The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-02-19
UNION PACIFIC RAILROlG co.
AND
Central Pacific Railroad Go,
FIRST MORTGAGE BONDS.


pletion with Apidity that astonishes the
world. Sf1teen. ueoO) huaored mites have been
bnilt by tw O (S) powerful comuanies: the
Union Pacidc Railroad, beginning Mt Omaha,
building @est, and the Central Pacific Rail-
foad, beginning at Sacramento. ana building
east, dntll the two roads shall meet Less than
two hundred miles remain to be built The
greater part OF the interval Is now graded, and
II is reasonably expected that the through
connection between San Francisco and New
York will be completed by Junel.
AS the amount of Government aid given to
each is dependent upon the length OF road each
shall build, both companies are prompted TO
great efforts to secure the construction and
control OF what, when completed, will be one
Ogad the only grand RaiIrodd Line connecting The
Atlantic and Pacific coasts.
One Hundred and Twenty Million Dollars
tsl9OOOO O0O) in money have already been ex-
pepded by the two powerful companies en-
gagged in this great enterprise, and they wlll
speedily complete The portion yet to be built
When the United States Government found it
rece ssary TO secure the construction OF the
Pacific Railroad, to develop and protectits own
interests, 1t gave the Companies authorized to
build 1t such ample aid as should render its
speedy completion beyond doubt. The Gov
ernment aid may be briefly summed up as fol-
lows-
E1rSt- Vn6 rlRHb Ol way anu dll ueceSSAry
timber and stone from public domain.
Second. 1t makes q donation of 1880 acres of
land to the mile, whicn, when the road Is COM
pleted, will amount TO twenty-three million
J23OOO O00) acres aud all of 1t within twenty (20)
mil es of the Railroad.
Third II loans the companies fifty million
dollars $3.50 0OO 000), for which it takes a second
hen-thus pledging this sum to the Company's
First Mortgage Bondholders as additional
security.
The Government has already loaned the Union
Pacific Railroad twenty-five million nine hun
dred and seventy.eight thousand dollars
(s25 1913, ,00O) and to the Central Pacific Railroad
eighteen million six hundred and four thou.
sand dollars (Sls,60 90O. amounting In all to
forty-four million five hundred and eighty-two
Thousand dollars (Si4, $50 000)
The Companies are permitted to issue their
own First Mortgage Bonds to the same amount
as they receive from the United States, and no
more. The companies have sold to perma-
nent investors over ts4000O,OOO) forty million
dollars of their First Mortgage Bonds. The COM
panies have already paid ia Cincluding net earn
ings not divided grants from State OF ofCalifornia,
and Sacramento city and San Francisco), up
wards of 1895 900 0O0) twenty-five million dollars
of capital stock.
WHAT is THERE YET TO BE DONE?
In considering this question, IL must be re.
membered that all the remaining iron to finish
the road Is contracted for, ana the largest por-
tion paid for and now delivered on the line Of
the Union Pacific Railroad and the Central
Pacific Railroad, and that the grading Is almost
finished.
WHAT RESOURCES HAVE THE COMPA-
MES TO FINISH THE ROAD?
First They will receive from the Government
atNNt1t
Second. They can issue their own First Mort
gage Bonds for about SO. 600. 600 additional.
Third. The companies now hold almost all
the land they have up to this time received
from the Governments; upon the completion OF
the road they Will have received in all 49, 900 900
acres, which at $3.50 per acre would be worth
S34 100000.
In addition to the above the net earnings of
the roads and additional capital If necessary,
could be called In to finish the road.
WAY BUslNESS-ACTUAL EARNINGS
No one has ever expressed q doubt that as
soon as the road is complsted its through busi-
ness will be abundantly profitable. AS every
year brings an influx of population, the local
traffic of the great Pacific Railroad will have a
steadily increasing value. At pre-, ent Its trans
portation for the Government and the mining
regions Is the chief source of its already large
revenue. As these mining regions are pene-
trated the earnings will be greatly increased,
and the various branch lines that will soon be
constructed will be most valuable feeders of the
main trunk.
The earnings OF the Union Pacific Railroad
for the year ending June 80, 1868, were si,248,-
OfC73 net earnings after paying all expenses
and interest, s47S, ,4O3' SO.
Gross earnings for ste months, ending January
], 1869, were upwards OF $4,000 OOO
The earnings of Central Pacific
Railroad for six months, end
ing January LIST, 1869, were,.... 81, ,760 600 gold
Expenses ...'....'''''"''' UUUUJ GlbI
'A''' ''''''''''''''''''' 100000 "
Net profit OF Central Pacific Rail-
road, after paying all interest
and ex penses, for six months. $780, 900 gold
The present gross earnings of the Union aud
Central Pacific Railroads are 81 100000 monthly,
The First Mortgage Bonds Of the Union
Pacific Railroad Company and the First
Mortgage Bonds OF the Central Pacific Rail.
road Co. are both, principal and interest,
payable in gold coin; they pay six per cent.
interest in gold coin, and run for thirty
years, and they cannot be paid before thai
time without the consent of the holder.
First Mortgage Gold Bonds Of the Union
Pacific Railroad for sale at par and &C.
crued interest, aud First Mortgage Gold
Bends OF Central Pacific Railroad at 1OS
and accrued interest.