History of Sandusky County Ohio with Illustrations 1882, Part 25

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The leading man of Gale Town was one James Morrel. He was a justice of the peace, an active man in all public affairs, and withal the controlling member of the local board of school directors. Mr. Morrel was ardently opposed to having the county subscribe for the stock, and had infused his feelings and sentiments

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into the minds of his neighbors, so that the locality was quite strongly anti-subscription. The speakers were there about eight o'clock, expecting to find the schoolhouse lighted and the men assembled to hear what was to be said. But all was dark. One of the residents was found, who at once set off to Mr. Morrel's residence for the key to the schoolhouse, but returned with the word that the directors had consulted over the matter and concluded that the schoolhouse should not be used to advocate a scheme to swindle the taxpayers of the county. However, a man was found, after some effort, who said, though he was opposed to subscribing for the road, he thought it wrong to treat men so who came to speak on the subject, and he be- lieved it was right to hear both sides.

This gentleman procured admission into a small wagon-maker's shop, where the work man had left his tools and lumber in readi- ness to commence the next day's work. He also procured, a single tallow candle, which he fastened to the wall back of the workbench; and, after partially clearing the bench, a few men besides the speakers gathered in to hear. The only way to get light enough to read memoranda, or reckon figures, was for the speakers to stand on the workbench and read, and from there deliver their remarks and answer questions. They mounted the bench and undertook to set forth the benefits which that part of the county would derive from the railroad when constructed. Hamer's Corners, since named Clyde, was indeed a promising place for marketing farm produce, and the speakers endeavored to convince the few hearers there of the fact. After talking about half an hour each, and answering various questions and replying to sundry objections, the speakers came home, quite well satisfied that if the people of Green Creek township were so

blind about their own interest, the success of the road was very uncertain.

On the Saturday next before the election, there were more men in the city than usual on that day. Mr. Birchard, and John R. Pease, and other friends of the road had become alarmed about the result. These men noticed the fact that there was, for some reason, on that day, a large proportion of Democrats on the streets, and also a number of the active opponents of the road. Mr. Everett had been out speaking the night before until quite late, and, after dinner, hoarse, tired, and thoroughly exhausted, had sought the refreshment only to be found in sleep. He was awakened by a delegation, sent by Mr. Birchard and others, with orders to go at once into the street and make an address on the railroad question. Worn and hoarse, and unfit as he was, he obeyed the orders under the impulse of his own zeal in the work, and for about half an hour summed up the arguments pro and con to a large crowd of listeners on Front street, in the open air, and this ended his labors in that campaign. Much discussion of the measure between individuals was had that day, and great good for the work was no doubt accomplished.

The election was held on the first Monday in April, 1851, and the following certificate shows the result:

STATE OF OHIO, SANDUSKY COUNTY, COURT OF COMMON PLEAS.

I, La Q. Rawson; Clerk of the Court of Common Pleas in and for said county, hereby certify that, at the election held in the several election districts in said county, except the townships of Townsend and Woodville, for the purpose of voting for or against railroad subscription to the capital stock of the Toledo, Norwalk & Cleveland Railroad Company, the vote, as appears by the abstract and returns on file, stands as follows: For railroad subscription 1,174

Against railroad subscription 774

Majority 400

April 10, 1851.

D. CAPPER, Deputy Clerk,

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On the 16th .day of April, 1851, the county commissioners, namely: Martin Wright, Michael Reed, and Hiram Hurd, met at the auditor's office, and, as their journal shows, found that the election had been had, and that a majority of the votes cast on the question was in favor of subscribing fifty thousand dollars to the capital stock of the road, ordered the stock to be subscribed accordingly, and that bonds to pay the same be issued, bearing interest coupons at seven per cent. per annum, payable semiannually, in due form, and in two series; one series numbered from one to forty, inclusive, for one thousand dollars each, and the others numbered from one to one hundred, inclusive, for one hundred dollars each. The order further provided that these bonds be delivered when there was executed a stipu- lation to abide the proposition of the directors of the company against loss, and upon delivering the proper certificate of stock equal to the amount of the bonds.

