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.

THE construction of the plank roads had given such impetus to business, and the completion of the Toledo, Norwalk & Cleveland Railroad had so clearly demonstrated 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 COMPANY 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, successors, 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 Senecaand 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 stoc kholders 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 certificate 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 obtaining 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, A. D. 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 thirtyseven 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. Buck. land 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 ordered 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 dollars; not sufficient to pay the bonds mentioned 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 Fremont, 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 stockholders 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 threefourths 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 conveyed the road property to the new company, December 26, 1871. That part of the road in Indiana was reorganized November 10, 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, LaQ. 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 eightysix miles, before the 25th day of April, 1874, when tinder foreclosure proceedings the roadand 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:

And this court, having examined the said final account and report, and found the same in all respects in accordance with law and the order of the court, and that the said receiver has duly paid and delivered all money, credits and property of every kind which came into his possession or control, by virtue of his appointment and office in accordance with the order and direction of the court, and has in all respects well and truly and faithfully discharged all his duties as such receiver, it is hereby ordered that the said final report and account be and the same is hereby approved and confirmed, and the said Isadore H. Burgoon discharged from all further accountability as such receiver. And he is especially commended for the ability and faithfulness with which he has discharged the arduous duties of his office. Approved.

R. P. BUCKLAND AND CALVIN BRICE,

Attorneys for Lake Erie & Louisville Railway Company.

OTIS, ADAMS & RUSSELL,

Attorneys for Plaintiffs, the Trustees.

This account being confirmed, Mr. Burgoon's duties as receiver were ended. Yet he was to receive further manifestations of approval for his energy and activity. The road was now under the management of Mr. Hodgskin as a representative of the purchasers. A new company was promptly formed after the purchase, in New York city, of which Mr. Hodgskin was president. Mr. Hodgskin, from the time he purchased the road, seemed to appreciate Mr. Burgoon's ability and integrity, and kept him as superintendent of the road until the decease of President Hodgskin, which occurred March, 20, 1879. Soon after the death of Mr. Hodgskin the annual report of the company was made showing, its condition for the year ending December 31, 1878, andwas signed by Charles Foster, as president, under date of March 26, 1879. C. R. Cummings, of Chicago, succeeded Mr. Hodgskin as president, and the directors again chose Mr. Burgoon as superintendent of the road.

The road was now scaled of all its debts, and was represented by one million five hundred thousand dollars of stock. A syndicate, it is said, was formed to purchase in this stock, for good judges affirm that the road at this time was worth at least two millions of dollars. This syndicate probably embraced the holders of large amounts of the stock, and the stock held by those outside this syndicate was quietly purchased at about twenty cents on the dollar, until all was gathered in. Soon after the purchase of the stock had been accomplished, and probably in June, 1879, the road seems to have been consolidated with other western lines, and became part of what has since been known as the Lake Erie & Western Railway.

The northern terminus of the Fremont & Indiana Railroad, under all the different names by which it was known, had been at the head of navigation on the Sandusky River in Fremont, and all freight intended for transportation by water was carried down the river and through the Sandusky Bay, past Sandusky City, into Lake Erie, to any desired port on the lakes.

However, after the first consolidation with an Indiana road, and the design was formed to make Louisville the southern terminus of the line, the intention was entertained to extend the road to the lake at some point, but this intention was never executed by that company. When the road was last transferred and took the name of Lake Erie & Western Railway, the new company made proffers to the people of Sandusky to extend their road to that place if sixty thousand dollars were

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raised in that city to donate towards the cost of the extension.

Under an act of the General Assembly of the State, the voters of Sandusky authorized the city to issue sixty thousand dollars of bonds, which were sold, and the sixty thousand dollars procured. The proceeds of these bonds were not paid to the Lake Erie & Western Railway Company, but a new company, called the Sandusky & Fremont Railway Company, was formed, and proceeded to construct a road between the two cities named. Work was commenced on this road about July 1, 1880, and made ready for trains about the last of February, 1881, and is practically and extension of the Lake Erie & Western Railway.