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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