The stipulation with the directors of the road alluded to in the order was, that the county should not suffer any loss by the subscription for stock. The bonds were made ready for delivery, but the commissioners refused to deliver them until there was ample security given to indemnify against loss, according to the verbal promise of the directors.

The undertaking of the directors themselves did not satisfy the commissioners, and they then demanded a bond, signed by residents of the county, of known ability, to pay any damage or loss the county might suffer.

Thereupon came a suspension of the delivery of the bonds for nearly two days. The friends of the road finally agreed to indemnify the county against all loss by reason of subscribing the stock and issuing the bonds, on condition that the com- missioners would stipulate in the bond of

indemnity to sell and transfer the stock whenever the signers of the bond should require them to do so. A bond was drawn, with the conditions clearly set out, and delivered to Sardis Birchard, who undertook to return it, signed by men whose pecuniary circumstances would satisfy the commissioners, that in no event could the county be a loser by taking the stock and delivering the bonds. This undertaking was returned on the second day after, signed by about thirty of the solid men of the county. The bond is not now in existence, or at least cannot be found, but the writer of this sketch thinks now it was for the penal sum of one hundred thousand dollars, and, though he cannot remember the names of all the signers, recalls now among them the names of Sardis Birchard, R. P. Buckland, Rodolphus Dickinson, Nathan P. Birdseye, James Moore, John R. Pease, and La Q. Rawson. He much regrets his inability to place on record all the other signers, that the present and future inhabitants of the county might know who is entitled to their gratitude for the great benefits the road has conferred and is still conferring, and will continually confer on all who reside or may reside in the county. At the time this indemnity was demanded, it was plainly to be seen that, but for the prompt action of these signers, the road would probably not have been built, or, if built, it would not have passed through Fremont. But the indemnity was so ample that there was no longer any excuse for the exercise of that vigilant, if not extreme prudence, on the part of the commissioners, which came so near to working a final defeat of the enterprise.

The bonds were delivered and the stock taken, however, and the rapid construction of the road followed. A consolidation of the Junction and the Toledo, Norwalk & Cleveland roads was doubtless

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arranged for privately by the managers early in 1853. But the agreement to consolidate was not publicly and certainly known until July 15, and then to take effect September 1, 1853.

In this arrangement such terms were made as to raise the value of the stock of Toledo, Norwalk & Cleveland considerably above par, and create a demand for it, in which condition of affairs the signers of the indemnifying bond demanded a sale of the stock held by the county. The stock was sold sometime in April, 1853, and the bonds redeemed and burnt up July 1, 1853, by the commissioners. In the transaction the county gained by the rise of the stock over fifteen hundred dollars above all expenses.

The first through passenger train passed over the road on the 7th day of February, 1853. After the consolidation the road was called the Cleveland & Toledo Railroad, and passed by that name until it was consolidated with the Lake Shore road, April 6, 1869, since which date it has been denominated the Southern Division of that road, and has formed a part of one of the great trunk lines of road from east to west.

THE BENEFITS OF THE ROAD CONSIDERED.

The reader will remember how, in the history of this road, the project was opposed and was once voted down; how cautious the county commissioners were in requiring a guarantee against loss by the county, in consequence of subscribing fifty thousand dollars to the capital stock, in order to insure the construction of the road, and how, afterwards, the stock was sold at a premium of fifteen hundred dollars. Now let us glance briefly at the further results which so completely justify the friends of the road in their efforts to

build it, and at the same time illustrates the folly of opposing the march of improvement which had then (1852), reached this county on its way to the Great West.

In 1854 the county duplicate shows that the Toledo, Norwalk & Cleveland Railroad Company paid into the county for taxes on its property the sum of three thousand three hundred and sixty-four dollars and thirty- five cents. Ten years later, in 1864, it paid for taxes into the treasury, nine thousand four hundred and fifteen dollars and twenty- five cents.

This annual tax increased year by year until, in 1876, it paid into the treasury for taxes the sum of seventeen thousand two hundred and ninety-eight dollars.

In the year 1877 the amount was a little less, being sixteen thousand three hundred and seventy-four dollars. In 1878 the amount paid for taxes was twelve thousand two hundred and thirty-four dollars. In 1880 the sum paid was thirteen thousand and ninety- nine dollars and thirty cents.

