Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1905-03-29

posed line of the Rock River Traction
company, and have carefully investiga-
ted the resources of the cities and vii
lagos through which it will run and the
industries of the two terminals, to-
gether with the condition of the farm
ing country through which the road
will run. and there will be no question
but what the road will be paying
proposition and its earning capacity
from the inception viii be sufficient to
pay the interest on the bonds and leave
margin for dividends above expenses
which will equal that of any of the
many interurban lines have been call
ed upon TO examine. In fact. this is
one of the best propositions | have ever
been called on to examine"
The same engineer says in refer
ence to the earning capacity of the
road: I'm estimating the earnings of
the road have taken the average Of
number of interurban electric roads
from the year book of the Street Rail-
way Journal that were as near similar
in conditions under which they are
operated as will be the Rock River
Traction company's railroad, and made
general average of their mileage
earnings. applying it to this road. with
the following results:
Earnings 100000 a Year.
Earnings for GO miles of road, in
GLIDING the five miles through eonnec-
ton with the Tri-City Electric railway.
and the Mississippi River Traction
company at Moline. Davenport and
Rock Island, at $4,000 per mile-$30O,-
900.
This I would consider a most con-
sentative estimate of the earnings for
the first year. and would think 1t safe
20 say that the same will be greatly
increased the second and each succeed
ing year. this taking no account of any
mail contract that may be secured.
Taking this proposition into compari-
son with a number of electric inter
urban roads that are yielding big div
idends ON the stock after paying the
interest on the bonds and the opera
ting expenses, have no hesitancy in
saying that there are few roads in
Ohio. Indiana, Michigan or Illinois that
give promise of better business and
earnings than the present one of the
Rock River Traction company"
The booklet further states that con
tracts have been drawn, one of the
strongest American trust companies is
being selected as the depository of the
proceeds of the bond issue, through
which the money will be paid out on
vouchers of the engineer of the com
pany approved by the engineer repre-
senting the bondholders. 7eH rr
by the terms of the contract the
Rock River Traction company will do
its own construction and by this effect
saving to the stockholders of nearly
100000. Also the company retains
control of the management of the road
when built as only % per cent of the
: capital stock is trusted for the ben
eft of the bondholder"
| just One Condition. ''''
There is only one condition imposed,
and we quote from the proposition
itself: TN addition to a complete and
perfect right of way which must be
provided "a sufficient local financial in
terest mnst be created to serve as a
protection against unjust attacks BY
local grafters. shysters. and others, up.
on the outside funds invested. No
large capitalists will jeopardize their
Investments by placing them alone in
localities where there is not sufficient
home interest Joined with them to af.
ford mutual protection against invidi.
Gus and inequitable enactments which
amount to oppression of foreign capital
as distinguished from local invest.
ments. particularly from the action of
the city council of the cities and vii.
| lagos through which the road runs.
After careful consideration the mini.
mum amount of $4,000 of the capital
stock OF the corporation is equitably
distributed in the various cities and
villages will be sufficient protection for
this ,ssTHf0 Us fHtfsHlint off&@