The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1867-06-08


that period will constitute a sinking fund suffi-
cient for their redemption at maturity
2d-7he First Mortgage Bonds.-The Govern
ment permits the Company to issue Its own
Mortgage Bonds at the same time, and on the
seme terms, and for the same amount, and by
special oct Of Congress these bonds Of the Company
0,e made FIRST MORTGAGE on the entire line
and property of the road, the Government bends
being subordinate. The amount of these bonds
to be issued by the Company is limited to an
amount equal to those issued by the Government
To aid in the construction of the road
&.-7ne Land GrdnL-While this is certainly
munificent at the same time it is most advanta-
geous to the Government, for without it, all its
own lands would remain almost worthless. It is
donation OF every alternate section for 20 miles
on each side of the road, or 1880 acres per mile
and amounts to 2O,039, 900 acres, assuming the
distance from Omaha to the California State line
to be 1,565 miles, Much of this land especially
in the Valley of the Great Platte, is rich alluvi-
um, and is considered equal to any in the world
for agricultural purposes. Hon. E. d. Mansfield,
the learned Commissioner Of Statistics for the
State of Ohio, estimates that at least 9,4OO,O
acres will be available to the Company within a
moderate length of time and that it is far within
bounds to estimate this entire grant at 81 80 per
acre, or $30,0O0,OOO. The Illinois Central has
realized more than four times this sum from a
similar grant.
p REHABILITATION OF MEANS FOR 1866 MILES,
U. s. Bonds, equal to money, $A,20S, 900
Land grant, 2OO32, 900 acres, say 3OOOO,OOO
~f a"T te $11s,416,OOo
equal to cost of nearly $4,000 per mile,
which is believed to be q liberal estimate This
does not take into the account the value Of the
right of way and material, the stock subscription
already paid in or to be paid in future, or the
present discount at which the bonds are offered,
as they are expected soon to be at par.
The Interest on the Bonds is more than provi-
ded for by the net earnings of the various sec
tiOns of the road, as they are completed On the
305 miles on which the cars are now running
west from Omaha, the receipts for the first two
weeks in May were $4,000; and as the road is
extended towards the great mining centers the
business in freight and passengers contantly in
creases--and as there can be no competition from
rival roads, the Company has full power to charge
remunerative prices.*
PROSPECTS FOR FUTURE BUSINESS.
1t needs no argument to show that the traffic
Of the only railroad connecting the Atlantic and
the Pacific and passing through the great mining
region, must be immense.
metals is now officially estimated at $100,0OO,OO
per annum, vastly greater sum will be obtained
as soon as the Union Pacific Railroad opens the
way to the gold regions of the Rocky Mountains.
Now, the difficulties and cost of communication
are so great, that but the very richest veins
can be worked; but with cheap transportation
hundreds of thousands of hardy miners will sue
cessfully develop other mines, that, with less
costly working, will be even more profitable than
the average OF those now in operation; and the
business of this constantly increasing mining
interest must pass over this road.
The records Of our shipping offices show that
not less than $4,000 passengers now annually
travel by sea between the Atlantic ports and San
Francisco; and these reckoned at $3.50 each
about one half the steamer price, would produce
revenue of $1,500000.
The overland travel is even greater. In
single year, twenty-five thousand teams, COM
prising vast number of emigrants and Travellers
departed from two points only ON the Missouri
River on their westward journey If the truth
OF this statement was not familiar to all frontiers
men, it might well be questioned But, estima-
ting the overland through travel at the same
figures us that by steamer. and we have $l5O 600
600 as the minimum estimate on the same num-
Der of passengers. But the facilities for cheap
and rapid transit furnished by railroad always
vastly increases the amount of travel with the
same population. The difference between the
numbers who would take an ocean steamer or a
prairie wagon and modern palace-car, with its
luxurious state-rooms where the traveller eats
and sleeps almost as comfortably as ut home, may
be as great as the difference between the numbers
who were jolted over the mountains in an old
fashioned stago-coach and those in an Express
train between any two great cities. Then, is it
not safe to say that this through travel will be at
oy,p l,,l1 Hal &la ln%,o IS L.. |.
1870, and, with the rapid increase of Pacific
Coast population in the next few years, more
than quadrupledA Is it at all extravagant to hssert
that the through passenger business during the
first year after the first train Of cars runs
from Omaha in Nebraska to Sacramento, will be
worth twenty-five million dollars When to this
we add half as much more for way passenger
business and more than as much more than both
tor its freighs, expresses and mails etc. there
not the best reasons in the world for believing
that the Union Pacific Railroad will be one Of
the most profitable rs well as one of the grandest
works Of modern times?
THE SECURITY AND VALUE OF IT'S BONDS
We have made these calculations that the pub
lie may have some brief data of facts from which
to form their estimate Of the value of the Union
Pacific Railroad Company's First Mortgage
Bonds. Besides men of the greatest railroad
experience i'll the country have shown their con.
fidence in the stock by liberal subscriptions, and
this stock must be subordinate to all other claims.
But there are stronger proofs Of the security and
value Of the First Mortgage Donds than any we
have named . u 81 .'......
l. That for the safety of the country as well az
national economy the road is indispensable.
2 That by an investment of about fifty mil
| lions in Second Mortgage on the road, the
Government practically guarantees the principal
and interest on the first mortgage