The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-02-05
UNION PACIFIC RAILROAD CO.
AND
Central Pacific Railroad Go,
FIRST MORTGAGE BONDS.

This great enterprise is approaching compile
tion with rapidity that astonishes the world
Over fifteen Q5O0) hundred mites have been built
by two (2 powerful companies: the Union
Pacific Railroad, beginning at Omaha, building
west, and the Central Pacific Railroad, begin
ming at Sacramento, ana building east, until
she two roads shall meet. Less than two hun
dred and fifty miles remain to be built. The
greater part OF the interval Ia now graded, and
it is reasonably expected that the through
connection between San Francisco and New
York will be completed by July l.
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 ana
control OF what when completed, will be one
and the only grand Railroad Line connecting The
Atlantic and Pacific coasts.
One Hundred and Ten Million Dollars
(SllO 0OO, ,00O) in money have already been ex-
pended by the two powerful companies en-
gagged in this great enterprise, and they Will
speedily com pIete The portion yet to be built
When the United States Government found 1T
c pecessaFy 10 tn eveop and protec its @
interest, IL gave the compar les authorized to
build IL suSn ample AID as sh011a nn rehder 9h Its
ernment aid may be briefly summed up as
follows -
First. The right OF way and all necessary
timber and stone from pablo domain.
Second II makes q donation OF 1880 acres of
land to the mile, whicn, when the road Is COM
pieted. Will amount TO twenty-three million
3 goo COO acres, and all of it within twenty (20)
Third II loans the companies fifty million
dollars $780, OO0,OOC, for which 1t takes second
The Government has already loaned the
Union Pacific Railroad twenty.tour million
and fifty. eight thousand dollars (S24, ,05S 000)
and TO the Central Pacific Railroad seventeen
million six hundred and forty-elght thousand
dollars (sl7, ,6iS. .eOO) amounting In all to forty
II ifnr1 nd
dollars (S4l, FOG 0O0).
The Companies are permitted to issue their
OWE First Mortgage Bonds to the same amount
rs they receive from the United States, and no
more. Tue companies have sold TO permanent
Investors about (Si0 00O) forty million dollars
Of their First Mortgage Bonds. The companies
have already paid in Qncluding net earnings
Sscramento city and San Francisco up
wards OF 1926 00o OO0) twenty-five million dollars
Of capital stock.
WHAT Is THERE YET TO BE DONE?
In considering this question 1t must be re.
Numbered that all the remaining iron to finish
the road is contracted for, ana the largest por-
Gon paid for and now delivered on the line OF
the Union Pacific Railroad and the Central
Pacific Railroad, and thatthe grading lsa
MES TO FINISH THE ROAD?.
First They will receive from the Government
as the road progresses about S9,0OO.OO9 addi-
second. They can issue their own First Mort
gage Bonds for about 80 600 900 additional.
Third. The companies now hold almost all
the land they have up to this time received
from the Government; upon tho completion of
the road they will have received In all % 100000
acres, which at $3.50 per acre would be worth
In addition to the above the net earnings of
the roads and additional capital, II necessary,
could be called in TO finish the road.
WAY BUSINESS-ACTUAL EARNINGS.
No one has ever expressed doubt that as
soon as the road is completed It's through busi-
ness will be abundantly prontable.
Gross earnings of the Union Pa
cidc Railroad Company for ste
months, ending January LIST, 1869,
rSe sIs earnings Of Central Pacific '''''''''
Railroad, for six months, end
Ing January lst, 1863 we GeS 81 100000 Eold
Expenses. wy Rolo
An''' '''''"'''''''''''' 100000
Net profit OF Central Pacific Rail-
rosd. after paying all interest
and expenses for six months..... $75O.0OO gold
The present gross earnings OF the Union aud
Central Pacific Railroads are 81 100000 monthly
now LARGE A BUSINESS IS IT SAFE TO
PREDICT FOR THE GREAT PACIFIC
We Would give the following facts derived
RaiIroads and general iniormation:--
Ships going from the Atlantic
around Cape Horn, l00....."......... &c, 900 TONS
Steamships connecting at Panama
with California and China, 55...-"l20000
Overland Trains, Stages, Horses,
Here we have two hundred aud Unity thou
sand tons carried westward, ana experience
has shown that in the last few years the return
passengers from California have been nearly
MS numerous as those going.
HOW MANY PASSENGERS ARE THERE ?
We make the following estimate:-
mo Steamships (both ways) 70 O0O (aetual for '6s
zoo Vessels OOO estimated
Overland lOOOOO
Number per annunn.. 900
Present price (averagtng hall the cost of the
steamshlps). for both passengers and tonnage,
gives the following result
IVA 900 passengers al 400 900
460 600 TONS rated at 81 per cubic toot. l66i0000
$33 100000
Basing calculations upon the above figures
without allowing for the large increase OF bust.
ness, which can safely be looked for, then esti-
mate the running expenses at at one one half and we
paying the interest on the First Mortgage
Bonds and the advances made by the Govern
ment would leave net annual income of
t9,OO0oOO over and above all expenses and
interest
The First Mortgage Bonds OF the Union
Pacific RaiirOrd Company and the First
Mortgage Bonds OF the Central Pacific Rail-
rOad Go. are both, principal and interest,
payable In gold coin; they pay six per cent.
Interest In gold coin, and Iun for thirty
years, and they cannot be paid before that
time without the consent Of the holder.
First Mortgage Gold Bonds OF the Union
Pacific Railroad for sale at par and ac-
crued interest, aud First Mortgage Gold
Bonds or Central Pacific Railroad at lO3
and accrued interest.
DE HAVEN & BRO,