The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1867-06-06
MEANS FOR CONSTRUCTION.

equipments
MEANS FOR CONSTRUCTION.
When the government determined that
the road must be built, it also deter
mined to make the most ample provision
to render its speedy construction beyond
Il doubt.
5lst.-THk .GEANT OF MONEY. - The
Govern m ent issues to the Company its
Six FER CENT. THIRTY YEAR BoNps at
the rate of $4,000 per mile for the whole
road, and, in addition, for $50 miles
across the Rocky Mountains this grant is
te6led making it $4,000 per mile and
from the termination of this section to
the California line about s9S miles J, the
grant is dou5led. making s32 900 per mile
the, whole amount being Sil,20S,0 600.
These bonds are issued by the Govern
ment only on the completion of each Sec
ton OF twenty miles, and after the Com
missioners appointed by the President of
the United States have certified tn at it is
thoroughly built and supplied with all
the machinery, DC, of a first class rail
road. The interest on these bonds is
paid by the L. S. Treasury, and the Coy
ernment retains, as a sinking fund to be
applied to repayment of principal and
interest, one half the regular charges
made for transportation by the Company
against it. These bonds, which are
second mortgage, arc not due for thirty
Years, and it is not improbable that the
value OF the services to be rendered TO
the Government during that period Will
constitute u sinking fund sufficient for
their redemption a. maturity.
2d-'rHE FIRST MORTGAGE BONDS
The Government permits the Company
to issue its own Mortgage Bonds at the
same time, and on the same terms, and
for the same amount and by special -1ct
Of Congress These bonds Of tie Compang are
made FIRsr MORTGAGE on the entire
line and property of the road, the Gov
crnmcnt bonds 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
3-TIIE LAND GRANT While this is
certainly munifcent at the same time ii
is most advantageous 10 the Govern
ment, for without it, all its own lands
would remain almost worthless 1t is
donation OF every alternate section for
20 miles on each side of the road, or
l., 500 acres per mile, and amounts to
2o, 032, 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
sidered equal to any in the world for
agricultural purposes Hon. L, ID Mans
field, the learned Commissioner of Sta
,tistics for tue State of Ohio, estimates
that at least 100000 acres will be
available to the Company within q mod
crate length of time. and that it is far
within hounds to estimate this entire
grant at 81 % an acre, or $50, 900, 900
The Illinois Central has realized more
than four times this sum from q similar
grant. s
REcArITyI- arioN, CT MEANS FOR I.565
-bsrav MILES -=Aiz5
Q. s. nds, equal to money s4i 2os.o Q
First Mrrgage Bonds .-....-..-. 4i.9oS. OOo
Land grant, 2o,e32, 600 acres say 3o,ooo,ooe
11i--.5r72s r soz sA zsis.4i6.ooe
equal TO n cost of nearly $4,000 per
mile. which is believed to be q liberal es
innate. This does not take Into the &C
count the value of the right of way and
material, the stock subscription already
paid ia or to be paid in the future, or
the present discount at which the bonds
are offered, as they are expected soon to
Sbea At par.1 A $1,000 q .@gWn
THE ISrEREsT os THE BOWS u more
than provided for by the net eaxsings of
the various sections of the road. as they
are completed On the sos msies. On
which the ears are now running west
from Omaha the receipts for the fsst
two weeks in May were sl1, ooo nnd as
= -