Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1867-08-22
THE UNION PACIFIC RAIL ROAD
THEIR FIRST MORTGAGE BONDS AS AN
INVESTMENT.

The rapid progress ofthe Uuion Pactac Rail
road, now building west from Omaha, Nebras,
ka, and forming, with lie 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 Ia, Are these bonds secureY Next,
SAre they aprodtable investment :" To reply
in brief:
let The early completion of the whole great
line TO the Pacific is IA certain as any future
business event can be. The Government grant
oil 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 1t must be the only line connecting
the Atlantic and Pacific: and being without
competition, 1t can maintain remuneratiye
rates.
Sd. 4S miles of this road are finished, and
iuiiy equipped with depots, locomotives, cars,
&c, and two trains are daily running each way.
Inc materials for the remaining 90 miles to the
eastern base of the Rocky Mountains are on
hand, and 1t is under contract to be done in
September.
4th. The net earnings of the sections already
finished are several times greater than the gold
interest upon the First Mortgage Bonds upon
snch 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 fde 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 a second
| lien as its security This amount upon the first
5l7 miles west from Omaha is only $1,000 per
mile,
! eth. The fact that the L. s. Government con-
siders a second lien upon the road 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 first mortgage
| upon such property as this the very best seCu-
| rity in the world, and who sell their Govern
ments to re-invest in these bOnds-tAus secur-
| ing greater interest.
| 9th As the Union Pacific Railroad bonds are
offered for the present at 80 cents on the dollar
and accrued interest, they are the cheapest Sc.
curity in the market, being more than 10 per
cent. less than o. 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, Nor Nassau ST..
Clark, Dodge, & Co., Bankers, 81 Wall St..
John j. Cisco B Son, Bankers, No 80 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 sent by mail from the Com
pany's Office, No, % Nassau Street, New York,
| on application. Su .Cribers will select their
| own Agents in whouhthey have confidence, who
alone will be responable to them for the safe
| delivery of the bOnds.
JOHN j. CISCO, Treasurer,
may30d&w3m New York