The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1902-12-19
THE FEDERAL RAILROAD
VIM. T. COad Feels Sanguine Of Its
Success Since the Disposal of
Stock in Germany.

William 7. Coad, the promoter OF
the Federal Railroad, was in the
city Saturday on his way to Cham
berlain to confer with parties in
that city and west of the river with
reference to the construction of the
Federal Railroad. Mr.. Coad stated
that he was thoroughly satisfied
that the road would be a winner.
Concerning what Roadway had been
made in disposing Of stock he hand
ed The Republican editor the follow
ing clipping from the Rapid City
Journal, which explains the status
of the railroad enterprise at this
time:
William T. Coad, president Of the
Federal Railroad Company, has sue
ceeded in selling to a syndicate in
Berlin, Germany, SIS, 1000. 900 Of six
per cent perferred stock at par.
The proceeds derived from such stock
are to be used in paying, for ties,
steel rails and steel bridge across
the Missouri river, stations and
equipment of the line of railway to be
first built from at or near Oacoma to
Rapid City. during 1903. Other Ines
and extensions to be constructed
from time to time, until the Federal
in connection with the Chicago, Mil
waukee & St. Paul Railway is a
transcontinental line. The balance
Of the money necessary for the COM
plete success of this company is to be
raised from the sale of six per cent
preferred stock. 1t is a first-claSs and
gilt-edge investment and the bust
ness men OF South Dakota ought to
buy it literally. Practically every
person in this state has ~"hollered"
for an east and west line within the
state and now that such a line is
within the grasp of the people 70
South Dakota all should aic this
great enterprise. The people of
South Dakota will soon have an
opportunity to show how much they
desire an east and west line of rail
way within this state.
The Federal Railroad Company is
organized not to invade the territory
Of any other railroad company, but
to open to development and traffic "a
region west of the Missouri river
and the Black Hills in South Dakota
and Wyoming, in extent almost an
Clupl1Cs WulCll IS uOW WlCuOuU d
single mile of railroad. This region
is rich in deposits of gold copper,
lead and iron ores and coal, suone and
gypsum. In it are large forests OF
timber and millions of acres of graz
ing lands and of lands capable of
irrigation and cultivation. There
are large streams and an abundance
of water in the valleys through which
this railway line will be operated.
The local business developed and to
be developed will beyond doubt
render the enterprise a profitable one
independent of any through traffic.
When this line Of railroad is in
operation the distance over it with it's
connections from Black Hills points
to Chicago will be more than one
hundred and thirty miles shorter than
by any other route, and between the
Black Hills and eastern South Dakota
points more than 600 miles shorter.
German money was largely used in
constructing the Northern Pacific
and now money from Germany is to
help complete what will ultimately
be another trans. continental line
OF railway. The foreign capitalists
made large sums Of money out of
the Northern Pacific and will do
the same in the Federal.