Mexico weekly ledger., 1917-11-08
TO PERRY
MIGHT SUPERINTENDENT
Judge ". W. Bolts Secretary Of the
Mexico Investment & Construe-
ton Co. Makes Statement
CONDITIONS FULLY EXPLAINED
Unless il Becomes Part Of a Through
Line TO Hannibal il is a Failure
and should Be Ahandoned

LINT " d
and should Be Abandoned
Judge W. W. Bolts, Secretary Of
the Mexico Investment & Construe-
ton Co., owner and operators Of the
Mexico & Santa Fe electric line, made
a complete statement Friday concern
ing the enterprise and its position at
this time. The road cannot be made
A success according to their opinions,
unless it continue on to Perry anc
have Keokuk power. The statement
in full follows:
The stockholders Of u company
having decided in a favor of a dissolu-
ton and abandonment Of the electric
railroad enterprise, we deem il just
To the public. TO those who have been
associated with us in the past and to
ourselves to make the following state
ment and review of the efforts in be-
half of this enterprise.
The first substantial aid given the
enterprise by the public was under the
plan presented by Burns & Co., OF
Chicago, in 1909 and 1910 when the
people Of Mexico and along the line
north and south contributed in cash
s5l.37S. So. At the same time The
directors Of the enterprise contribut-
! ed S53,S69.32. There had been con-
siderable sums invested by the public
and by stockholders prior to that
time, but everything was lost in the
sale of the road to pay the Fruin
Bambrick judgment, in May, 1913.
The present stockholders and j. 5.
Brown and D. B. Guthrie bought in
! the road and paid off the Fruin-Bam-
brick and other liens at a cost of
fifty-five thousand dollars. Mr..
Brown and Mr.. Guthrie afterwards
dropped out, losing another ten thous-
and dollars. In 1915, the people OF
Mexico and Santa Fe and vicinity do
mated another ten thousand dollars
for the Santa Fe extension and the
present stockholders for the said ex-
tension and other improvements, con-
tributed S31, 645, making their cash
investment in the road at the present
time SCI, 645, besides a debt of about
twelve thousand dollars. This is in
addition to the fact that four of the
present stockholders were among the
heaviest losers in the earlier transae-
tons.
We have now been operating the
road from Mexico to Santa Fe for
more than two years at a loss. It
took a large part Of the proceeds
from the sale of the material in the
south end of the road to pay the de-
ficit in operating expenses and to re-
place worn out equipment. There was
no balance with which to pay taxes,
interest or dividends. No stock-hold-
err Of the company or officer receiv-
ed any pay for his services except ar
occasional free ride on the road ant
no return on his investment.
We see no prospect for improve
ment. While it is true that u in.
come would greatly increase if W. hat
adequate and reliable power equip
ment, but the cost of the equipment
and the cost of fuel for power ar,
both now prohibitive. Our experience
has taught us clearly that the Onl!
way to make the road self sustainini
is to extend it to Perry and operate
it with Keokuk power. We are sur,
that, with such equipment, industrie'
would sOon develop along the line ant
it would be a permanent artery o
commerce.
But we have not the capital witt
which to do this, nor can we get il
When this enterprise was first start
ed ten years ago, railroads we're pros
porous and railroad securities, evel
when they were capitalized for twic.
their cost of construction. were re
1 garded as good investments. Nov
they go begging in the finaneia
markets and are not wanted at an,
price. At that time automobiles werr
, not thought Of as competitors b,
railroad men. Now they have render
ed short lines of little value TO tn
public and Of no value as an invest
ment, and the end of their develop
ment is not yet in sight.
Z The investment of SCI ,G45 that tn
L
0 stockholders now have in the road !
\ held by seven parties: The Marshal
Rust Estate, W. w. Mundy, j. A
S Bolts, J. d. Bates, T. c. Bolts, NJ
y W. Beamer and W. W. Bolts. W
{ cannot afford to lose that sum of mon
e ey. We are convinced also that tn
road is not, under present condition.
of sufficient public utility to justif
the expense of operation, mainten
ance and to pay interest on the invest
ment. With the amount of bushes
that we have had, rates would have t
be almost doubled and we are sur
the people would not pay such an in
crease.
> We are therefore forced to the con
c%lusion, that, unless the road shout
be wanted as a part of a through lin
from Hannibal to Mexico, that the er
terprise is a failure and ought to b
abandoned.
Earl Luckie Married