Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-03-16

an entirely friendly mission That
there might be a difference of opinion
as to the best methed of proceeding to
build this railroad, l am free to admit.
but it is neither fair nor gentleman
nor businesslike on the part of Mr.
Hart to call me CRATER" and ''ras-
caf' and other like epithets because
attempted to suggest a tentative plan
Which was not in exact accordance
with his ideas.
Ii it is practicable and possible to Sc
cure all of the money TO the extent of
$1,000, 600 to build this road from the
people living along its line, then / am
sure that the people of Marshalltown
would heartily endorse Mr.. Harris plan
of organizations and know that I
would. To invest the money dollar for
dollar in the stock of the company I'M
til we had money enough TO build and
equip our line without asking for loan
from anybody, would be as simple as
a, B, c. and would be an ideal plan of
financing the project. but when ! came
TO MarshalltoWn and to Charles City
at the request of some of the people
interested in this project, l was under
the impression that they hoped to bor-
row a large portion of the cost OF the
IOdu ltolit iiIC1lSy lOdIISIS al tilc SdSt
and from my experience in this line of
organization. / know that bonds
can not be sold in the eastern
bond market unless the plan of
1 organization conforms to the. terms OF
that market. which are briefly that
a per cent bond upon a new and I'M
! tried road, can not be sold at par.
! Under favorable circumstances. they
might be sold at approximately 81 per
cent, but in order to command even
this figure. a share of the future pros
pective profits, must go to the men who
invest the largest share of the cost Of
the road in the bonds. They are I'M
willing TO build the larger share of an
experimental line of railway for peo-
pie in a far distant state. even upon
first mortgage security without having
a share IN the legitimate speculation
on the roads future earnings. They ar
que that the bond holders money prac-
tically makes the road possible and
that while the people along the line
get the benefit of the road in addi-
ton to the profits upon their invest
ment, the bond holder who gets none
of these indirect benefits, should have
a share of the common stock earnings
as his speculative profit.
Because of these terms and condi-
tons in the eastern bond market
which neither myself nor any of the
people interested in this road can con-
troll, it would be necessary for our in
terurban company TO be capitalized in
excess of the actual money paid in by
stockholders, if we expect to sell OH
bonds in the regular railway bond
market. But if we all know what the
plan is before We pay in our money
and if the stockholders in the road
should decide to attempt the plan
which the bond market lays down for
US, there can be no graft" or "ras-
caiity'' about it.
Nor can it be anything less than
malicious to accuse a man of rascality
who proposes that our company re-
serve some capital stock in the treas
ury to be sold at some future date
should additional. money be needed. ir
the development Of the property. Few
men ever build even a house to live in
without finding al the end Of the road
need for small amount in excess OF
their original estimate.
1 am pleased to find in an editoria
published in the Charles City Daily