VALUE -A.TST3D SECURITY OOP
FIRST MORTGAGE
P FFICERS
/
ok the
CENTRAL RAILROAD COMPANY OF IOWA.
CHARLES C. OILMAN, President.
Hon. W. H. SEEVERS, Vice-President.
W. B. SHATTUCK, Treasurer.
CHARLES COLLINS, Secretary.
A. L. HATCH, Transfer Agent.
pii^ECTORS.
W. A. WHEELOCK, .... President Central National Bank, New York.
J. J. DONALDSON, .... President Bank of North America, New York
W. B. SHATTUCK, New York.
JOHN S. OILMAN, President Second National Bank, Baltimore.
THOMAS KENSETT, . Baltimore.
HORACE ABBOTT, ..... President Abbott Iron Works, Baltimore.
F. W. II. SHEFFIELD, . President Merchants' National Bank, Dubuque, Iowa.
O. M. WOODBURY, . . . President First National Bank, Marshalltown, Iowa.
Hon. J, B. ORINNELL, .... President First National Bank, Grinncll, Iowa.
Hon. W. II. SEEVERS, ; Oskaloosa, Iowa.
CHARLES C. OILMAN, Eldora. Iowa.
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AND ITS CONNECTIONS.
KctJ Mayo"lr.Sciii6.&oiU.1il»j(9t»MMw,aify
THE
CENTRAL RAILROAD OF IOWA,
TWO HUNDRED AND FORTY MILES IN LENGTH,
FORMING, WITH ITS CONNECTIONS, A DIRECT AND UNBROKEN LINE
FROM ST. LOUIS TO ST. PAUL.
VALUE AND SECURITY
OF ITS
FIRST MORTGAGE 7 PER CENT. GOLD BONDS.
Office m New Y o be: No. 32 PINE STREET.
^ROWN jÍEWITT, ^RINTEF^S, JLo. 3 O Jm^ANKFOF^T JStF^EET.
SEPTEMBER 15, 1869.
be Utatc of líotoa.
Iowa is rapidly becoming one of the first agricultural states in
the Union. Bounded on the east by the Mississippi river and
on the west by the Missouri, it is the geographical center of that
never-ending wonder of productive wealth, we once called the Great
West. It has no debt, and the assessed value of its property is
nearly three hundred million dollars.
Iowa has some decided advantages over her sister states. The
surface of her territory is not a succession of vast levels, where the
streams are sluggish and marshes numerous, but is beautifully un¬
dulating or rolling. This secures a more thorough drainage, so
that while the Illinois crops may be nearly destroyed by standing
water in wet seasons, those of Towa are exempt from such disasters.
The atmosphere is bracing and healthy, and the country generally is
free from the malarious diseases which are so common to many of
the newer states. This salubrity of climate lies at the foundation
of her rapid prosperity.
Iowa contains fifty-five thousand and forty-five (55,045) square
miles, or over thirty-five million two hundred and twenty-eight thou¬
sand (35,228,800) acres, an area exceeding that of New York or
Pennsylvania ; but the relative area of these states furnishes no cri¬
terion of their relative agricultural value. The hard, rocky soils of
the East are devoted to pasturage, or give but small returns for long
and patient labor. The crops must first be put on, in the shape of
fertilizers, before they can be taken off, in grain and fruits.» The
entire soil of Iowa is a black vegetable mould, from one to four feet
in depth, and careful observation shows that there is not one acre in
ten which is not now ready for the plow. There is almost literally
no waste land. The streams are only fringed with timber, and the
rich undulations of the magnificent prairies extend in every direc¬
tion as far as the eye can reach. Crops are grown without manures,
and all the cereals, vegetables and fruits adapted to the temperate
zone are most successfully cultivated. It is not surprising that,
with such a climate and such a soil, Iowa has already become pow-
4
eríul and prospérons ; but it is yet in the early stages of its devel¬
opment.
POPULATION AND PRODUCTION.
The population in 1850 was ...... 192,214
" 1800 " 074,699
" " " 1869 " (estimated by Gov, Merrill,) . 1,100,000
Production lias increased in a corresponding ratio. Taking corn,
wheat, and oats as the leading staples, we find the following returns
in the U. S. Census Reports for 1850 and 18G0 :
1850. I860.
Bushels of Corn, .... 8,656,799 42,410,686
" Wheat, . . . 1,530,581 8,449,403
" Oats, 1,524,345 5,887,645
The Iowa State Census for 1867, (the latest published,) shows
the following production of the same staples for that year :
Corn, bushels, ....... 56,928,938
Wheat, " 14,035,520
Oats, " 15,861,494
No. of acres cultivated to produce above, . . . 3,554,017
" " in other crops, ..... 266,364
" " in tame grasses, ..... 497,460
Total No. of acres of land under cultivation in 1867, . 4,317,841
As Iowa contains over 35,000,000 acres, if we allow one-third
for waste, timber, and pasturage, we still have over 20,000,000 acres
remaining, which, when cultivated, will produce four or five times
the large crops of 1867.
Lands in Iowa are put under cultivation as railroad facilities for
reaching them are secured. The vicinity of rivers was first settled,
and more recently, the line of population and production has rather
followed than gone in advance of the railroads. Some hardy pio¬
neers went long distances into the interior to secure the choicest
locations, and were willing to wait the development of the country;
but the most active and enterprising could not afford to live beyond
convenient access to market. The railroads made the country, and
the country is now making a handsome profit for the railroads,
which will increase in a rapid ratio with increased population and.
consequent production.
íhc (Central JUitatd of fowju
jJl RECTORS OF
W. A. WHEELOCK ..President Central National Bank, New York.
J. J. DONALDSON,. President Bank of North America, New York.
W. B. SHATTUCK,.... ..New York.
JOHN S. G1LMAN, President Second National Bank, Baltimore.
THOMAS KENSETT, Baltimore.
HORACE ABBOTT, President Abtott Iron Works, Baltimore.
THE
F
p o
MFANY.
..President Merchants' National Bank, D-jtnqao,
W. H. SHEFFIELD,.
Iowa.
G. M. WOODBURY,..President First National Bank, Marahalitown, Iowa.
Hon. J. B. G RINN ELL,...President First National Bank, Grinncll, Iowa.
Hon. W. H. SEEVERS, Oska'ocra, Iowa.
CHARLES C. GILMAN, Eldora, Iowa.
Dear Sir: Your attention is respectlully called to the folloiving statements of facts concerning Iowa and the adjoining
Northwestern States, and the bearing of such facts upon the business prospects of the Central Railroad of Iowa, whose First
Mortgage Bonds we have for sale :
Iowa contains 55,045 square miles, or35,228,S00 acres, an area exceeding that of New York or Pennsylvania, or of Maine,
New Hampshire, Massachusetts, and Rhode Island combined. Bounded upon the east and west by the Mississippi and the Missouri,
it is in the centre of the great agricultural West ; and its surface is so uniformly undulating as to afford the finest farming lands
in the world, without the drawbacks of swamps, marshes, and consequent malarious diseases, which mark some of the other West¬
ern States. There is almost absolutely no waste land, it being estimated by competent judges that there is not one acre in ten
which is not in condition for the plow. The soil is a rich, black mould, from one to four i'cet in depth, and crops arc raised in pro¬
fusion, without other fertilizers than the native soil supplies.
These advantages have caused a growth of population in the State from 192,000 in 1850 to 1,100,000 in 1869. Meanwhile,
the production of wheat, corn, and oats (the great staples of the West) increased from 11,711,725 bushels in 1850 to 87,4125,932 in
1867, the latest year for which we have full returns.
This production, large as it is, is only an indication of what the State may produce, for we find that tut 4,317,841 acres, or
a little more than one ninth of its area, had been brought, under cultivation to produce these crops. To rapidly settle the remainder
of the State, and add its vast production to the national wealth, but one thing is required, viz., increased railroad facilities, open¬
ing rapid and constant communication with eastern, southern, and foreign markets. Five railroad lines arc now built, or in pro¬
cess of construction, across the State, from east to west. These are: the Burlington and Missouri River, from Burlington to the
Missouri; the Chicago, Rock Island and Pacific, from Davenport to Council Bluffs; the Chicago and Northwestern, from Clinton
to Council Bluffs ; the Dubuque and Sioux City, connecting those two cities ; and the McGregor and Sioux City, these being its
terminal points. It is a singular fact that there is not a north and south line in the whole three hundred and more miles between
the great rivers upon the cast and west. The Avant of such a line is sorely felt, not only by the farmers Avho need the competition
In grain markets, Avhich they can never get so long as all their railroads run to, and are in the interest of, the monopolizing buyers
and shippers of the Michigan lakeports, but by the business communities of States to the north and south, and by the entire coun¬
try, which is interested in the rapid development ot the resources of the Northwest. This aviII be best understood by a brief refer¬
ence to certain facts which have become strikingly apparent to all who have investigated the subject: Iowa is almost wholly destitute
of timber. The narrow fringes upon the borders of lier streams furnish sufficient material neither for fuel, fencing, nor building.
Southern Minnesota is in the same condition; but Southern Iowa contains very extensive beds of excellent coal, while Northern
Minnesota is lamed for its vast forests and its lumber marts. Northern Iowa and Southern Minnesota need, both for domestic use
and for the railroads of that region, the coal of Southern Iowa, Avhich, in turn, has use for great quantities of lumber. A railroad
which can give direct and cheap interchange of these commodities, will have a steady and profitable traffic therefrom. Again, the
question of grain transportation to markets, by way ot St. Louis and the Lower Mississippi, is' being energetically discussed by
those who see the great advantage which such a route—available summer and winter—must have over that by lakes and canals,
which is closed by ice lor five months in the year. Under present carrying facilities, the wheat grower in Iowa and Minnesota
must do his harvesting, threshing, and shipping so hurriedly in the brief time that intervenes between the ripening of his harvest
and the close of navigation, that he suffers serious loss by waste, while, as he has but one "route to market, lie is at the mercy of
the managers of that route.
