Mexico Missouri message., 1917-11-08
The Electric r. r.
To Be Abandoned
The Secretary OF The Company
Makes Statement That The En-
terprise Is A Failure.

sage Iue lOlloWluB interview.
The stockholders of our company
having decided in favor of a disso-
luton and abandonment of the cleo
tic railroad enterprise we deem it
just to the public to those who have
been associated with us in the past
and to ourselves to make the fol-
lowing statement and review of the
efforts in behalf of this neterprise.
1Ao first substantial aid given the
enterprise by the public was under
the plan presented by Burns G. Co.,
of Chicago, in 1909 and 1910, when
the people of Mexico and along the
line north and south contributed in
cash $51,373.35. At the same time
the directors of the enterprise con-
tributed $53,369.32. There had been
considerable sums invested by the
public and by stockholder 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 ]. S.
Brown and D. B. Guthrie bought in
the road and paid off the Fruin-
Bambrick and other liens at a cost
of $4,000. Mr.. Brown and Mr..
Guthrie afterward dropped out, los
ing another $4,000. In 1915, the
people of Mexico and Santa Fe and
viciaity donated another $4,000 for
the Santa Fe extension and the pres
ent stockholders for the said extern
sion and other improvements, con-
tributed $31, ,645, making their cash
investment in the road at the pres
ent time S6T,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 transactions.
We have now been operating the
road from Mexico to Santa Fe for
more than two years at loss. 1t
took a large part of the proceeds
from the material in the south end
of the road to pay the deficit in
operating expenses and to replace
worn-out equipment. There was no
balance with which to pay taxes,
interests or dividends. No stock
holder of the company nor officer
received any pay for his services,
except an occasional free ride on the
road, and no return on his invest
ment.
We see no prospect for improve
ment. While it is true that our in
come would greatly increase if we
had adequate and reliable power
equipment, but the cost of the equip
ment and the cost of fuel for pow
er are both now prohibitive. Our
experience has taught US clearly that
the only way to make the road self
sustaining is to extend it to Perry
and then operate it with the Keokuk
power, We are sure that with such
equipment industries would soon
develop along the line and it would
be permanent artery of commerce.
But we have not the capital with
which to do this, nor can we get it.
When this enterprise was first
started ten years ago, railroads were
prosperous and railroad securities,
even when they were capitalized for
twice their cost of construction, were
regarded as good investments. Now
they go begging in the financial
markets and are not wanted at any
price. At that time automobiles
were not thought of as competitors
by railroad men. Now they have
rendered short lines of little value
to the public and of no value as an
investment, and the end of their
development is not yet in sight.
The investment of S61,645 that
the stockholders now have in the
road is held by seven parties: The
Marshall Rust estate, w. w. Mundy,
j. A. Bolts, ]. d. Bates, T. C. Bolts,
M. w. Beamer, and w. W. Bolts.
We cannot afford to lose that sum
of money, We. are convinced also
that the road is not, under the pres
ent conditions, of sufficient public
utility to justify the expense of OPP
GRAFTON, maintenance and to pay in
terest on the investment. With the
amount of business that we have had
rates would have to be almost doub-
led and we are sure the people
would not pay such an increase
We are therefore forced to the con-
elusion that, unless the road should
be wanted as a part of a through
line from Hannibal to Mexico the
enterprise is failure and ought
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