Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-02-11
Ex. GOVERNOR 70 PROMOTE Ex.
TEhsIyE RAILROAD svsrEM
e HE WINS. '*.
DEPENDS ON OUTCOME OF
EFFORTS TO GET ATLANTIC ROAD
Line to se Extended 70 Sioux City
on North and 70 Omaha, 81. Joe and
Kansas c,ty-Fats Of Atlantic Line
to se Determined Within Ten Days
-othsr stats News. 4

Atlantic, Feb. 11.-That Sioux City
may become the northern terminal Of
a new, railroad depends. ON what is
brought forth in the next ten days by
the negotiations Of former Governor
Leslie NJ. Shaw TO get possession of the
fermer- built Atlantic Northern &
Southern railroad. Mr.. Shaw claims
to have the capital to take over the
system and redeem the $4,000 he has
already invested in forfeits. In case
his deal goes thru Shaw says he will
take personal charge of the system and
extend to st. Joseph on the south and
Sioux City on the north.
At the time Secretary Shaw. made
his entrance into the railroad field It
was reported he acted in conjunction
with the late Edwin Hawley, and that
the two men would develop tight"
little, system of local lines in western
Iowa. But Mr.. Hawley died and Gov
ernor Shaw, with $4,000 on deposit
with the court, could not withdraw his
money, nor could he secure the addi-
tional sum. about 100000. with which
the purchase. In an eff
fort to this end, Mr.. Shaw went among
his Wall street friends, and complete
.ly failed. Then he went to England,
France and Germany, but in each
country he failed to interest sufficient
capital for this purpose, and upon his
return to Iowa, the courts declared his
deposit forfeited and ordered the road
.resold unless bondholders came for
ward with SUFFICIENT funds with which
!, Al 1~doh<odnoSo
But the bondholders were, to man,
farmers Of the three counties in which
the, Atlantic North 4 South. line oper-
ated. The little railroad was built by
the farmers themselves as competing
line to Burlington and Rock island
systems. However. upon its compile
ton, about q year ago. there was 50
much floating" Indebtedness that the
railroad, which was about fifty-five
miles long, went into the hands OF
receiver and was sold at public auc-
ton, Governor Shaw being the pur-
chaser. The governor paid $4,000 in
cash. and was given several months IN
which to secure the balance, This ne
failed to do, and the road was ordered
resold. At the same time. Governor
Shaw insisted that he would be able
to secure the money II given sufficient
time. II he succeeds in doing this be-
fore the road is resold, he can obtain
possession Of the property. But If the
little lire Is sold to others Governor
shaw's $4,000 goes to the new buyers.
Within ten days the little road Is to
be again sold under the hammer. Shaw
les making 4 herculean effort to raise
the money, both to have his $4,000 as
we'll as to bid In the road again. In
company with high officials of the
Prudential Life Insurance Company.
he has Just been in Atlantic and vi
cinity. While here they made trip
over the railroad and spent consider
able time going over the country esti-
mating its resources and the amount
of freight which may reasonably be ex-
pected as traffic for the road. While
nothing official has been said to the
effect that the Prudential Life Com
pany will furnish the necessary cash to
save the road for Shaw, 1t is believed
that this will be done.
II the deal is contaminated. Mr.
Shaw will give his personal attention
to the property, which will be extend
ed to st. Joseph. Mo-, and Kansas City
on the south. and to Omaha and Sioux
City to the. north.