To supply the great want here indicated for a north and south road through Central Iowa, the "Central Railroad Com¬
pany of Iowa" was incorporated, with a view to the building of a railroad 240 miles in length, from the southern to the northern
boundary of the State, connecting, at the former point, with the North Missouri Railroad, now in operation 230 miles from St.
Louis, and at the other extremity with the Milwaukee and St. Paul Railroad, now running from St. Paul to Austin, within 12
miles of the Iowa state line—a distance ol 105 miles.
At the solicitation of parties interested in the above railroad line, a number of Eastern gentlemen oí large business experi¬
ence visited Iowa in July last, and made a careful examination of the country along the line, and of the affairs of the Company.
Every facility was furnished for this examination, and the result was very satisfactory.
It was found—
1st. That the country along the line (of the Central Iowa) was admittted to be the garden even of that magnificent State.
2d. That it was the most thickly settled agricultural portion of the State, and that while its production-was already suf¬
ficient to support a railroad, it would be doubled and trebled by the construction of such a line.
3d. That this railroad would have a great advantage over most others in carrying coal from where it is abundant iu the
southern part of the State to Northern Iowa and Minnesota, where none is to he found, and in securing return freights of lumber,
for which the demand is very great.
4th. That it was the only link wanting to connect St. Louis and St. Paul, in almost a direct line, 147 miles shorter than
by any other route.
5th. That 17 miles of the road, from Aekley to Eidora, had been running several months, and that the net earnings, over
operating expenses, were more than the interest liabilities on that length of road; that 28 miles more would be completed this
Fall ; that about 00 miles more were graded, and that the people along the line had subscribed liberally to the Company's stock.
6th. That as the road has low grades and runs through the great coal fields, its fuel costs little, and its operating ex¬
penses are light.
7t,h. That Iowa would probably be the richest of all the Western States in agricultural productions, and that most oí
these products, unlike those of the Eastern States, must he carried away to a market, makiug large freights for railroads.
8tli. That so far as could be learned, after diligent enquiries, there was not a single completed railroad in Iowa, Illinois,
Wisconsin, or Minnesota, that was not only earning the interest on its securities, but a good dividend on its stock,
9th. That then was no new railroad line in the West that promised so large a business or so safe a security.
10th. That bankers and other leading men of the State were identified with the enterprise.
11th. That nearly a million and a half of dollars had already been expended on the work.
After this examination, several bankers and other gentlemen of well-known high character and wealth interested them¬
selves in the Company, and became its directors. The Company is now issuing and offering ior sale its First Mortgage Bonds.
These Bonds are issued only at the rate of $16,000 per mile ; they have thirty years to run, and bear Seven per Cent. Gold In¬
terest, Free of Government Tax, iu teres t payable in New York on tbe 15th of January and July. Over $400,000 have already
been taken by the officers and others interested in the work. The Bonds are secured by a Deed of Trust to the Farmers' Loan
and Trust Company, in the City of New York, and by its provisions tbe money can be used only for the completion of the work. A
favorable contract lias been made for the completion of the line, by which the contractors lake a part of the cost in the stock of
6
the C ompany. According to the Engineer's estimates, the additional stock subscriptions already secured, and the proceeds oft lie
First Mortgage Bonds, will furnish ample means to finish a strictly first-elass road.
While the First Mortgages upon our railroads are admitted to be the very highest class of securities, those of the Central
of Iowa have some special advantages over other new or projected lines. The 45 miles now just completed connect two other im-
portant roads, and the next 26 miles gives another valuable connection. No one familiar with the railroad business of the West
can deny that the net earnings of these completed divisions will be more than ample for their interest liabilities. The Superintend¬
ent of the road reports, upon the 18th of October, that the present earnings upon the portion of the road which is open for
business, are at the rate of more than $4,200 per mile, per annum, which, after deducting operating expenses, leaves a handsome
surplus over the interest upon the bonds. On all bonds issued on the extension of the road beyond this 45 miles, the interest for
one year (the time expected to be occupied in construction) is specially reserved in the hands of the Trustee. It should be remembered
that this road, unlike many others, is not built through a wilderness, but tu rough a region of country already well settled,
which will give to every mile immediate and profitable traffic.
The mortgage which secures the bonds covers the entire franchises, track, depots, stations, machine-shops, equipment of
the road, and net income, which it now possesses or may acquire. The bonds are for the respective amounts of One Thousand
Dollars and Five Hundred Dollars each. They have semi-annual coupons attached, but may be registered at the option of the pur¬
chaser.
These bonds are now offered for sale at 95 and accrued interest at the rate o£ seven per cent, in currency from July 15th.
We can recommend these bonds with entire confidence in their safety and profit. At the present rate of premium upon gold,
they pay nearly 10 per cent, upon the investment. Exchanges of government bonds may be made for these at a handsome present
profit, beside securing 7 per cent, gold interest, in place of 6. With Government Sixes at 20 per cent, premium, the holders of
$10,000 in such bonds may exchange them for Central Iowa's at 95, at an immediate profit of $2,500, and then realize a differ¬
ence in annual income of $260.01 in gold.
A Pamphlet, containing fuller information concerning this railroad line, may be had upon application to
Tours Respectfully,
Agent for Central R. R. of I. Bonds.
5
§
estent
An occasional Hestern railroad may have been built, which at
first disappointed the expectations of its projectors ; but as the re¬
gion about and beyond it became settled, its business has almost
invariably become profitable. The question is sometimes asked,
"How can the West sustain so many railroad lines?" The answer
is plain. The agricultural products of the Eastern States are not
sufficient for the support of their own inhabitants. On the average,
the country not only has nothing to spare for the cities, but is itself
a large buyer of western products. Western corn as wrell as western
Hour and western beef and pork, are for sale in most of the New
England towns. Oil the other hand, nearly all the agricultural
products of the West are for export to eastern, southern, or foreign
markets. The farmer who raises a thousand bushels of wheat re¬
quires but a tenth of it for domestic use, and the remainder is freight
for the nearest railroad.
Let the spectator stand upon any elevated position in a set¬
tled portion of Iowa, and see the immense oceans of rustling corn
and waving grain, which have no limit but the distant horizon, and
he will cease to wonder where the business for western railroads
comes from. Such immense crops, which never could have been
sown without the machine-planter, and never can be gathered with¬
out the machine-reaper, must all be carried away, and will load rail¬
road trains for months to their utmost capacity.* It is a significant
fact that large stocks of wheat and corn have repeatedly been known
to remain on storage from four to six weeks, at stations upon Iowa
roads, waiting their turn for movement toward distant markets.
* Note.—It is a mistake to suppose that the Western States have more miles of railroads
than the Eastern. The States having more than 1000 miles of railroad on the first of January,
1869, were these :
MILES.
MILES.
. 1,354
. 1,464
. 1,436
. 1,235
. 1,200
. 1,047
. 1,076
Pennsylvania.,
Illinois
Ohio
New York
Indiana
Iowa
Georgia
Massachusetts
4,398 Missouri..
3,440 Virginia .
3,398 Tennessee
3,829 Wisconsin
2,600 Michigan.
1,523 North Carolina
1,575 South Carolina
1,425
6
A large and most profitable part of the business of Iowa as well
as many other western railroads, is derived from lumber and coal.
Iowa is a magnificent state, rich in an inexhaustible soil, but it is
almost destitute of timber, except a narrow border upon the margins
of its streams. Even where this timber is to be found, its growth
is seldom large, and it is not sufficient for fencing and fuel. Settlers
frequently haul their firewood many miles, and herd their cattle, on
account of the great cost of making fences, wffiere there is no con¬
venient railroad station for obtaining fencing materials. Therefore,
the distribution of coal and lumber, both very heavy and indispen¬
sable articles of consumption, is one of the chief sources of income
for our western roads. An agricultural people, and fewer large cities
and towns, may give them less passenger travel than eastern lines,
but their local freighting business is vastly greater, and the passen¬
ger traffic is increasing in the same rapid ratio as the population of
the surrounding country. As none of the Iowa railroads have been
completed two years, it is impossible to present a comparative state¬
ment of their yearly earnings ; but a few examples from Illinois
roads will illustrate the steadily-increasing value of this class of
property and its securities in the West:
The Chicago & Rock Island earned per mile, in 1862-63, $6,695 ; in 1867-8, $10,475
The Illinois Central " " in 1863, $4,873 ; in 1868, $9,615
Chicago, Alton & St. Louis " " in 1863, $9,199; in 1868, $12,251
Chicago & N, W,, (part est.,) " " in 1304-5, $8,060; in 1868-9, $13,163
It may be said, that there are but two completed railroad lines
in Iowa, viz., the one from Clinton to Omaha, 354 miles, now ope¬
rated by the Chicago & Northwestern, on which the earnings last
year were $9,648 per mile, and the Iowa Division of the Chicago,
Kock Island & Pacific, running from Davenport to Omaha, which
was not finished until the present year.
The Dubuque & Sioux City road was completed in 1868 to Iowa
Falls, 143 miles, and earned about $7,000 per mile. It is expected
that it will be finished to the Missouri river this year.
The following named roads are in progress of construction, and
their respective earnings, as reported last year, were as follows :
McGregor Western, . . 85 miles, . . $6,000 per mile.
Des Moines Valley, . . 162 " . 4,500 "
Burlington & Missouri, . . 180 " . . 4,675 "
The following roads are now building: The Iowa Falls & Sioux
City, Cedar Falls & Minnesota, and McGregor & Sionx City.
7
The figures already given are sufficient to show that the earn¬
ings of the Iowa railroads will increase with the development of the
country, until, within a few years, they must reach an amount equal
to those in Illinois. Even now, they are ample for all their interest
liabilities, and those completed are paying good dividends to their
stockholders. The present population of Iowa is about two-thirds
that of Illinois in 1860, before the development of that State by
railroads, while its production, in 1868, of wheat and oats, exceeded
that of the latter state in 1860. Under the stimulus of railroad ex¬
tension, the population and production of Illinois have increased with
wonderful rapidity, and this development has, in turn, given such
profitable employment to her railroads as is indicated in the above
table of progressive earnings. In salubrity of climate and fertility
of soil, Iowa even exceeds her older sister state, and nothing but
adequate railroad facilities are wanting to make the comparison
even more decidedly in her favor. "We give below the area of Ohio?