The county auditors will show, that during the twenty-eight years of its existence, and including the year 1880, the road has paid into the treasury of this county alone, an average yearly tax of not less than nine thousand dollars, or an aggregate sum of two hundred and fifty-two thousand dollars. Now add to this large sum, which is to be swelled year by year, the gain to our farmers from the increased price of their products, and also the increased value of farming and city real estate in the county, and surely the friends of the road who resided in the county and struggled so hard to have it built, are justified in their views and opinions, and rewarded amply for all their labors for the public good.

CHAPTER XV.

THE FREMONT & INDIANA RAILROAD.

Organization of the Company-Building the Road-Its Financial Difficulties-Sales of Road-Reorganization of the Company- Change of Name-Perseverance, Trials, and Pluck of the President and some of the Directors-How it came to be Part of a Great, Important Line of Transportation, now called the Lake Erie & Western Railway.

T HE construction of the plank-roads had given such impetus to business, and the completion of the Toledo, Norwalk & Cleveland Railroad had so clearly demon- strated that all, and more than all, the benefits promised by its advocates were realized, that the town became ambitious for further improvements, and under the stimulus of this ambition the

FREMONT AND INDIANA RAILROAD COM- PANY WAS INCORPORATED.

The General Assembly of the State of Ohio had passed an act, May 1st, 1852, to create and regulate railroad companies. The act provided that any persons, to the number of five, by certain proceedings might obtain from the Secretary of State a certificate of incorporation, and thereby become a body corporate, with all the powers necessary to build a railroad in Ohio. The Fremont & Indiana Railroad Company was incorporated under this law by certificate dated April 25, 1853. The incorporators were L. Q. Rawson, Sardis Birchard, James Justice, John R. Pease, and Charles W. Foster Mr. Foster residing at that time at Rome, in Seneca county, and the other corporators at Fremont, in Sandusky county.

The corporators, their associates, suc- cessors, and assigns were empowered to build a railroad from Fremont, in Sandusky county, thence through Sandusky and Seneca counties to the town of Rome, in Seneca county; thence through Seneca

and Hancock counties to the town of Findlay, in said county of Hancock; thence through the counties of Hancock, Allen, Auglaize, Mercer, and Darke to the west line of the State of Ohio, in the county of Darke. The certificate of incorporation specified the capital stock of the company to be two hundred thousand dollars. This capital stock, on the 17th of October, 1853, was increased by the proper certificate to one million two hundred thousand dollars, and again increased, July 23, 1855, to two millions of dollars.

The law of May 1, 1852, to create and regulate railroad companies, provided that, so soon as ten per centum of the capital stock should be subscribed, and five dollars on each share paid in, the corporators might notify the stockholders to meet and elect directors, and the directors should then meet and elect a president, secretary, and treasurer.

These requirements of the statute were promptly complied with, and the company organized, during the time that the capital stock was fixed at two hundred thousand dollars, as designated in the original cer- tificate of incorporation. The increase of capital stock was authorized subsequently.

The directors elected L. Q. Rawson, president; A. J. Hale, secretary, and Squire Carlin, treasurer of the company.

The work of obtaining the right of way and contracting for the building of the road was promptly begun. True it was, that the completion of the Toledo, Nor-

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walk & Cleveland Railroad, and advent of the iron horse harnessed for regular business on the 7th of February, 1853, had demonstrated the advantages of railroads to the county, and had overcome the prejudices which the advocates of that road were compelled to meet and vanquish. But the friends of the Fremont & Indiana road encountered difficulties which, though of another kind, were no less formidable; these were an indifference on the part of a portion of our people, resulting partly from the unfavorable condition of our money market. These causes combined rendered the ob- taining of money to carry on the work very difficult. But the president of the company, L. Q. Rawson, was determined to build the road. In his indomitable will to accomplish this he was supported by such men as James Moore, Charles W. Foster, David J. Corey, and Squire Carlin, the two latter named being residents of Findlay, in Hancock county; Foster residing at Fostoria, formerly Rome, in Seneca county, and Rawson and Moore being residents of Sandusky county.

