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Re: [BRHSlist] Need info about Rockford, Rock Island & St. Louis RR

To: sdwest@m..., BRHSlist@yahoogroups.com
Subject: Re: [BRHSlist] Need info about Rockford, Rock Island & St. Louis RR
From: Q5632west@a...
Date: Wed, 26 Feb 2003 11:30:35 EST
In a message dated 2/25/03 8:17:47 am, sdwest@m... writes:

>I'm working on a historical project in the Rock Island, IL area, and 
>am looking for any and all information regarding the "Q" predecessor 
>R,RI & St. L RR.

Greetings:

This road proposed to run up the Rock River Valley gave competing business 
interests in Ogle County one more project to fight over. See below. Note in 
this account the Rockford, Rock Island and St. Louis is succeeded by the St. 
Louis, Rock Island and Chicago as previously mentioned, but it then morphs 
without explanation into the St. Louis, Rockford and Chicago. I don't know 
if that's a typo or actually reflects another name change.

Regards,

Bill Diven


The History of Ogle County Illinois
H.F. Kett & Co., Chicago, 1878

Pages 441-442

ROCKFORD, ROCK ISLAND AND ST. LOUIS RAILROAD.

On Thursday, February 10, 1870, the people of Oregon voted a subscription 
to the capital stock of the Rockford, Rock Island and St. Louis Railroad 
Company, conditioned that no bonds should be delivered in payment therefor 
[sic] until the road should be constructed at and within the Town of Oregon, 
and was to be void if the road was not so constructed and in operation before 
January 1, 1871. It was in aid of an effort to build the road from Sterling 
to Rockford, and other towns in the county responded to the call. But the 
road was not built, and afterwards the old Rockford, Rock Island and St. 
Louis was purchased by a new company called the

ST. LOUIS, ROCK ISLAND AND CHICAGO,

at the nominal sum of $10,000 per mile, bonds for the payment of which were 
given to the German capitalists who owned the old road. In the Spring of 
1876 that company made the following proposition to the citizens of the Rock 
River Valley:

Resolved, That if the people living between Sterling and Rockford will 
donate the right of way and sufficient grounds for depot purposes, for 
building a railroad from Sterling to Rockford, and will then subscribe enough 
money in stock and bonds, said bonds not to be in excess of $300,000, to 
build said railroad, under the supervision of an engineer to be appointed by 
this company, that this company will operate said road as a part of its own 
line, and will pro-rate with it on all freight and passenger business passing 
over it, or originating, or terminating on the same, and allow to holders of 
its stock and bonds 25 per cent of its gross earnings. This company 
furthermore guaranteeing that said 25 per cent shall amount to no less than7 
per cent interest per annum on the bonds outstanding, and requiring that if 
the said 25 per cent shall be in excess of the interest named, then said 
excess shall be used, first, for the payment of dividends on the stock to the 
amount of not exceeding 10 per cent, and any surplus after paying the 
interest on the bonds, and 10 percent dividend on the stock, shall be used 
for the redemption of the bonded debt until the same be wholly liquidated.
After the redemption of all the outstanding funded debt, the said 
railroad shall belong to and become the property of the St. Louis, Rock 
Island & Chicago Railroad Company, and each stockholder shall be entitled to 
an amount of new stock to be issued by the St. Louis, Rock Island & Chicago 
Railroad Company, equal to the amount of stock which each one held in the 
said above mentioned road.
We hereby certify that the foregoing is a true copy of a resolution 
adopted by the Board of Directors of the St. Louis, Rock Island & Chicago 
Railroad Company, at its meeting on Tuesday, May 23, 1876.

H. Osterberg, President.
Walter Trumbull, Secretary.

Subsequently five of the seven directors of the company agreed to 
guarantee that the 25 per cent of the gross earnings would pay seven per cent 
on the $300,000 bonds, and an annual dividend of $10,000; or they would issue 
two kinds of stock--upon one kind they would guarantee six per cent interest, 
and no more, and upon the other the holder might receive as high as ten per 
cent, but must take his own chances upon the earnings of the road.

On Monday, May 29, 1876, the officers of the St. Louis, 
Rockford [sic] & Chicago Railroad Company, held an inquiry meeting at Dixon, 
and submitted to the people the question, “Will you build a railroad?” At 
first, said Mayor Hawley, of Dixon, “It fell like a wet blanket upon our 
hopes.” “The bare idea,” says the Oregon Courier of June 12, “that the 
citizens of this valley were called upon to build a railroad; to own, 
operate, and have a railroad; to grade, tie, bridge, iron, and rent a 
railroad, seemed so absurd, that no body [sic] wanted to get within forty 
feet of the Baron (Osterberg) who proposed it, lest perchance, their little 
all should be swallowed up by the immense and terrible affair.” But, after 
listening to the arguments of Baron Osterberg, Judge Gould, Charles Deere, 
and others of the St. L., R. & C. R. R., a more favorable impressions 
prevailed.

The people organized a stock company under the laws of the state, knownas
the Rock River Valley Railroad Company, for the purpose of constructing a 
road from Sterling to Rockford. The estimated cost of grading and bridging 
this road--52 miles--was set down in round figures, at $200,000. This money 
the new company wanted to raise. If they could raise it and grade the road, 
then there were responsible parties who stood ready to tie and iron the road 
for $300,000 worth of seven per cent bonds. Mr. Brewster said the St. L., R. 
& C. company would guarantee the ties and iron, and put them them down for 
that sum.

There were then, and are now, differences of opinion in relation to the 
motives of Mr. Osterberg and his associates. Some were convinced that he 
honestly intended to build the road if the required aid were furnished, while 
others as stoutly maintain that such was never his design, that the object 
was to create an enthusiasm along the proposed line, on the strength of which 
a sale could be effected, of the entire road. However this may be, it is 
certain that while the route was surveyed, and sites for depots selected, the 
people called upon Mr. Osterberg for a reduction of his terms, and finally 
the whole scheme was abandoned.

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