Indiana, Illinois, and Iowa, and the proportionate railroad mileage
of each, showing that there is ample room for the profitable construc¬
tion of railroads in Iowa.
state.
ahea, sq. miles.
no. op sq. miles for
each mile of r. r.
Ohio, ,
Indiana, ....
Illinois, .....
Iowa, .....
39,964
33,809
55,410
55,045
11.76
13
16.11
39.14
Note.—From Mr. Poor's Railroad Manual, which is accepted as the highest au¬
thority, we learn that the average earnings of the railroads of this country in 1867
were as follows :
Roads of Massachusetts, average
" New York "
" Pennsylvania u
" Illinois "
" whole country "
■ ■ ■
■ • •
• • •
• • •
• t •
$12,927 per mile.
17,300
12,600 "
10,000 "
10,000 "
At an average estimated cost of $44,000 per mile, the earnings of railroads through
the country equalled nearly 25 per cent, of cost. In Massachusetts, the earnings
were 27.13 per cent, of cost ; in New York, 28 per cent.; in Pennsylvania, 22 per cent.
The following are examples of a high ratio of earnings :
The Terre Haute & Indianapolis Railroad earned 57.2 per cent, of cost.
The Lake Shore Railroad earned more than 50 percent, of cost.
The New York Central Railroad earned 36 per cent, of cost, and 33 per cent, of its
capital.
8
As the repairs and operating expenses average about 60 per cent,
of the gross earnings, the remainder is applicable to the payment
of interest on bonded debt and dividends upon stock. It could
easily be shown that, as a class, railroad investments have been more
productive than any other department of business enterprise. The
first mortgage bonds of almost every western railroad now take the
highest rank as a safe security, while the stock of all the leading
lines is at a high premium. The interest upon their funded debt is
amply provided for, and their dividends upon stock average about
ten per cent. The following table shows the average earnings of all
the completed railroads in Illinois, Minnesota, and Iowa, as taken
from Poor's Railroad Manual for 1869 :
ROAD.
a
<
W
I*
m
O
% .
S H
« s
m
m
w H
* 3
° 5
w S
H ^
H
H
« .
Í oo
W
o !
o
H
m
jx>
o ^
H
CQ
»
*
« Q
M ^
S Í a
a o A
H f
te O
H
a
Illinois Central, .
Chicago & Northwestern, .
C hieago & Alton,
Chicago, Rock Island & Pacific,
Chicago, Burlington & Quincy,
Chicago & Milwaukee,
Milwaukee & St. Paul, .
1868
1867-68
1868
1867-68
1867-68
1867-68
1868
707
1153
368
454
400
85
830
9,615
10,937
12,251
10,475
15,386
12,677
7,888
$25,
29,
lb
19,
13,
20,
29,
700
862
308
521
721
298
881
1301-159
584-971
120-1584
85,1-105"
124-1531
#
138
m
153
114|
1944
* "
80
5 per cent.
5 "
5 u
5 "
15 "
*
14
scrip.
♦ Leased, see Chicago and Northwestern.
9
P* feutrai |UtiIr0ab öf ||otoa.
We hare alluded to the railroad system of the country and of the
West in a general way, hut we now come to the Central Railroad
of Iowa.
Nearly all the Iowa railroads now building run east and west,
and the traveler wishing to go from any part of Northern or South¬
ern Iowa in an opposite north or south direction, is compelled
to go across the country by stage, or to make a long detour into
Illinois, and thence over the north and south roads of that state, to
reach an Iowa east and west line.* A glance at the map will show
the absolute necessity for at least one central railroad line to bisect
a state that is 350 miles long from east to west—that has now a
population of over one million, and which will soon have two or
three millions.
The Central Railroad Company of Iowa is incorporated under
the general railroad law of that state, with ample power to construct
a railroad from its southern to its northern boundary. The Com¬
pany is a consolidation of the Iowa Central and the Iowa River
companies, which have been united to make a single through line
from St. Louis to St. Paul. These companies have been in existence
several years, and have already expended nearly a million and a half of
dollars. They have transferred, by deed, to the new Company, the
45 miles of road already finished, and all grading and other work in
progress, receiving an even exchange of securities in full pay¬
ment. This through line is formed by a connection with the
North Missouri Railroad, now finished to the southern boundary of
the state—230 miles—and with the St. Paul & Milwaukee, now
finished within 12 miles of tho northern boundary—105 miles.
* The distance from Bloomfield, in Southern Iowa, to Marshalltown, is about 80
miles ; but a party of travelers recently went 510 miles around through Illinois to
accomplish this distance by rail.
10
The situation of the line will be best understood by the follow¬
ing table of distances :
From St. Louis to Iowa State Line, . . 230 miles, in operation.
" State Line to Oskaloosa, . . 60 " graded.
Oskaloosa to Marslialltown,
Marslialltown to Ackley,
Ackley to Minnesota Line,
Minnesota Line to Austin,
Austin to St. Paul,
Total distance,
58 "
45 " in operation.
72 "
12 "
105 " in operation.
582 miles.
Of this distance, 380 miles are in operation, and but 130 miles
remain to be graded.
By the west line (see map) from St. Paul to Mankato, the St.
Paul & Sioux City Bailroad Company propose to complete a road
to the north line of Iowa, whenever the Central Company shall
think it proper to extend a branch in that direction. The Central
Company of Iowa, however, will first complete the 118 miles now in
progress from the Missouri State Line to Marshalltown. As but 58
miles remain to be graded, and a large force is at work, there is no
doubt that this will be done in season to move next year's crops.
By using 40 miles of the Dubuque & Sioux City road, this will
at once make the railroad connection of St. louis with
St. Paxil complete, and accommodate the through travel between
those two large cities, making the distance 626 miles, instead of 729
miles which it is now necessary to travel from one city to the other
by rail. The direct through connection of 582 miles may be made
at the same time, and certainly within a few months thereafter.
11
/
oo
business of i^c |laaïr.
We have now to consider the business prospects of the line.
The local traffic of all railroads is well known to be by far the
most important and productive, and the supply is as unceasing as
the daily wants of the community. Col. Hammond, now Superin¬
tendent of the Union Pacific, but formerly of the Chicago, Burling¬
ton & Quincy Railroad, in his report to that Company in 1860,
stated :
" Our chief and main dependence for success is and must he in the local business
of our road The agricultural resources of the country along the line are
large, and have not been exaggerated. They will, doubtless, through any term oí
years, afford us a remunerative business."
The correctness of his opinion is demonstrated in the steadily
increasing earnings of that road, which have now reached $16,000
per mile per annum. Excepting three or four lines which converge
towards as many great eastern cities, the through business furnishes
but a small part of the income of any railroad. The example of the
Chicago & Northwestern Railroad, which operates about 1200 miles
of its own and leased lines, furnishes a very fair criterion of the
comparative value of these two classes of traffic. The following
table is published :
Statement showing the amount of Earnings on Local and Through Pas*
sengek and freight traffic of the chicago & northwestern rail¬
way, from June 1st, 1867, to May 31st, 1868
local. through.
Passenger, .... $3,017,828.14 $525,203.33
Freight, 7,047,018.95 1,216,790.45
Per cent, of total Passenger Earnings, 85.30 14.70
Per cent, of total Freight Earnings, 85.24 14.76
Rich as all the soil of Iowa is admitted to be, the great central
basin lying between the Cedar and DesMoines rivers, and which is
traversed by the Central Railroad for its entire length, is known to
be the garden of the state. Here the black loam is deepest and
most inexhaustible, and the harvests most abundant ; and here, in-
12
creased railroad facilities for getting crops to market will ensure
the most profitable returns, and an unusually large local business.
The first 1G5 miles of this road, beginning at the Missouri State
Line on the south, traverses the counties of Davis, Appanoose, Mon¬
roe, Wapello, Mahaska, Poweshiek, Marshall, and Hardin. The fol¬
lowing table shows the present population of these counties, and
the progress made since 1860 in agricultural products:
POPULATION AND PRODUCTION.
COUNTV.
POPULA¬
TION.
BUSHELS WHEAT.
BUSHELS CORN.
BUSHELS OATS.
1860.
1868.
i 1860.
1868.
1860.
1868.
Davis,
Appanoose,
Monroe, .
Wapello, .
Mahaska, .
Poweshiek,
Marshall, .
Hardin,
14,921
14,025
11,990
20,672
20,047
12,936
15,514
9,657
28 233
38,850
38,538
44,490
106,401
71,612
81,801
57 786
203,486
177,940
219,042
290,653
458,588
633,586
928,986
353,660
1,263,794
1,131,280
730,856
992,060
1,318,310
542,615
477,775
250,345
1,365,505
1,312,754
1,041,961
1,408,391
2,187,663
1,256,000
1,201,182
662,223
44,789
53,074
29,699
28,955
77,969
49,639
83,285
46,863
281,099
321,022
195,518
190,529
255,373
500,000
280,361
203,419
Totals,
120,362 j
467,211
3,265,941
6,707,035
10,435,679
414,273
2,227,321
PROPORTIONATE DEVELOPMENT
The following table shows the area of the counties above named,
the proportion already under cultivation, and the amount of land
yet to be developed :
COUNT 1'.
TOTAL NO.
OP ACRES.
ACRES
IMPROVED.
ACRES YET
TO BE
DEVELOPED.
Davis p.
Appanoose,
Monroe, ....
Wapello, ....
Mahaska,. ....
Poweshiek, . • . .
Marshall,.....
Hardiu, ....
Totals, ....
322,560
322,560
276,480
276,480
368,640
368,640
368,640
368,640
1860.
87,909
74,627
51,120
65,477
73,850
36,762
34,120
22,593
1868.