How the road was bonded; how and at what rates the bonds were sold and secured by mortgage on the road; how the obligations of the company were found unavailable for the purchase of iron for the road; how the five men above named, under the influence of President Rawson's will and pluck, pledged their private fortunes to obtain the iron for the road, and what and how much these five brave men were compelled to sacrifice for the completion of the road to Findlay, and how they labored to extend the road further on, might form an interesting chapter in this history, if space permitted its insertion. But it is enough to say briefly, that, but for the bravery and pluck of these men, under great discouragements, and their

large sacrifices of their own private means, the road would not have been built, and Fremont might never have realized the benefits of a southern and southwestern line of transportation:

WHEN THE CARS FIRST RUN TO FOSTORIA.

By the pluck, perseverance, and pecuniary sacrifices of these men the road was built, iron laid, and cars for carrying freight and passengers put running from Fremont to Fostoria, formerly Rome, on the 1st day of February, 1859.

During the summer and fall of 1859 the work progressed, and. iron was laid to within about one mile of Findlay. The people of Findlay were very desirous of its completion, but they did not come forward with the money, and the resources of the company were exhausted.

In this condition of affairs David J. Corey, one of the directors above named, usually called Judge Corey, went to New York early in the spring of 1860, and on his own private credit bought iron sufficient to complete the track into the town of Findlay, thereby making a distance of thirty-seven miles from Fremont.

While this was being done, the road had been made ready for the iron nearly to Lima, in Allen county. In this condition of the company's affairs it was overtaken by insolvency.

In the same year Joseph B. Varnum and Henry L. Mott, trustees named in the mortgage given to secure the first mortgage bonds of the road, commenced an action in the Court of Common Pleas of Sandusky county, to sell the road to pay arrearages of principal and interest which had become due to the holders of the bonds. This suit was prosecuted by Messrs. Buckland and Everett, attorneys for the trustees, and resulted in a decree of foreclosure, and an order for the sale of the road was entered October 14, 1861. The sale

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was made between the October and January terms of the court, the road franchises, property, and fixtures being bid off by the creditors.

The sale was confirmed, and a deed or- dered January 6, 1862.

On the 21st of January, 1862, a new company was organized, and took the name of the Fremont, Lima & Union Railroad Company, to construct a road on the same route as that which had been adopted by the Fremont & Indiana Railroad Company.

The corporators of the Fremont, Lima & Union Railroad Company were: Charles Congdon, of the city of New York; David J. Corey, and Squire Carlin, of the county of Hancock, and L. Q. Rawson and James Moore, of the county of Sandusky, State of Ohio.

L. Q. Rawson was made president, and R. W. B. Mclellan secretary, and also treasurer of the new company.

The Fremont & Indiana Railroad, at the judicial sale, sold for twenty thousand dol- lars; not sufficient to pay the bonds men- tioned in the mortgage, and the original stock in that road was, of course, lost to the holders.

The capital stock of the Fremont, Lima & Union Railroad Company was increased by the proper certificate of the Secretary of State, under date of May 17, 1864, to two million five hundred thousand dollars.

On the 4th of February, 1865, the Fre- mont, Lima & Union Railroad Company entered into an agreement with the Lake Erie and Pacific. Railroad Company, of the State of Indiana, by which it was agreed to consolidate the two companies, and that the consolidated road should be called the Lake Erie & Louisville Railroad Company. The agreement was ratified by the stockholders of the Fremont, Lima & Union Railroad Company, on the 14th of January, 1865, and by the stock

holders of the Lake Erie and Pacific Company on the 18th of the same month, and the road on that day took the new name of "Lake Erie & Louisville Railroad Company," with a capital stock of six million dollars, in fifty dollar shares. After this organization was consummated, it became the settled purpose of the company to build a through line of railroad from Louisville to the head of navigation on the Sandusky River, so that heavy freight could be carried by water, thence to Buffalo and New York, and passengers and light freight could pass east or west from Fremont on the southern division of the Lake Shore railroad.

