The Ripley advertiser. [volume] (Ripley, Miss.) 1843-1897, 1858-05-26
yo!une XVI.
Southern Pacific Railroad.

lne purpose oil extending their opera
tions and entering vigorously and al
large on the building otthe road, have
been greatly mlsapprehcnded and mis-
stated. A very erroneous impression
has been made, that the mortgage
and deeds of trust which have been
executed for the purpose of iacilita-
ting the work, are membranes made
necessary by new einbarrassments
! Nothing can be more remote from the
truth in regard to the origin and pur,
pose of these arrangements. Instead
Of being signs of embarrassment,t they
are proof of the energy and activity
with which the enterprise is conduc-
ted.
1t is well known that the company
never relied on the subscriptions to
the stock for the means of building
the road. 1t was one of the condI
lions of sub scription that only five per
cent. should be ever called for; be
cause the franchises and land grants
derived from the State OF Texas would
be sufficient, when they were finally
and inalienably vested, to furnish the
means and establish the credits by
which the work could be completed,
and the debts created theron dis
charged, leaving large excess for the
owners. The payments on the stock
were required to provide for the OBJ
Legations and expenditures Of the past,
and to carry on the road, until the
charter and other privileges should be
secured, and the company become
vested with full title to the lands
upon which their calculations for am
pie credit and final success rested.
These things have been accom-
plished; the company have passed
through its crisis of debt, and fulfilled
the conditions upon which the char
tered privileges have vested them, in
defeasbly.
The next step is to make them a
vailable for the purpose of building
he road, and this was the object OF
lc mortgage and deed of trust, which
have, been executed. The policy is
Identical with that pursued by the H.
linois Central Company, which was
projected with the same plan OF ma
king its land grants basis of credit
for loans, to be secured by the bonds
Of the company for the construction OF
the road and the support OF the com
pany. In like manner and for the
like purposes, the Southern Pacific
Company have executed mortgage
creating a lien in favor of those who
may become purchasers of construc-
non bonds on the railroad with all It's
appurtenanccs, and upon six millions
of acres of the land sronted.by the
State to the company, and by them
conveyed to trustees for these purpo-
ses; there are careful provisions for
the receipt and canceling of bonds in
exchange for lands, and the ap-
preparation of the proceeds OF the
sale of the lands to the eXtinguish
tnent ofthe bond debt, accompanied
by a code of minute instructions for
the direction Of the trustees, and the
management of the fund. Besides
this general mortgage, there is spe-
cial deed of trust, conveying one mil
lion of acres to trustees for the pur
pose of sale, from time to time, on the
requisition of the company, to raise
funds for the payment of interest on
the construction bonds.
The detail Of these arrangements
are very ample, and will doubtless be
made known to the annual meeting Of
the stockholders, which will take
place in few weeks. 1t is sufficient
10 sav of them, that they are drawn
up with a view Of securing the ina
lienable lea Of stockholders on the
lands of the company, and the faith
full application of the lands, or the
proceeds of the sale, to the necessary
expenses of the road, and the re-
demption Of the debt to be contrac-
ted for building it. They put into a
legal and binding shape the pledge OF
the company that the road shall be
held as security for the bondholders'
and the lands set apart ior inc re-
demption of the bonds. -,
We make these explanations with
out entering into all the details OF the
arrangements, in order to dispel the
idea which has got about that these
deed. arc membranes on the com
pany, and obstacle, to its progress,
They are indeed the necessary and es-
sential means for enabling it TO pro-
ceed in the great work, and proof of
the earnest determination of the com
pany to go on diligently and construct
the road out of the means which their
improved condition and its successful
progress have placed within their
reach.-Nav Orleans Picdyune.