109,317
92,263
72,976
113,817
136,613
75,250
114,116
202,363
213,243
230,297
203,504
162,663
232,027
293,390
254,424
166,277
2,672,640
466,458
916,715
1,755,825
It is shown, by the above, that 916,715 acres in the above eight
counties produced, in 1868, 3,265,941 bushels wheat, 10,435,679
bushels corn, and 2,227,321 bushels oats, an aggregate increase of
8,340,422 bushels grain since 1860. Only about one-third of the
13
area of these counties, however, has yet been brought under cultiva¬
tion. The opening of the Central Railroad will so increase the
accessibility of these lands, and so facilitate transportation to profit¬
able markets, that the production will be doubled in five years,
while we may allow the extravagant margin of 33 per cent, for pas¬
turage and waste land, and then have tillable area enough to guar¬
antee a yearly production, in the counties enumerated, of not less
than thirty-six million bushels of grain. While it is not claimed
that all the exports of these counties will pass over this road, it is
sure of the largest proportion, and will draw as much business from
other counties as east and west roads may from these.
! It should be borne in mind that in the above estimates, we have
confined ourselves to the three staple grains of the West; but Iowa
is rich, likewise, in other agricultural productions and in stock.
Thus, Davis county raised, in 1868, 20,850 bushels of rye, and Mon¬
roe county 13,169 bushels. Marshall county had 108,514 bushels
potatoes, Hardin county 92,896 bushels, and Mahaska county 68,449
bushels. Davis county made 84,980 gallons sorghum, Wapello
county 66,765 gallons, and Monroe county 57,534 gallons. Powe¬
shiek county grew, in 1868, 59,143 pounds wool; Marshall county,
64,695 pounds; Monroe county, 82,727 pounds; Appanoose county,
120,810 pounds; Wapello county, 131,849 pounds; Davis county,
144,726 pounds, and Mahaska county, 199,571 pounds, Appanoose-
county contained 17,565 cattle; Davis, 19,878; Mahaska, 28,117;,
Marshall, 15,198, and Monroe and Poweshiek about 14,000 each.,
Appanoose county had 30,683 hogs; Davis, 31,560; Mahaska, 41,433 ;
Monroe, 23,187, and Poweshiek, 20,344. The value of farm produce
for the year 1868, in Hardin county, was $674,117; in Appanoose-
county, $783,893 ; in Davis county, $947,531 ; in Wapello county,
$1,080,885; in Mahaska county, $1,351,444; in Marshall county,
$1,448,160; in Monroe county, $1,164,240, and in Poweshiek county,
$1,052,514.
We have given statistics only from a part of the counties direct¬
ly traversed by the Central Railroad; but lying upon either side of
these counties, and largely tributary to this railroad, are Iowa,
Keokuk, Marion, Jasper, Tama, and Grundy counties, which will
very largely add to the business of the line. Of the first two we
have no report later than 1867. Marion, Jasper, Tama, and Grundy
counties have an aggregate population of 61,692, and 412,983 acres
in cultivation, which, in 1868, produced 3,148,989 bushels wheat*
14
5,630,046 bushels corn, and 997,053 bushels oats, the aggregate val¬
ue of their farm produce being 15,420,759.
The counties lying upon or contiguous to the line of this rail¬
road, north of those whose products we have noted, have not yet
been as largely developed, but they are rich in soil and climate, and
only await railroad facilities to encourage rapid settlement and very
profitable production.
The following table, from the Census returns of 1867, shows the
population, productions, &c., of the twelve counties upon the line of
the Central Railroad, as compared wfith an equal number of counties
along each of the four trunk lines of Iowa, except in the case of the
Chicago & Isorthwestern, and the Dubuque & Sioux City roads,
which traverse thirteen counties. It will be noticed that the com¬
parison is very favorable to the Central Railroad :
m
O
ü
O
13
13
12
12
12
RAILROADS.
POPULA¬
TION.
ACRES
EN¬
CLOSED.
ni ^
W hi
S H
S a
« £
a z
in ¿3
P O
n o
BUSH.
OATS.
On line of Dubuque & Sioux City,
" " Chicago & Northwestern,
" " Chicago & Rock Island,
" " Burlington & Mo. River,
" " Central Railroad of Iowa,
107,528
130,738
160,029
127,228
127,901
691,230
998,346
962,400
753,679
898.504
2,174,073
3,225,168
2.600.335
916,430
1,878,894
3,941,814
8,385,674
11,329,550
8,973,251
8,006,911
2,089,101
2,718,720
2,367,155
1,641,618
2,326,265
KOTES FROM COUNTIES UPOK THE LINE.
To show, somewhat more in detail, the special advantages, both
for settlement and for railroad traffic, possessed by the region of
country traversed by the Central Railroad, we quote below from
notes recently made upon the peculiar features of Monroe, Mahaska,
Poweshiek, and Marshall counties :
MONROE COUNTY.
Monroe county contains 432 square miles, divided into twelve townships. The
41st parallel of north latitude passes through the centre of the county. Until within
three years, the county liad no railroad facilities, being south of the three great cast
and west routes extending across the state from Dubuque, Clinton, and Davenport
respectively. Since the advent of the Burlington & Missouri River Railroad, the
ratio of increase in population has doubled. The most important streams in the
county are Cedar, North Avery, South Avery, Soap, Miller's, Gray, Bluff, and White
creeks, their general course being toward the DesMoines river at the north. No
county in the state is better supplied with never-failing stock water, and good wells
can always be obtained at a depth of from twenty to thirty feet.
15
The surface of the country is high and rolling, giving good drainage and making
the county pleasant, salubrious, and healthy ; miasmatic diseases are very rare.
It has been found that the broken prairies and "brushy" lands of the county,
which were passed over by the first settlers, are unusually adapted to small grains
and to fruit growing.
Monroe county is situated in the " coal measures " of the state. The veins al¬
ready opened and worked in various parts of the county will average four feet in
thickness, one vein on Cedar creek being seven feet thick. It is estimated that coal
underlies more than one-fourth of the county. Of this coal, 137,845 bushels were
mined in 1868, this being mainly for home consumption. "With railroad facilities to
market, the amount mined may be indefinitely augmented. Building and lime stone
of excellent quality are found in the eastern part of the county.
Unimproved land can be bought for from five to fifteen dollars per acre. The
tables already given show the production of the three staple grains in the county for
1868, beside which there was a large amount of other valuable crops. The value of
produce in 1868 was one-third of the entire assessed valuation of real and nersonal
property in the county.
Taxes are light, and Monroe "county warrants" are at as near a par value as
those of any other county in the state. There are seventy-two school districts and
school houses in the county.
Albia is the county seat, and at this point the Central Railroad will cross the
Burlington & Missouri River Railroad. This is one of the most beautiful and thriv¬
ing towns in the state, and the heaviest grain and stock shipping station on the line
of the B. & M. R. Railroad. The town has six church edifices, a fine public hall, a
brick school house for a graded school, two printing offices, and many stores and
factories.
MAHASKA COUNTY.
A letter under date of July 29, 1869, from the editor of the
Oskaloosa Herald, says :
"Mahaska county is principally watered by the DesMoines and the North and
South Skunk rivers, which flow through the county from northwest to southeast,
and afford extensive water power. In addition to these, there are a number of smaller
streams. Pure water can be obtained almost anywhere in the county by sinking
wells from fifteen to fifty feet. The prairies are rolling, of the richest soil,
there is no lack of the best building-stone, and limestone abounds throughout the
county.
"The supply of good bituminous coal is inexhaustible. It is found in various
parts of the county, in beds from four to eight feet in thickness. The amount of coal
shipped from Oskaloosa alone, in one year, was 1,133,200 bushels, which amount
might have been greatly augmented. Coal is also shipped from other points in the
county, adding, perhaps, 500,000 bushels to the above amount.
" The soil is excelled by no other portion of the state in the production of all
kinds of cereals, fruits, and grapes. No better soil exists for the luxurious growth
of timothy and clover, and our farmers are fast introducing these for the use of stock.
I "A more salubrious and healthy region the Creator never made. We have some
cold days in Winter, but the climate is much more regular than in states east of Iowa,
and, in consequence, more easily endured. The atmosphere is dry and bracing dur¬
ing the Winter months, and the roads are always in good condition for wheeling.
"The county is well-supplied with churches and schools.
16
"The railroad trade of this point is large. The amount of lumber received here
in a single year was about 2,500,000 feet, beside which large quantities are received
at other points in the county. We think there can be no hazard in saying that
7,000,000 feet, and perhaps 10,000,000 feet, will be received and sold in the county
within two years after the Central Railroad is put in running order, as it will traverse
a section of country which will make a large lumber trade. What is said ot lumber
will apply equally to all other products, the traffic in which will be stimulated by the
increased facilities of reaching a market.
" Oskaloosa has a population of about 5,000, fifteen churches, new and commodi¬
ous school houses,two excellent select schools, and Oskaloosa College,numerous stores
and manufactories, and many advantages which it offers to the capitalist or the
laborer."
POWESHIEK COUNTY.
Prom notes upon Griimell and Poweshiek county, by Reuben
Sears, Esq., under date of July 29th, 18G9, we extract as follows:
" Grinnell is situated in the midst of a country of unsurpassed loveliness and fer¬
tility. The farms are well watered, yet so well drained that malarious diseases are
scarcely known. There are prepared the present year, for the crop of 1870, about
200,000 acres, which, at the ratio of production in 1808, will produce 0,060,000 bushels
of grain. The Central Railroad will traverse the western tier of townships in Powe¬
shiek county, which will ensure to the road the business of at least one-third of
Jasper county. The eastern part of that county so much resembles our own in
points of fertility, cultivation, and population, that we may make the same estimate
for its production, making a total of 8,888,000 bushels grain for the territory in these
two counties naturally tributary to the road.
