The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1858-04-23
SOUTHERN PACIFIC RAILROAD.

in relation to the Southern Pacific Railroad
1t is copied from the New Orleans Creole
one of the best and most reliable newspape
prints in Louisiana:
The "logic of dollars" presented by IN
Bulletin of last week upon this subject, elicit
ed so much interest that we propose to ex
tend this line of argument, TO unfold the sub
jsct Of its pecunaTy aspect. We have, here
tofore, viewed it politically, socially and com
mercially, and now TO the dollars. Ii is pro
posed to sell only Si2,O0O,O00 of five pc
cent. stock-six millions of this amount be
| ing sold. This amount of stock sold, vii
furnish the means, ample and abundant, witt
the assets OF the company, to construct a
least fifty miles of the road; when this i
done, the company will be entitled TO receive
from the State of Texas $4,000 acres o
land, and loan of six thousand dollars pc
mile, making 100000. The rights of tn,
company will then be complete and fixed
subject to no forieitures. The company ma,
issue, we think safely, S3.OOO,O0O of it,
bonds upon $4,000 acres of laDd, and a roaC
in full operation of fifty miles, with fair, YET
certain assurance of ready sale.
This amount could be expended in slaves
and, at 8 800 each, would purchase, if sold
at par, 1900 hands. They, together with the
land, would constantly add, by finishing sec.
ton after section of the road, additional lands
to the property of the company-for il is be.
lieved, 1000 hands can construct two hun
dred miles per aDnum. The loan of six
thousand dollars per mile is almost sufficient
TO purchase the iron and equip the road
The money acquired BY The issue of bonds
upon the $4,000 ACRES of land for the first
fifty miles of road, being invested in property,
becomes, in addition to the road and the
lands, security Of the fullest, most unbounded
character for the protection and payment of
the bonds OF the company. There can be no
difficulty in selling bonds. which IRE so per-
fectly secured. 1t will thus BIZ seen how the
pitt"nre OF five per cent paid upon the $780,
100000 of stock is ample TO construct the
road through the State of Texas, because its
expenditure brings the company in full pos
session of property, rights and franchise
and each section thereafter supplies addition.
al resources to the company MS the work pro-
g'esses. Three millions paid upon the sixty
millions of stock, constitute all that can be
required of its stockholders. If more be
needed, it will not be raised by additional or
further calls or assessments upon this stock,
but from the sale Of more stock. II is, how.
ever, believed no more will b. needed. Then,
it will be seen that three millions constitute
the capital, by stockholders; and the State of
Texas supplies the remainder Of the means
to construct the road.
The lowest estimates placed upon the
lands which this company will acquire, is FIVE
dollars per acre. We believe they will yield,
if well selected and wisely disposed of, the
price of the lands belonging to the Illinois
Central Railroad, and more, selling at about
fifteen dollars per acre. Al the lowest prices
they will give the company $40,000000.-
Tie estimated cost Of the road, by able and
competent engineers, fixes it at less than
SIS 100000. Let US. however, assume the
cost at S2O,OOO,OOO. Now who gets the sur
plus S20,000,O00! The 100000 of stock
subscribed and paid for, which will be $685.
33b for every IS paid by stockholde s. This
the stockholders will receive rs u fund for
distribution or else expend it in building the
road from FL Paso 10 the Pacific Ocean.
Who then, receives the dividends from the
TOuu IlstiI, WHICH Is DcItNtu, ny cue NhtiHS
men, will not fall short OF twenty or twenty
five per cent. upon its actual cost? The
three millions of capital paid in by stockhol-
ders must receive annually and forever, the
dividends. II win thus be seen the most en-
ormous results which ever came from 80 pal
try an investment must and will inevitably be
realized with faithful administration Of this
work. Let US assume the Illinois Central
lands rs basis Of calcuation-and we think
even this below the reality-and what have
We?
The vast sum of one hundred and twenty
millions of dollars. Twenty million expend.
ed upon the road, leaves SlOO,O0O,00O for
Who gets it The S3,OO0,OOO
of capital stock of the company must be the
basis of its distribution For every IS paid
in BY stockholders, they then have upward
of Sl60 for distribution; and the annual
profits OF the road which has cost the sum of
800. 100000.