The Sun.
London, England, 1867-07-11 00:00:00

Investments in the United States.

The Union Pacific Railroad Co. advertise for
sale their First Mortgage Bonds, having 30 years
to run, bearing annual interest, payable on the
Ist days of January and July, in the City of New
York, at the rate of 6 per cent., in gold, which bonds
they offer at 90 cents. in the dollar, receiving the
paper money and paying the interest
capital in
in bullion. As the Tenth Section of 40 miles
has been passed by the Government Commis-
sioners and accepted by the President, 345 miles
of the road have been completed west from
Omaha, fully equipped, with trains regularly run-
ning over it. The Company state that they have
now on hand sufficient iron, ties, &c., to finish the
portion which remains to the eastern base of :the
Rocky Mountains, 172 miles in length, which is
contracted to be completed by the Ist September
next, and they expect that the entire road from
Omaha to the Western (connection with the Cen-
tral Pacific,
now being built eastward from Sacra-
mento, California, will be in running order dur-
ing 1870, or three years hence. They estimate
the
whole line at 1,565 miles. The cost of
the portion now finished, with depots, stations,
locomotives, &c., was $50,000 per mile, and
they believe, from the reports of their engineers,
that without the equipment the remainder can be
completed at an expense not exceeding 70,000 per
mile, making the total for 1,565 miles, from Omaha
to the California boundary, about $100,000,000.
The Chicago and North Western Railroad has
been completed to Omaha, making a direct Eastern
connection with all the Atlantic States. The
company divide their means for construction
under three heads. In the first place, the
United States issue on the completion and ac-
ceptance of each section of 20 miles, by Govern-
ment commissioners, 6 per cent. 30 year Bonds, at
an average rate of about $28,250 per mile. Next, the
company are permitted by the Government to issue
First Mortgage Bonds to the same amount ; third,
a donation is given by the Government of 12,800
acres of land per mile, in aid, amounting in the
aggregate to 20,032,000 acres, which may be va-
lued at $4 per acre. This gives a total of about
$118,500,000, while the estimate of the whole cost
is but $100,000,000. This is exclusive of the
authorised capital stock of $100,000,000, of which
five millions have already been paid in, and not
more than twenty-five millions will be required.
By a special Act of Congress, the United States
Bonds are made a second mortgage, the first mort-
gage being the company's own issue. The interest
on the second mortgage is paid by the United
States Treasury, but one-half of the company's bills
against the Government for transportation, mails,
&e., are retained by its officers as a sinking fund, to
be applied to the payment of interest on capital. It
is impossible to estimate what the profits will be
on the entire line when finished—a line which
will in truth revolutionise the tide of travel.
But enough can be gathered from the actual
working of the portion opened to show how
enormous the profits will be. The earnings for the
two first weeks in May on the finished sections
amounted to the sum of $113,000. The extra-
ordinary advance in the milling prospects of the
Pacific States foretels the immense trade likely to
be developed by this railway when it penetrates to
the line of California. From the mines opened on
the Comstock Lode at Virginia city, Nevada,
bullion exceeding in value $64,000,000 has been
taken since 1862. Seven tons of the precious metals
were shipped from th_.t city during the week ending
May 4, valued at $439,192, and the Enterprise calcu-
lates that Virginia city will export $2,000,000 per
month in gold and silver bullion, while it considers
that there is more reason to predict a large increase
than a reduction during the summer. The Salt
Lake Vedette states that a number of heavy bricks
from the Illinois ledge of the mines of Pahrangat
had caused an excitement in the city of the
Morraonis, Tile Yellow Jacket declared a dividend

for last May of $75 in gold per foot ; the Savage
Silver Mining Company, $2OO per foot ; the Chollar
Potosi Silver Mining Company, $25 per foot ; and
the Imperial Silver Mining Company, $lO per
share. We cannot tell what this rate per annum is.
But in November last year, the Yellow Jacket, the
Savage, and the Imperial paid at the rate
respectively of 360, 888, 780 per cent. per annum
on the subscribed capital, and for January and
February the Savage divided at the rate of 814 per
cent. per annum, and the Imperial for January gave
at the rate of 783 per cent. per annum, and
for February at the rate of 1,175 per
cent. per annum, and we believe the May
dividends to be in excess of these enormous
returns. These facts may give capitalists
in England an idea of the value of the Union
Pacific Railroad, as well as of the richness of t►he
country through which it will penetrate. The
bonds are not offered for sale in England, for
Americans do not come to Europe to raise capital
for their most paying enterprises, although, of
course, they are willing to receive capital for these
undertakings if it comes from Europe to them.
They leave capitalists here to discover the value of
the investment offered, and while money is a drug
in the British metropolis, lacking confidence as that
metropolis does in the security of the great English
lines and other concerns, it would, we believe, be
well worth the while of English investors narrowly
to inquire into the fields open in the United States.
The British public may not generally be aware that
there are two lines running westward to the Rocky
Mountains. The first, of which we have written
is from Omaha, and the other starts from Leaven-
worth on the Missouri River. The former is com-
pleted, as we stated, 345 miles, and the latter 210.
Both are constructed on the same financial system,
and will join before penetrating into the Rocky
Mountains. —An glo- Anzel ican Times.