" Within two years the whole of this county will be made into farms, which will
be entirely dependent on railroads for fuel, lumber, and stone for home necessities,
while the road will also be the outlet for all their productions. Fifteen years ago,
most of these lands were sold by government at $1.25 per acre; five years since,
they were offered at from $3 to $6 per acre ; now, in its raw state, the land brings from
$10 to $20 per acre, and is being rapidly converted into farms,
" Grinnell now numbers a population about as large as the total of all other towns
in the county. Fifteen years ago, there was not a cabin or a road within miles of its
site. It has now a population of about 2,500; and a proof of its ability is shown in
.its subscription of $55,000 to the stock of the Central Railroad. The city contains
Iowa College (removed lrom Davenport), with nine professors and three hundred
students, its buildings and grounds being valued at $200,000. The city likewise con¬
tains a Park, a National Bank, three churches, shaded streets, model schools, &c.
The investment in new buildings last year was over $100,000. This station has given
more business to the Chicago, Rock Island & Pacific Railroad than any other station
between Davenport & DesMoines, the freights paid on lumber alone being over
$40,000. The shipment of wheat was 120,000 bushels; of corn, 40,000 bushels; of
wool, 20,000 pounds, and of hogs, 6,000."
MARSHALL COUNTY.
From a letter by Charles Aldrich, Esq., we extract as follows:
" Marshalltown possesses one of the most favored locations in the most favored
state of the West. Geographically, it is very near the centre of Iowa, and in the
.heart of a region unsurpassed in agricultural wealth. It is at the intersection of the
17
Central Railroad of Iowa and the Chicago & Northwestern Railroad. During the
past five years, the town has had rapid and substantial growth. The climate is un¬
surpassed in healthfulness, malignant fevers and acute diseases generally being
unknown. The water is excellent. During the seventeen years since the country
in this vicinity began to be tilled, there has not been a failure of the crops.
" The public schools of Marshalltown arc pronounced by the State Superintendent
to be among the very best in the state. Churches are numerous and well supported.
The people are mostly from New England and New York. The population of the
city is about 4,000. Trade is active, one of the houses dealing in agricultural im¬
plements doing an iucreasing business of over $1,000,000 per annum. In 1868, there
was shipped from Marshalltown 600,000 bushels wheat, 750,000 bushels corn, 55,000
bushels oats, 500,000 pounds dressed hogs, and 1,600,000 pounds live hogs."
HARDIN COUNTY.
Prom brief extracts, in the Eldora Ledger, written by E. H.
McBride, Esq., tbe editor, we gather the following in relation to
Hardin county and its principal towns :
"Hardin county is peculiarly situated in regard to railroad facilities. The Dubuque
& Sioux City Railroad skirts it on the north, and the Central Railroad of Iowa on the
east, and the establishment of stations making railroad towns of Ackley, Iowa
Falls, Alden, Steamboat Rock, Eldora, Abbott, and Union, gives us more markets
for agricultural products, we think, than is afforded by any other county in the state.
In addition to these towns, Hardin county boasts of Xenia, Hardin City, Rocksylva-
nia, Berlin, New Providence, and Pt. Pleasant, or thirteen towns in a radius of twen¬
ty-four miles square—a fact which indicates that, so far as climate, soil, health, and
variety of productions are concerned, Hardin ranks first in the list in the opinion of
the rapidly increasing immigrants from the East. Added to these attractions are the
most northern coal fields known in the West. Eldora, the county seat, the largest town
in the county, is in the center of these coal fields, and boasts of having mined during
the season of 1868, 375,000 bushels of coal. Added to this business is the mining of
the different varieties of fire-clays, from the finest kaolin to the coarse clay used for
fire-brick. Beds of this clay have been found fourteen feet in thickness.
" The population of Hardin count}*, as, indeed, is the case of most of Northern
and Central Iowa, is composed of eastern people, who take particular pride in the
erection of churches, fine school and other public buildings, construction of railroads,
and other works of public improvement.
"With such advantages iu soil, climate, mineral productions, and population,
who can foretell the future of Hardin county?"
iraítt ptabments atrîr Síarfects.
P s? V
No more important question enters to-day into the theory
and practice of our political economy than the cost of trans¬
porting the products of the Northwestern States to domestic and
foreign markets. The great cities of Chicago and Milwaukee haye
grown to their present prosperity through the vigor with which
they have pressed the advantages of east and "west routes between
the Mississippi Valley and the seaboard, and in the growth thus ob¬
tained, the lake shipping ports of Detroit, Toledo, Cleveland, and
Buffalo have largely shared. And yet, the east and west route, by
lakes and canals, upon which so great a portion of the grain pro¬
ducts of the West has been carried, is virtually closed during five
months of the year by the ice. On the other hand, the route via the
Mississippi river from St. Louis to New Orleans, and thence by
steamer to New York or Liverpool, is equally available Summer and
Winter.
Other things being equal, that route which has the largest pro¬
portion of water carriage must inevitably be the cheapest, and take
the bulk of heavy freight. Hence, lake and canal transportation from
Chicago and Milwaukee to New York has made these two cities great
entrepots for the harvests of Illinois, Wisconsin, Minnesota, and Iowa.
But the natural water-way down the Mississippi is coming to be
looked upon as the route of the future, for much of this production.
The development of this route between the upper Mississippi and
the seaboard has been retarded by the rapids, which have obstructed
navigation between Keokuk and Dubuque. But the construction
of the Central Railroad of Iowa, traversing, as it does, the heart of
the great wheat growing regions, and affording rapid and econom¬
ical transit to St. Louis, vrill supersede the necessity for the use of
that portion of the river, and will secure to the farmer an uninter¬
rupted market throughout the year. This last point is one of the
greatest importance to all producers at the northwest, as the fol¬
lowing facts will show : The wheat harvest begins in Central Iowa
19
about August 10th, and in Southern Minnesota about August 15th,
lasting from two to four weeks. To secure the crop in good condi¬
tion requires a "sweating" process in stack, occupying about one
month. If this process is omitted, the "wheat will be injured and un¬
fit for grinding—if ground, the flour will spoil and become unmer¬
chantable. The "sweating" will be completed October l-15th. The
lakes and canals close November 10-15th. To get the grain from
the harvest fields to the shipping ports, in season to get through
before the close of navigation, requires a haste which is of
great damage to the producer. The grain must be threshed in field
by machine, at an estimated waste of l-15th. This loss must be
borne, however, to prevent greater loss by holding the grain over and
being then forced to carry it until Spring, or sell during the Winter at
from 20 to 25 cents per bushel less than Fall prices. If, on the con¬
trary, the Central Railroad gives continued communication with tide¬
water during the whole year, the farmer can give his wheat ample
time to be properly cured ; can then thresh it at his leisure during the
Winter months ; can save the wraste by more careful work, and can
realize high prices by supplying the New York or foreign market
with first-class wdieat during those months wrhich are now seasons
of scarcity, owing to the blockade of the route by lake and canal.
In a report made in June of the present year to the Grain Asso¬
ciation of St. Louis, the following comparison wTas made between
the cost of shipping grain from points upon the Upper Mississippi to
the seabôard at New York, via Chicago, and to New Orleans, via St.
Louis, the schedule being based upon prices prevailing in May last :
VIA ST. LOUIS.
To St. Louis by river,
Inspection,
Storage and insurance,
Commissions,
Freight to New Orleans, .
Marine lusurauee,
Total,
10
X
Ii
h
22%
VIA CHICAGO.
To Chicago by rail, . . . 20c.
Inspection at Chicago, . . X
Storage and insurance at Chicago, 2%
Commission at Chicago, . 1%
Freight to Bufliilo, . . . 6)4
Insurance to Buffalo, . . IX
Elevator charge at Buffalo, . 2
Handling at Buffalo, . . %
Commissions at Buffalo, . . VA
Caual freight to New York, . 13%
Total, .... 49x
Allowing 12 cents per bushel freight from New Orleans to New
York, would leave a difference of 14f cents at New York in favor of
the St. Louis route. For the foreign market, the difference in favor
of the river route was even more marked, the freight from New
20
Orleans to Liverpool being ordinarily but 6 to 8 cents higher than
from New York, while, as the table shows, the cost of shipment to
New Orleans is26| cents less than to New York.
The above comparison shows the Chicago route in its most favor¬
able light; for during five months of the year, the lakes and canals
being closed, the grain shipped to Chicago must either pay the much
higher all-rail rates to the East, or else be shipped from Chicago to
St. Louis to be sold, or there transferred to barge or steamer down the
river. While navigation eastward is closed, Chicago finds her chief
grain market in St. Louis, and not less then from 7,000,000 to
8,000,000 bushels were shipped from the former to the latter city
last season. Here the benefit to both producer and consumer of a
north and south road is very manifest. Taking, for example, a ship¬
ment of wheat to market, from the central point of Eldora, on the
Central Railroad, in December, January, February, or March, the com¬
parative distance it would be carried, (paying railroad freight,)
would be as follows :
BY CHICAGO. BY CENTRAL RAILROAD.
Eldora to Chicago, by shortest Eldora to St. Louis,, . 874 miles.
ireight line, . . 38S miles. Gaiu by Central Railroad of
Chicago to St. Louis, . 280 u Iowa, . . . 294 "
608 miles.
Eldora is, however, north of some of the largest wheat-growing
counties along the line of this road, and consequently the advan¬
tage to stations in Marshall, Poweshiek, and Mahaska counties,
would be even more decided.
The benefits of the new road to the population along its line will
not be confined to the facilities it gives for through transportation,
but it will ensure the advantage of the inevitable competition which
follows the opening of new lines of railroad. With Chicago and St.
Louis equally accessible, all traffic will be stimulated and all indus¬
trial enterprises increased in extent and valuation.
During the rebellion no more potent argument was used to stim¬
ulate the raising of men and money for the government than that
the success of the rebellion involved the blockade of the Mississippi.
This fact shows the estimate of the people of the Northwest upon
the disastrous consequences that would result from any interruption
of travel and traffic upon their great highway to the sea.
