was owing to ina bility to dispose of its
bonds in New York that it became
necessary for the company to permit
aid in the shape of taxes levied along
the lineto lapse. This occurred at Me-
vada and elsewhere along the line of
survey. The financial straits of the
company were disclosed a month ago,
when. pressed by myself and other ems
| ployes in the engineering corps, Mr..
| Wardall, to whom we had employed
Yourselves, was unable to pay us. i
Immediately wrote to President Aims
worth al Duluth, explaining to him the
situation as it existed on the line of the
Iowa survey, and in return received a
/ letter stating that the company had
4 been unable to dispose of it's bonds
\ largely because of the opposition of
capitalists Interested in the great east
and west trunk lines, who did not wish:
to see a north and south line built from
the lakes to the gulf because of the di-
version of traffic from Chicago, New
4 York and other seaboard cities to
4 southern ports. Mr. Ainsworth wrote
that unless money was realized from
sales of bonds by May the construc-
i ton of the proposed line would be
4 abandoned, at least for the present.
i The fact it the company had nothing to
4 hypothecate for money With which to
4 begin and continue construction other
than the roadbed. and that only after
the money had been advanced The
4 laws of Iowa limit the cost of construc-
4 ton to $4,000 per mile. and with this
4 statute confronting them the projectors
Iscould not initiate the stock or bonds, es-
sI3pecially as they had no financial re-
I8sources. Mr.. Wardall, notice, is re-
4 ported in the newspapers Is stating the
j of several millions OF dollars. and with
& the proceeds purchased So, 900 tons of
D rails. The president informs NJ. that
q not a dollar of bonds has been sold
1 and as between Mr.. Ainsworth and Mr.
have had of the latter. i prefer to place
the secretary.
q been made by the company when i,
awarded the contract for constructing
the road. This contract was basel
upon giving the contractors 10 per cent
& Of the cost, and as is apparent upon a
moments reflection. the greater thu
81 cost the better would be the result il
7, 14awler & Reid, of New York, with
d whom the agreement was made. Their
y the trust company selected to place he
bonds wanted 10 per cent additional
!, and Withal, after deducting the items
s mentioned and Including 10 per cen
more for surveys. recording deeds, lega
Il fees, right-of-way, etc, not more thar
ga IS cents on the dollar would be real.
+ Lied with which to grade and iron tn,
Il roadbed and equip it withholding stock
( The enterprise Was MIXED TO death i,
3 WALL street, and looking a I the projec
s in the light Of the experience hav,
had With the visible management,
$ would venture the assertion that il il
S destined not to materialize for som,
: time, tho it may be revived some tim,
: in the future and the road be built
. The company is without financial re
sources and Nevada is the only poin
along the line where any confidence Il
reposed in the claim that any portion
4 LOT lit Will be cons trlIct Ted ~.