Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1910-01-13
'FFIcIAL PAPER OF AUDUBON COUNTY
AND or THE TOWN OF AUDUBON
MORE INTERURBAN
RAILWAY TALK
BY THE RAILWAY PROMOTION AND
CONSTRUCTION COMPANY OF
DIES MONIES
Organized For The Purpose of diving
Assistance In Building and Finan-
cling New Interurban Lines


When the people of territory. or
along certain route, find that they
need rail service of some kind to get the
same returns for their labor, produce,
and capital invested in business as others
do that enjoy the use of these facilities
they will talk railroads. But How To
Get Railroads. That is the problem
for these people to solve who are not ac-
quainted even with the first move re-
quired in promoting a railroad project.
The following will indicate to the peo-
Pile interested in this subject the require
ments and the difficulties met with i'm
creating railroad service and will show
one way of getting a railroad built and
equipped.
Entertaining and agitating railroad
projects help to bring the matter to q
focus but does not build the road. 1t
takes special knowledge, experience and
ample capital to successfully promote.
finance, construct and equip any rail
road. Not every suggested line or pro-
iect if built, would pay interest ON the
investment-or even operating expenses
therefore, the promoter must find out
first what it will cost to build, equip,
operate and maintain your road and
What 1t Will Earn 1t takes time, ex-
perience, careful investigation, tedious
work and good Judgment to determine
these points and it requires money to
to perform all this work
Financing must precede the building
and equiping of any railroad A person
who would commence erecting build
ing without knowing where money to
pay for materials and labor is coming
from would he considered anything hut
reliable business man--if nothing
worse
The money'to pay for the construction
and equipment of IA railroad must be So
cured i'm advance. To arrange for finan-
cling road, required time, work expense
and skill remembering that these large
sums of money requires for the promot
ing, financing, construction and equiping
of your railroad will not produce any
revenue to meet the interest charge and
all the various overhead charges incur.
red during the period of promotion and
construction and possibly not for some
time thereafter and that these must IN
paid promptly.
In the past, Railway Promotion Com
panies have been able TO provide for the
interest on the investment accommodating
during the non productive time and Il
recover the overhead charges through
an ample issue of stock which could bt
used i'm lieu of cash, But under the ex
! listing laws of Iowa, stock of an lows
corporation can only be issued for cash
dollar for dollar; or for materials ant
labor furnished in the building of thu
road, the cash valne of which will b'
determined by the Executive Council O
| the State. Therefore, these charges AMI
required equity have to be met by 20,
by providing the Right of Way eithe
donated or paid for by stock of the Com
pany and by subscribing literally TO
your Company's stock, by getting fran
chise in incorporated towns and secur
ing business contracts, voting taxes, etc
1t is common knowledge that nobod,
will loan money to exceed 80 per cent o
the value of the security and in man.
/ cases the loan will be limited to 40 pc
cent thereof in bonding railroads in lows
And it is also known that commission
are almost always charged and must b.
paid by the borrower. 1t follows thel
that you must provide the necessar.
equity, such as is asked by the Lender
usually bond house, and securing tn
requisite cash amounts to pay all over
head charges. promoting and financing
expenses We assume that few OF yo
have ever had experience in this line O
business and that even il you were eS
perienced that You could not spare tn
time from your own business withou
great loss. We, therefore, modestly sug
gest to you that we have had consider
able experience in this line and offe
our services We can promote, bull
and equip railroads and interurban raj
ways. and turn the same over to you ]
running order, as your property for
/ reasonable cash compensation. In
route from Des Moines to Audubon tn
rural population adjacent is 1925 an
the city population is IS. 1879, making
7 total of 102, 124 The distance is "A mile
and the tributary, $50 square miles
The distance by way of the Rock Islam
is 101 miles, which is 33 miles more tina
an interurban line.
) A mere glance at the list of our officel
and stockholders will convince you tia
these men with the high standing the
enjoy i'm the business and social worl
are a guaranty of strictly honest bus
ness dealings.
We will more fully acquaint you wit