The following article, from the St. Louis Democrat, shows what
21
has been accomplished during the past few months, toward develop¬
ing the river and grain movement, and what may reasonably be
expected in the future :
" From Jan. 1 to Aug. 21, the wheat received at St. Louis in 1869 was 3,344,160
bushels, and the flour received was 581,488 barrels. During the same time in 1868,
the wheat received here was 2,215,346 bushels, and the flour 316,S16 barrels. But
the whole amount of wheat received here in 1868 was 4,353,591 bushels, and the pro¬
portion received before Aug. 21 was just about one-half. The flour received in 1868
was 805,836, so that the proportion received here before Aug. 21 was about three-
eighths. If, therefore, the receipts of wheat and flour for the rest of the year should
bear the same proportions to the receipts for the latter part of 1868, the total receipts
of wheat here for 1869 will be about 7,000,000 bushels, and the total receipts of flour
about 1,500,000 barrels. The receipts of Chicago for 1868 were of wheat 13,540,250
bushels, and of flour 2,092,553 barrels. The receipts of Milwaukee in 1868 were of
wheat 11,939,758 bushels, and of flour 517,201 barrels. Reducing flour to wheat,
the aggregate receipts for 18G8 were of Chicago, 24,003,015 bushels; Milwaukee,
14,525,763, and St. Louis, 8,382,771; total, 46,911,549: so that Chicago received over
one-half, Milwaukee less than one-third, and St. Louis over one-sixth. Now the re¬
ceipts at this city for 1869, if they continue to show the same increase for the rest
of the year, will be not less than 14,500,000 bushels, reducing flour to wheat, or as
large as those of Milwaukee for last year, and sixty per cent, of the receipts of Chi¬
cago. So much for one year of the grain movement. It has certainly made a differ¬
ence not altogether insignificant already. But when we take into consideration the
wheat which has been forwarded directly from the river ports without stopping at
St. Louis, it will be seen that, counting flour, at least ten millions of bushels have
come this way more than in 1868, or one-fifth of the whole product forwarded that
year by the three cities. But this is only the beginning of the first year of effort. So
much has been done in a few months, what may wc not expect when the results of
this year, thus far so encouraging, shall have stimulated other efforts another year?
Already the farmers all over the Northwest are getting better prices for their wheat,
and rates of shipment to the East have been greatly reduced, because of this St. Louis
grain movement, once so derided. Let those laugh who will. The farmers win, and
they have a right to laugh. Moreover, they will be apt to remembor how the thing
came to pass. And when the grain of next year begins to seek a market, if the mer¬
chants and transporters of St. Louis are ready and enterprising, we may expect in
1870 to fairly match Chicago in grain receipts and shipments. Railroads arc opening
new avenues, and the farmers of the Northwest have learned that the great river is
after all their truest friend."
22
While we have shown that the grain trade and local business of
the Central Railroad of Iowa must be of a profitable character, it
may safely reckon upon a much greater through business than most
of its competitors.
Its terminal points are St. Louis on the south, with 225,000 in¬
habitants, and St. Paul on the north, with 25,000 ; and both these
places are rapidly increasing in population. In Summer, hundreds
of passengers daily go up the Mississippi river between these two
cities, and, under'the most favorable circumstances, must spend
four or five days upon the boats. By rail, the trip could easily be
made in one day. But passengers by boat are so liable to detention
from low water, and other annoyances and dangers incident to west¬
ern steamboat navigation, that there can be no doubt, that the ma¬
jority would prefer the much more rapid as well as safer route by
rail. While, for economy of movement, heavy freights will always
seek water transportation, economy of time will always control
the travel. The business and pleasure travel in this direction is
constantly increasing. St. Paul and the Lake Superior regions are
every year becoming places, of greater Summer resort, and as the
Upper Mississippi river is not navigable during the Winter, the entire
business of that season must be done by rail. The Central Iowa
will furnish the shortest route for this business. The most direct
present railroad route from St. Louis to St. Paul is :
From St. Louis to Chicago, ..... 2S0 miles.
" Chicago to Madison, Wis., .... 138 "
" Madison to St. Paul, ..... 311 "
Total, ....
By Central Railroad of Iowa (by Austin),
Saving
147 miles.
729 miles.
582 "
23
COAL AND LUMBER.
We liave before alluded to the importance of the general lumber
and coal traffic upon western railroads ; but an examination of the
geographical and geological conditions of Iowa will show the pecu¬
liar advantages of the Central Eailroad of Iowa for this business.
Coal of good quality, and in great abundance, is spread over a wide
area of Southern Iowa. [See map.] The veins now being worked
on the line of this road at Oskaloosa are nine feet thick, and coal is
delivered at the mine for about two dollars per ton. The veins be¬
come thinner towards the north, and at Eldora, in Hardin county,
146 miles from Missouri, on the line of the Central Eoad, the
last working veins are found. Northern Iowa and Minnesota
are entirely destitute of coal, and the very scanty supply of fuel
upon the streams disappears as the country becomes settled.
Coal is not only required for manufacturing, but the farmers
generally must depend upon it for domestic use. Hon.
Peter Melendy, President of the Iowa State Agricultural
Society, who has made the railroad development of the state a
special study for years, estimates that the population of those
counties in Northern Iowa traversed by or contiguous to the
line of the Central Eailroad will, in five years, average one fam¬
ily to each quarter section of 160 acres, and that each family will
consume ten tons, or one car-load, of coal per year, for which they
must be dependent upon the railroad. Prom Eldora north to the
state line is 89 miles. The same conditions as regards fuel exist
in Southern Minnesota as in Northern Iowa. Taking the line of
the road from Eldora to a point fifty miles north of the Minnesota
line, and estimating the territory receiving coal from the railroad
as extending fifteen miles each side of the line, we have a dependent
area of 4,170 square miles; which, on the above-named average,
would have a population of 16,680 families, representing a consump¬
tion of 166,800 tons of coal, requiring 16,680 cars for its transporta¬
tion. Adding to this estimate 50,000 tons, or 5,000 cars, for the
families in the cities and towns along the line, and an equal amount
for manufacturing purposes, and not less than 10,000 cars for the
country east and west of the line, and reached by some of the east
and west lines crossed by the Central, and we have a total of 36,680
car-loads for transportation yearly, an average of more than one
24
hundred and seven teen cars for every working day.* It is a fact signifi¬
cant of future traffic, that although coal crops out of the bluffs upon
the DesMoines river, around the city of DesMoines, that city and
Polk county are being supplied more cheaply and with coal of á
better quality from the beds along this line. Another fact show¬
ing the demand for coal in Minnesota is that in July last par¬
ties in St. Louis were shipping coal brought to that city from Car-
bondale, Mo., in barges, to be towed to St. Paul. The opening
of the Central Eailroad will supply that demand with the best of coal,
at a much cheaper rate than it can be boated up stream a thousand
miles.
The entire state of Iowa is wholly dependent upon the great
northern forests for its supply of lumber. A portion of this supply
comes from Chicago, from which point it must pay a rail transport¬
ation of say 300 miles to the interior of Iowa, after having first paid
a lake freight on from 120 to 400 miles. The remaining portion
comes down the Mississippi, from St. Paul, and after being re-han¬
dled, must pay a rail freight to the interior; but as the Mississippi,
above St. Louis, is often too low to be navigable in the Summer, and
is generally frozen over m the Winter, the supply from this source is
uncertain and often very costly. A large amount of lumber is now
being carried by the four east and west trunk lines of Iowa, to sup¬
ply the counties upon the line of the Central Eailroad, brought
from Chicago and the rivers. The growth of these counties upon
the completion of this line must be much more rapid than even that
of the past few years, and the same authority we have quoted above
estimates that not less than thirty cars per day will be needed for
this purpose alone from Grinnell to the north state line. The de¬
mand from Grinnell south will be nearly or quite equal to that north
of that point. The Central Eailroad of Iowa will be able to load
its cars at the great depots in St. Paul, and supply the line of its road
with lumber cheaper than it can be obtained from any other source.
It will have the great advantage of return freights from its coal
trains, which will supply a large district of Southern Minnesota.
In the Fall and Winter, the grain trade will keep the road busy,
and in the Spring and Summer coal and lumber will furnish a large
traffic.
* At Cedar Falls (Black Hawk county, and S3 miles east of Ackley,) there were
received last season six hundred tons of an inferior quality of coal, from Illinois, over
the Dubuque & Sioux City Railroad, at a cost for freight of §5 per ton.
25
The following letter, from the Governor of Iowa, will show the
estimation in which this enterprise is held by the best authorities at
home :
letter from the governor of iowa.
State of Iowa, Executive Department,
DesMoines, Aug. 14,1869.
G. C. Oilman", Esq., President C. P. P. of Iowa, New YorJc.
Bear Sir : I am gratified to receive from you assurances of the
early completion of the Central Railroad of Iowa.
A railroad north and south, through the center of the state, con¬
necting southerly with St. Louis and northerly with St. Paul, as
proposed by your Company, will be hailed with delight by our en¬
tire people. The road will traverse an agricultural district of un¬
surpassed fertility. It crosses some of the best coal fields in the
state. It will open to our people the great grain market of St. Louis,
and be the medium of supplying the country along its line with the
lumber and timber of the forests of Minnesota. As a through line,
it will command a large part of the vast passenger traffic that now
crowds the steamers of the Mississippi river, and will do a large lo¬
cal passenger and freight business, drawn from the nine or ten east
and west roads that cross your line, either completed or in process
of construction.
In view of these considerations, and the fact that your line occu¬
pies the central position in the grand line from St. Paul to St. Louis,
the capitalist cannot fail to see a safe investment for his money in
the securities of your road, especially when he considers that nearly
two thirds of the through line is now in operation, and the grading
of nearly if not quite all of the remainder is paid for by the
people along the line.
I most heartily congratulate you upon the flattering prospects
of your undertaking, and shall feel a real delight in joining in the
celebration of the completion of this most needed thoroughfare,
which I hope will be at no distant day.
Yery respectfully,
Sam'l Merrill.
26
Scans fot Snnstrnctíon.
The people along the line are taking great interest in the con¬
struction of the road, and have made liberal subscriptions to its
stock. This interest is so great, that in several large towns the
stores, schools, and offices were generally closed for two days, and
the business men devoted themselves to obtaining the sum neces¬
sary to make up the promised amount. These subscriptions are
sufficient to grade the road and prepare it for the ties, and a contract
for the completion of the line has leen made. The capital stock is
$30,000 per mile. The First Mortgage Bonds are $16,000 per mile.
