Free trader-journal. (Ottawa, Ill.) 1916-1920, 1917-08-04
PLAN FOR BUILDING
OTTAWA MENDOZA
LINE TOLD FARMERS
PRESIDENT GRlGGS ADDRESSES
HALF A HUNDRED RESIDENTS
OF PRAIRIE CENTER ON LA
SALE COUNTY ELECTRIC.

A well attended meeting Of farmers
interested in the building of the La
Sale County Electric Railroad was
held in the school house in Prairie
Center last evening
About fifty of the leading farmers
along the route of the proposed road
were on hand to listen to splendid
address by President Clarence Griggs
of the Chamber OF Commerce, who
cleraly and c0ncisely outlined q plan
upon which the road might be built.
Many of the present bond holders
showed an inclination to proceed with
the work, and after Mr. Griggs had
completed his address and the meeting
came to a close the greater part of
the investors left with an entirely diff
ferent feeling and believed that with
Il new deal the road could be built.
Mr. Griggs in part said as follows:
The capital stock is $500. 900. Ii
is proposed to issue 100000 of first
mortgage bonds to be used in part
payment to the contractor for the
building Of the road and 1915 900 see
ond mortgage bonds, to be used in set
tlement Of existing bondholders and
creditors,
"The contractor will receive $204..
900 of the stock in part payment of
his contract which leaves $l9G,000 of
stock in the treasury, $4,000 to be
disposed Of
About $4,000 of stock has been is
sued. Those who receive their stock
as a bonus must return the same and
those who paid par value for their
stock will receive like amount out of
the $4,000 issue
About $4,000 of bonds have been
issued These must be exchanged for
the second mortgage bonds dollar for
dollar
about $4,000 of floating debt OK
list. These creditors must accept part
of the second mortgage bond issue in
'ayment of their indebtedness. A
fund of S145,000 cash must be raised.
The most feasible way is to assess the
lands directly benefited by the road.
The two sections Immediately joining
the road should be assessed at $3.50
per acre The sections one mile, at
81 and two miles at $3.50 per acre. AT
least this should be he ratio for rails
ing the $4,000 Contributors to re
ceiye certain amount of stocks and
bonds.
"rhis sum should be deposited in
the Ottawa banks with the provisions
that it should not be paid over to the
contractor until the road is actually
in operation and free and clear of all
liens and encumbrances, excepting the
first and second bond issues, and fur
Their, not until contract has been made
for the furnishing of electricity to
supply power to operate the road,
aud further that equipment be ON the
track to the extent Of at least four
and one express ear.
Contract has been negotiated which
in all probability can be carried thru,
under which the contractor will have
turned over to him all present right of
way secured, 100000 of first mortgage
bonds, 100000 of the capital stock
md $4,000 cash.
"'fhe entire capital stock must be
turned over to the Chamber of Com
merce of Ottawa, which viii effect
organization, elect officers
and directors, make contracts, issue
bonds and have exclusive control Vt
the issue of stocks and bonds, and the
making of contracts, and in general
have absolute control Of the road until
IT is completed at which time the con
tractor viii receive his stock and the
Sl9G,0 of stock viii be turned as fast
as necessary to satisfy existing stock
holders and the balance will remain
in the treasury,
"A mass OF detail remains TO be
worked out but if the general plan is
accepted, the Chamber of Commerce
will undertake to work out the details
without charge, other than actual cX-
penses,'
Mr.. Griggs asked those present to in
dlcate their willingness to have the
Chamber of Commerce take up the
matter and see ii some solution could
49, -