The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1908-05-14

lIldllltl vi GOlIulCllllS DuSllltSS dlldlIS
of the company. The president then
appoints a manager for the railroad,
who is usually an expert in railraod
management, or ought TO be, and
this manager governs the whole bust
ness of the road.
Ii the original promoters Of the
road have money enough to build it,
they generally do so, if not they get
some competent civil engineer to
make a survey of the proposed line
Of road, prepare an estimate OF the
cost, and investigate it commercial
merits, or its chances for business,
make a written report Of all this mat
ter, and. then the manager, armed
with this information, hunts up some
wealthy person, corporation OF SIndi
cate with surplus funds to loan and
endeavors to obtain the funds noces-
Sary to build the road. This loan is
effected by selling bonds, which are
simply a mortgage ON the }~rosnectiN"
road, its rolling stock and earnings.
Usually five per cent interest Is 10
be paid for the money received rom
the investors. and unless the engi-
neers report shows that the proposed
road will pay operating expenses,
taxes and this interest on the bonds,
or mortgage, the investors will not
make the loan and the road is neyer
built. This fact alone accounts for
so many roads that never get be
youd organization period.
Very often investors who put up
the money to build the road require
a large amount of the stock to be
given them as Il bonus. in which case
they become joint owners with the
promoters.
This is the usual way of proceed
ING. but OF course there are other
plans frequently adopted, varying
somewhat from this. one OF the best
plans is to divide the authorized stock
into two kinds, common and prefer
red. the latter generally bearing div
idendS of seven per cent OF the sur
plus earrings. after the operating eN-
p~puses. taxes and interest ON the
bonds are provided for, This method
has been quite successfully employed
in |iuterurban roads, The preferred
stock being sold to farmers and mer-
chants interested in the building OF
the road. They are therefore stock
holders and point owners OF the ROAD.
This plan makes it necessary for
ItQt IOtdl people dIOllS Nv III ''f
in the towns reached by it, to buy
enough of the preferred stock TO
grade and bridge the road; thus es-
Publishing an equity or ownership
eo"al to about twenty-five per cent
o, ,he total cost. OF course the right
of way and depot grounds must be
given by the owners OF the lands
through which the road runs, with
this equity. or basis for security, in
~vestors will accept bonds and supply
funds to buy ties, rails and cars.
A great many %interurban roads are
built by this method; it is, in TACT,
the best plan to follow, but every
community embarking into an enter
Prise of this kind must nave expert
advise and engineering assistance
every step OF the way, or they VIII
be sure to 90 astray, waste their
money and probably lose the road
Nearly every transportation problem
likely to present itself causing an
@novance to travellers and shippers
may be solved, If the proper methods
are adopted.
The interurban railway is the key
10 the situation. Its history during
the few short years it has become Il
factor in transportation matters. tells
a story OF relief and benefit unsurpaS-
sed by any other single incident or
utility known to modern improve
ment and advancement.
The method of securing its help
in tightening the burdens and abol-
ishing the evils that have so long be
set the farmer in marketing his pro-
ducts. is 50 simple ana so easy that
any community may secure its ben
eits if they desire to do so.
Perhaps the farmer does not know,
unless he stops to think, that it is
through his efforts the enormous
wealth of this great nation is largely
created. Seed time and harvest
mark the epochs in our nations do
nestle economy that are watched and
waited for by the teeming millions
who go to make up this wonderful
country. The farmer himself is neV-
er so deeply concerned about the re-
suits of his harvest. as the man who
sits in the luxurious office and counts
his wealth by the millions. He watch
es every indication of beautious
spring. ripening summer and rlgor-
Gus winter far more closely than the
farmer does. and makes his calcu,
~lations accordingly. He is not, as
many think, the pampered son of
wealth who cares naught for his fell
bowman out in the fertile fields SOW
ing and reaping. gathering II har-
vesting 50 that the nations wealth
will be EXCHANGED. He takes his
chances on gaining a share OF this in
crease, it is true. but he is deeply
concerned about the methods by
which the farmer may send his pro-
duce to market. He is always ready
to invest his money in railroads, III
rolling stock. in everything that he
is convinced will speed the trans
portation of farm products TO market
and turn them into cash. His finger
is ON the demand for that produce
in other countries less fortunate than
this. he knows the law of supply II
demand better than any one else.
He is ready at all times to assist III
the building of more railroads when
they are needed, and they are no
type of railroads that ne is so ready
to help build as teh interurban road,