A part of the stock has been used in the work already done, and
a sufficient further amount has been taken by the contractors to
secure the completion and equipment of the road.
As before stated, 45 miles of the line from Ackley to Marshall are
now complete and equipped with locomotives, cars, stations, &c.,
and the grading for 50 miles more is nearly finished. This work
has been done by private parties, from their own means, and, with
existing contracts for construction, furnishes a guarantee for the
speedy completion of the line.
27
The Central Railroad Company of Iowa can issue its First
Mortgage Bonds to the amount of $16,000 per mile, and no more.
Many railroads are bonded for nearly or quite double this sum.
The mortgage is made to the Farmers' Loan & Trust Company
of New York, and covers the entire franchises, track, depots, sta¬
tions, machine-shops, equipment of the road, and net income, which
it now possesses or may acquire. The bonds are for the respective
amounts of One Thousand Dollars and Five Hundred Dollars each.
They bear seven per cent, interest, payable semi-annually, free of
government tax, on the 15th days of January and July, in the city
of New York, have thirty years to run, and both principal and
interest are payable in gold. The bonds have semi-annual coupons
attached, but may be registered at the option of the purchasers.
These bonds are now offered for sale at 95 and accrued interest
at the rate of seven per cent, in currency from July 15th.
The first question asked by every capitalist must be, " Will the
investment he safe ? "
Detailed estimates of the probable business of a railroad are never
so reliable as the application of those general principles which have
determined the success of similar enterprises. Like regions of coun¬
try and a like population will produce like results. We have shown
that every completed railroad in Illinois, Iowa, and Wisconsin is a
solvent, paying concern, and we might show that every finished
hundred miles now building in these states is earning more than
the interest on its bonded debt.
But the Central Railroad of Iowa has peculiar advantages, which
may be briefly summed up :
5.
' 1st. It is the only north and south railroad in the state, and
north and south travel from long distances east and west must seek
it as a means of transit.
28
2d. It runs through a most fertile and already populous region,
thus securing a large and immediate local traffic.
3d. As the connecting link between St. Paul and St. Louis, 147
miles shorter than any other line, it will command the through
business between those cities.
Jfth. The geography and geology of the country give it an im¬
portant interchange of freights in coal and lumber.
5th. Its southern connection with St. Louis gives it an advantage
over all other Iowa railroads during the Winter, in carrying grain
to that city for shipment to New York and Liverpool.
While we shall attempt no elaborate calculations upon the details
of its traffic, a few points may well be considered.
The corn, wheat, and oat crop in the eight southern counties
traversed by this line amounted, in round numbers, to seventeen
million bushels in 1868, and will amount to twenty millions in 1870.
If only six million bushels of this crop, or its equivalent in other
productions, are carried an average distance of 100 miles over this
road, at $33 per car, it would yield $600,000. Return freight, at one
half, would be $300,000. The four northern counties not included
in above, may be stated at $200,000. Upon Mr. Melendy's estimates
we have put the consumption of coal in such a tier of counties, when
settled, at 117 cars per day : we will here estimate it at one-half this
amount, or 58 cars of ten tons each. Taking the tolls per car at $25 per
day, we have for 300 days in the year, $435,000. The return freights
in lumber would be about the same. But suppose the immediate de-
demand for coal for domestic use should not reach this amount. A
great system of railroads in Northern Iowa and Southern Minnesota
is looking to this source for fuel, and is earnestly urging the construc¬
tion of this road, and promises to be its largest customer. Four tons
of Iowa coal, costing on the average say $24 in Minnesota, will run a
passenger engine 125 miles better than eight cords of wood costing
$48. The St. Paul and Milwaukee Company will soon operate over
1,000 miles of road, and for more than half this distance the
Central Railroad of Iowa can furnish it with coal cheaper than it
can be obtained from any other source. The Illinois coal field, at
LaSalle, is the nearest point of coal supply for Minnesota, except
29
Iowa, and the distance from LaSalle to Austin in that state, by
nearest railroad route, is 330 miles, while Austin can be supplied
with coal by the Central Iowa from Eldora in 103 miles—a differ-
ence of 227 miles. To supply 500 miles of road would require 20
car-loads, or 200 tons, per day. The Southern Minnesota will have
300 miles in operation, and is but 80 miles north of the Iowa coal
field, and must look there for its cheap fuel. A western railroad
president estimates his ability to obtain coal at $3 per ton, instead
of wood at $0 per cord, as equivalent to a ten per cent, annual div¬
idend on the stock of his company. We think it enough to show
that the coal traffic must be very large, and that a basis of 58 cars
per day is far within what may be expected. The same may be said
of lumber. The Dubuque & Sioux City road carried over seventy
million feet from the Mississippi river into eight counties of Iowa
during last year, exclusive of a large additional supply shipped from
Chicago. The freight amounted to not less than $350,000. The
Northwestern road earned over a hundred million feet, into 12
counties, at a freight of over $750,000 ; and in both cases, this freight
received at least one extra transhipment. The Central of Iowa will
load its cars at the great lumber markets of Minnesota, and we can
see no reason why its shipments should be so low as a hundred mill¬
ion feet, or why its freights from this source should not be nearer
a million than a half million dollars in any year. Grouping our cal¬
culations, we have the following
ESTIMATE OF BUSINESS FROM EIGHT COUNTIES ON TWO HUNDRED
AND FORTY MILES.
Six million bushels grain or its equivalent, at $33 per car, . $000,000
Return freights, ....... 300,000
From northern counties, ...... 200,000
Fifty eight ears coal per day, 300 days, at $25, . . 435,000
Return freight of lumber, ...... 435,000
Passengers, mails, local freights, &e., .... 250,000
Total, $2,220,000
This gives gross earnings amounting to over $9,000 per mile per
annum, and is less than the earnings of the Northwestern in Iowa
last year, and is but little more than half the earnings of some of
the Illinois roads occupying similar relative positions. We have
given the above figures only as reasonable probabilities. Some
items may be diminished and others increased, but the bondholder
will be safe in any event, for if one half this sum is earned, the in-
30
tereSt is perfectly secure. But take the earnings as before stated,
and we have the following result :
Cr.
Gross Earnings, ...... $2,220,000
Operating Expenses, 00 percent., . . . 1,332,000
Net, $888,000
Dr.
First Mortgage Bonds, 240 miles at $16,000 per mile—
total, $3,840,000; interest at 7 per cent, gold, . $268,800
Add 33 1-3 per cent, premium, .... 89,600
Add 5 per cent, government tax, .... 13,440
Total, . . . . • . . . $371,840
Surplus, . ..... $516,160
We have estimated operating expenses at 60 per cent., but the
fact, that this road runs through the great coal fields for most of its
length gives it its supply of fuel at not more than $3 per ton, and
will reduce its operating expenses 10 per cent, below less favored
roads.
But suppose it possible that the gross earnings of the road should be
only 14,500 per mile, a year ; it could still be operated for about 60 per
cent., which would leave $1,800 per mile as net earnings, or $250
per mile more than interest liabilities.* But the general fact that
railroads built through such a region, with such important connec¬
tions, and with such peculiarly valuable local traffic, always pay, is
the best argument we can use in favor of the perfect security of the
Central Railroad of Iowa's First Mortgage Bonds.
SPECIAL SECURITY PROVIDED.
Forty-five miles of the road are already finished ; but for the re¬
mainder, it is provided by special contract with the Farmers' Loan
& Trust Co., that the bonds, or the moneys received from their sale,
shall remain in possession of that Company as Trustee, to be deliv¬
ered or paid out to the Railroad Company or their order, only upon
the Engineer's estimates, as the work progresses. This precaution
secures the investor against any misappropriation of his funds.
* On Oct. 15th, 1869, the Superintendent reports the present earnings of the portion of the
road open for business at the rate of $4,200 per mile per annum. This amount is to be taken
only as an indication of the large earnings to follow the extension of the line, and the conse¬
quent security of the interest. It will he noticed that the interest for one year (the time ex¬
pected to be occupied in construction) on all bonds issued on the unfinished portion of the
road is reserved with the Trustee.
31
PAYMENT OF INTEREST.
There is no doubt that the earnings of the road will be ample
for this purpose, as soon as or even before entire completion ; but to
provide against any possible contingencies, it is further agreed on the
part of the Kailroad Company to leave the amount of one year's in¬
terest on every bond sold in the possession of the Trust Company,
to pay the first two semi-annual coupons as they mature.
These precautions for the benefit of the bondholder are not usu¬
ally taken, and should inspire increased confidence in the security.
An investment of $10,000 in government sixes or Central Iowa sev¬
en per cent, bonds will produce this result :
$10,000 buys Government Sixes, at 20 per cent.
premium, amounting to . . . . $8,333
$10,000 buys of Central Iowa Sevens, . . 10,500
Interest on $8,333 Governments at 6 per cent. -=$199.98,—
less 5 per cent, income tax, ....
Interest on $10,500 Central Iowas at 7 per cent. =$735.00,
5 per cent tax paid by Company, ....
$474.99 net.
735.00 net.
Difference in annual income favor of C entrai Iowa, . $200.01 gold.
In other words, an investment in Governments, at the present
rates, pays less than 4f per cent, gold, against Central of Iowa's
7 per cent, gold, or nearly 10 per cent, currency. Holders of Gov¬
ernment Bonds can exchange them for Central Iowa Bonds, at
a handsome present profit, to which will be added the largely
augmented interest. Upon the basis of prices September 1st, agents
for the sale of Central Iowa Bonds will pay difference as follows :
For 1,000 U. S. Bond, 6's, '81, Reg. 1,000 C. R. of I. Bond and $282.50
U
(I
u
5-20's, '62, Coup., u
" 44 "
U 10g U <1
" *4,Reg., 44
10-40's, 5's 44 4-
44 44 Coup., 44
u
u
u
44
a
u
n
44
44
282.50
275.00
276.25
276.25
170.00
206.25
The difference paid will, of course, vary with the fluctuations of
the market price of Government Securities.