The Lake Erie and Louisville Railroad Company continued to operate and extend its line beyond Findlay, and also, by contract with other companies, namely, the Columbus & Indiana Central, and the Jeffersonville, Madison & Indianapolis, constructed twenty and three-fourths miles of their line, and put it in operation between Cambridge City and Rushville, in the State of Indiana.

There remained unpaid bonds issued by the Fremont, Lima & Union Railroad Company, and also bonds issued by the Lake Erie and Louisville Railroad Company. On these bonds a large arrear of interest was unpaid. These bonds were secured by mortgages to trustees for the benefit of the bondholders.

On the 29th day of March, 1871, the trustees commenced proceedings in the Circuit Court of the United States, to foreclose their mortgages and sell the road. On the 4th day of April, 1871, L. Q. Rawson was appointed receiver by the court, and took charge of the road as such. The road was sold under the decree of foreclosure, on the 18th day of October, 1871, but the property remained in charge of the receiver, Rawson, until January 1, 1872. The road and property

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of the company was sold to trustees for the bondholders.

The part of the road located in Ohio, that is from Fremont to Union City, was reorganized November 4, 1871, under the name of the Fremont, Lima & Union Railway Company, and the trustees con- veyed the road property to the new company, December 26, 1871. That part of the road in Indiana was reorganized November to, 1871, under the name of the Lake Erie & Louisville Railway Company, and these two companies were consolidated April 12, 1872, under the name last above given.

Bonds were issued by the road as follows: Five hundred thousand dollars on that part in Ohio, and ninety thousand dollars for that part in Indiana between Union and Cambridge City, and mortgages given respectively. This company put the road in operation to Lima, and then to St. Mary's, and graded the roadbed from Union City to Cambridge City, Indiana, a distance of thirty-four miles.

But the bonds were not paid, and on suit of trustees to foreclose the mortgage on the property of the Lake Erie & Louisville Railway Company, the road was again placed in the hands of a receiver. From the first organization of the Fremont & Indiana Railroad Company, through all its ups and downs, all its trials and tribulations, L. Q. Rawson had been president and chief manager. He adhered to the enterprise, through good and through evil report, and he gave his time, his untiring energy and great executive ability, and largely of his pecuniary store, to keep it up and carry it through. But President Rawson saw his wishes accomplished so far that the road was completed and cars running on it to St. Mary's, a distance of eighty-six miles, before the 25th day of April, 1874, when under foreclosure proceedings the road

and its property were placed in the hands of a receiver, and as such receiver Isadore H. Burgoon, of Fremont, took full charge of the road, and managed it successfully, and to the satisfaction of all concerned, until March, 1877. The road was finally sold at judicial sale in two separate parts; that is, the part in Indiana being the subject of one, and the part in Ohio the other. The sale of the part in Ohio was confirmed February 24, and that in Indiana March 8, 1877.

This last purchase was made by the newly formed Lake Erie & Louisville Railroad Company, through Mr. James B. Hodgskin, acting as trustee for the owners and holders of the first mortgage bonds of the Lake Erie & Louisville Railway Company. This sale carried to the purchasers all property of the company, personal and real, and the purchaser took it, of course, divested of all prior claims.

On the confirmation of this sale to Mr. Hodgskin, or soon after, Mr. Burgoon, the receiver, filed in the Court of Common Pleas, of Sandusky county, his final report and the account of his doings and dealings in the management of the road of which he had full charge as receiver, under direction of the court, for almost three years.

Isadore H. Burgoon is a son of one of the many worthy pioneers of Sandusky county, Mr. Peter Burgoon, now deceased. After attending the common school near his home, was for a time sent by his father to Oberlin College. After leaving Oberlin he went into the service of the Fremont & Indiana Railroad Company as office and errand boy, and from that station was advanced, step-by- step, in the service of the company, to that of general superintendent. We are pleased to record the fact that every step of this advancement was earned by hard work,

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combined with unusual activity and integrity exercised in behalf of his employers.

Mr. Burgoon's final report and account as receiver was presented to the court and confirmed, not only without question, but by consent of the counsel on both sides, and he was highly complimented for his management of the affairs of the road, as is shown by the order of confirmation, which is as follows:

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History of Sandusky County Ohio with Illustrations 1882, Part 25

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