Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1867-08-29
THE UNION PACIFIC RAIL ROAD
THEIR FIRST MORTGAGE BONDS AS AN
INVESTMENT.
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The rapid progress of the Union Pacific Rail-
road, now building west from Omaha, Nebras-
ka, and forming, with its western connections,
an unbroken line across the continent, attracts
attention to the value of the First Mortgage
Bonds which the Company now offer to the
public. The first question asked by prudent
investors Is, "Are these bonds securet 7" Next,
"Are they profitable investment 81 To reply
in brief: g
list. The early completion of the whole great
line to the Pacific is as certain as any future
business event can be. The Government grant
OF over twenty million acres of land and fifty
million dollars in its own bonds practically
guarantees it. One fourth OF the work is already
done, and the track continues to be laid at the
rate of two miles day.
I'd. The Union Pacific Railroad bonds are is
sued upon what promises to be one of the most
profitable lines of railroad in the country. For
many years it must be the only line connecting
the Atlantic and Pacific: and being without
competition, 1t can maintain remuneratiye
rates.
I'd. 425 miles of this road are finished, and
fully equipped with depots, locomotives, cars,
&c, and two trains are daily running each way.
The materials for the remaining % miles to the
eastern base of the Rocky Mountains are on
hand, and 1t is under contract to be done in
September. N.r aas sa
4th. The net earnings Of the sections already
finished are several times greater than the gold
interest upon the First Mortgage Bonds upon
such sections, and if not another mile Of the
road were built, the part already completed
would not only pay interest and expenses. but
be profitable to the Company.
9Th. The Union Pacific Railroad bonds can be
issued only as the road progresses, and there
fore can never be in the market unless they re-
present bona fide property.
6tn. Their amount is strictly limited by law
to sum equal to what is granted by the U s.
Government, and for which it takes second
lien as its security. This amount upon the first
ST. miles west from Omaha is only $4,000 per
mile.
7th. The fact that the U. s. Government con-
siders a second lien upon the road q good in
vestment, and that some of the shrewdest rail-
road builders OF the country have already paid
in five million dollars upon the stock (Which is
to them third lien), may well inspire conf
dence in first lien.
Sth. Although it is not claimed that there can
be any better securities than Governments.
there are parties who consider q first mortgage
upon tuch property as this the very best secu-
rity in the world, and who sell their Govern
ments to re-invest in these bonds-thus secur
ing greater interest.
9th. As the URion Pacific Railroad bonds are
offered for the present at 30 cents the dollar
and accrued interest, they are the cheapest Be-
curity in the market, being more than IS per
cent lees than U. s. Stocks.
10th. At the current rate of premium on gold,
they pay
Over Nine per Cent. Interest.
The daily subscriptions are already large, and
they will continue to be received in New York
by the
Continental National Bank, Not Nassau ST.,
Clark, Dodge, q Co., Bankers, 81 Wall ST.,
John j. Cisco b Son, Bankers, No. 50 Wall
Street, and by Banks and Bankers generally
throughout the United States, of whom maps
and descriptive pamphlets mey be obtained.
They will also be cent by mail from the Com
pany's Office, No, % Nassau Street, New York,
on application. Subscribers will select their
own Agents In whom they have confidence, who
alone will be responsible to them for the safe
delivery of the bonds.
JOHN j. CIs"O. Treasurer,
maySod sw3m NV York