PROFIT OF INVESTMENT.
First-class bonds are generally valuable in proportion to the
length of time they have to run. While the construction of our
railroads and the development of a new country makes a large pre¬
sent demand for money the time will come when this demand will
be comparatively small, and when our rate of interest will
approach European standards. Our government debt will doubt-
32
less be funded at about four per cent., and sucb railroad
securities as tbis will command a premium. These bonds are more
convenient as well as more profitable than real estate mortgages, as
they can be readily used as collateral at banks, and can be sold in
the market on any day.
The Company reserve the right to advance the price at any time,
but will fill all orders actually in the mail before such advance.
Further particulars in relation to the manner of subscription may
be found in the advertisement on the cover.
W. B. SHATTUCK,
New York, September 15, 18c9. Treasurer.
»+«
(fopir hf ilje Doiiir.
The following is a copy of the First Mortgage Bond of the Central Railroad Com¬
pany of Iowa :
FIRST MORTGAG-E BOND.
91,000. STATE OF IOWA. $1,000.
No XJIsTITED STATES OF AMERICA. No
THE CENTRAL RAILROAD OF IOWA,
§tor ^atue 2t«eii>rb, TOE CENTRAL RAILROAD COMPANY OF IOWA promises to
pay to the Farmer's Loan and Trust Company, of New York, or bearer, ONE THOUSAND DOUARS,
in United States gold coin, at par, on the fifteenth day of July, in the year eighteen hundred and
ninety-nine, with interest, in gold coin as aforesaid, at the rate of seven per cent, per annum,
payable semi-annually, free from U. S. Government tax, on the fifteenth days of January and
July, in each year, on presentation of the respective coupons hereto attached. Both rrincipal
and interest being payable at the office or agency of said Railroad in t.he City of New Yoric. This
Bond is one of a series of First Mortgage Bonds, of five hundred dollars and of one thousand
dollars each, to be issued at the rate of only sixteen thousand dollars per mile of single railroad
track, ironed and equipped for business by said Railroad Company. The payment of the prin¬
cipal and interest of said bonds is secured by a deed of trust to the Farmer's Loan and Trust
Company, bearing even date herewith, conveying to the said trustee all the Railroad of this
Company, located In the State of Iowa, including the road-bed, depot grounds, buildings, right
of way, rolling stock, machinery, franchises, and net income acquired, and to he acquired, by
said Railroad Company, and duly recorded in the several counties in the State of Iowa, through
which the line of said Railroad extends. Any holder of this Bond may, after five years, have the
same converted into the capital stock of the said Railroad Company, and be entitled to receive
therefor ten shares of said capital stock, on the surrender of this Bond, with all the unpaid
coupons thereto annexed. This Bond shall not become obligatory until the certificate endorsed
hereon is signed by the authorized officer of said Farmer's Loan and Trust Company.
gin 'gSitnesö ^ßcrcof, The said Railroad Company has cansed its corporate seal to
he hereto affixed, and these presents to be signed by its President and Secretary,
and countersigned by its Treasurer, on this fifteenth day of July, A. D. 18C0
Countersigned,
W. B. SHATTUCK, Treasurer.
C. C. OILMAN, President.
CHAS. COLLINS, Seceetaev.
Untitles of ^nxorporíiíion.
Article 1.—We, the undersigned, do hereby form ourselves into an organization and body
corporate, with perpetual succession, and with power of renewal, il' it shall expire by limita¬
tion of statute or accident, to be known by the name of " The C'en irai, Railroad Company
op Iowa,1' and by that name shall have power to adopt a common seal, sue and be sued, plead
and be impleaded, contract and be contracted with, acquire, hold, possess, encumber, and
transfer both personal property and real estate, make and adopt by-laws, and do any and all
other things which bylaw and the statutes of Iowa like corporations have power to do ; and
shall be entitled to all the exemptions, privileges, and benefits oflike corporations.
Article 2,—The object of this corporation shall be to acquire, construct, maintain, and
operate a, Railroad from the south to the north line of the State of Iowa, beginning at the State
line of Missouri, at ornear the present northern terminus of the North Missouri Railroad, and
running from tnence north on the 16th meridian of longitude west from Washington, or as
near thereto as practicable.
The following points on the line having already been established :
Moravia, in Appanoose Co. ; Albia, in Monroe Co. ; Oskaloosa, in Mahaska Co. ; Marshall-
town, in Marshall Co.; and Eldora, in Hardin Co.
The road to be single or double track, or partly of both, as necessity may require.
Article 3.—The capital stock of this Company shall be limited to twelve millions of dol¬
lars, to be divided into shares of one hundred dollars each, its issue for the purpose of con¬
struction being restricted to the sum of thirty thousand dollars per mile of finished single track
road, and to be issued only as f ist as the road may be ironed and put in operation, save and
except the sum often thousand dollars per mile, which can be issued when the road-bed is
made ready for the ties; but for the purpose of retiring the-bonds of the Company at some
futnre day, a further issue of stock is authorized to the amount of sixteen thousand dollars per
mile; this issue shall not be made within five years, from date, and when made shall be used
lor the purpose of conversion at a price not less in value than that of the bonds which may
thus be retired.
Article 4.—The indebtedness of the Company shall never exceed the sum of twenty thou¬
sand dollars to ihe mile of road finished, and the bonds which may hereafter be issued shall
not exceed the sum of sixteen thousand dollars to the mile of road ironed and ready for opcra-
t.on by single track : said bonds shall run for a period of time co, less than thirty years, and to
hear a'rate of annual interest not exceeding seven per cent, in coin,free of government, tax.
Should any portion of the bonds thus authorized be sold before the road is in complete opera¬
tion, it shall only be at a price which this Board of Directors may fix from lime to time, the
proceeds thereof to be placed in the hands ofresponsible trustees, who »hall disburse the same
only for the construction and equipment of the road.
Article 5.—The principal p ace of business of the Companyshall be at Marshalltown,
Iowa, but the Board of Directors may also hold special meetings in the City of New York.
The transfer office shall be in Marshalltown, but may be in New York City, if the Directors
shall at any time so order.
Article 6,—The private property of stockholders of this Company shall not be held liable
for corporate debts.
Article 7.—The business of this Corporation shall be managed by a Board of eleven
Directors, who shall be elected annually on the first Monday in August ; should the election in
any year not be holden on t.ie stated day, it may afterwards be holden by order of the Board
ofïtirectors. Six Directors shall constitute a quorum for business.
At all elections and meetings of the Company each share shall be entitled to one vote,
which maybe cast by ihe shareholder in person, or by proxy in writing.
The Board shall also have power to appoint an executive committee of three from their
number, with such power as the Board snail from time to time confer; the powers thus con-
ierred shall at all times he subject to be revoked by the. Board
Acticle 8.—The officers of this Company shall be a President and Vice-President, chosen
by the Board from their number, and a Secretary and Treasurer, and Transfer Agent, each of
whom shall be appointed by the Board of Direciors, who, with all other persons appointed to
any place bj the Board, shall hold their respective places during the pleasure of the Board of
Directors ,
The Board of Directors shall have power to fill all vacancies occurring in their own number.
They also shall have power to appoint any and all such officers, agents, attorneys, and employ-
ms as may be Dccessary and proper to transact the business of the Company, and to revoke the
snuie.
Article 9.—This Corporation shall commence on the Twcnty-tbird day of June, A. D.18C9,
and continue until it expires by limitation of statute, with rights of renewal.
Article 10.—The Articles of Incorporation may be amended at any regular Stockholders'
meeting, by n two-third vote of the stock issued, and by record and publication of the amend¬
ments as required by the statutes of Iowa.
Article 11.—Absent Directors may vote by proxy at any Directors'meeting, when held,
in writing, by a Director present. When proxies of absent Directors are required to make a
quorum for business, the action of such meeting shall only become valid and binding on the
Company when the minutes thereof are ratified by the written endorsement of all Directors
present in person or proxy.
Signed at Marshalltown this 23d day of June, A.D. 1S69.
[Signatures of Incorporators.]
I, Ed. Wright, Secretary of State of the State of Iowa, do hereby certify that the foregoiug
is a true and correct copy of the origiual Articles o f Incorporation ôf the Central Railroad Com¬
pany of Iowa, as appears from the records in this office,
j State ot Iowa ) Wituesss ray hand and official seal, at Des Moines, this
( Seal. / third day of August, A. D. 1869.
ED. WRIGHT,
Secretary of Stale,
TIHCIE
Central Railroad Company
OF I O "W A.,
OFFER A LIMITED A MO'ÏÏNT OF THEIR
FIRST MORTGAGE BONDS,
INTEREST SEVEN PER CENT. COLD,
AND PRINCIPAL PAYABLE IN GOLD,
At 95 and Accrued Interest.
These Bonds are issued in sums of $1000 and $500 each, at the rate of only $16,000
per mile of finished road. Tire interest is payable in New York, free of Gov't tax,
on the 15th days of January and July. At the present rats of premium on gold,
they pay *
NEARLY TEN PER CENT.
ON THE INVESTMENT.
Over $100,000 of these Bonds have already been taken. Parties subscribing will
remit the price of the bonds and the accrued interest in currency at the rate of
6even per cent, per annum, from July 15tli, 1869. Subscriptions will be received in
New York at
THE COMPANY'S OFFICE, No. 32 Pine Street,
and by
THE BANK OF NORTH AMERICA, No. 44 fan St.
and
HOWES & MACY, BANKERS, a fan street.
Remittances should be made in drafts or other funds par in New York, and the Bonds
will be sent free of charge bg return express. Parties subscribing through local agents,
will look to them for their safe delivery.
W. If. Sil AT TUCK, Treasurer.
NEW YORK, October 15, 1869.
The statements contained in the within pamphlet are made after a careful personal
investigation of much of the line, by the Treasurer, accompanied by several Eastern
parties, who proposed to take an active part in the construction of the road.