The Cambria freeman. [volume] (Ebensburg, Pa.) 1867-1938, 1869-02-25
UNION PACIFIC RAILROAD co.
AND
CENTRAL pacific RAILROAD Comply
FIRST MORTGAGE BONDS.

This great enterprise is approaching compile
ton with rapidty that astOnishes the world.
Over fifteen (l5U0) miles have been built by
two (2) powerful companies: the Union Pa
cifc Railroad, beginning at Omaha, building
west, and the Central Pacific Railroad. begin
ming at Sacramento, and building east. until
the two roads sh II meet Less than two hun
dred and fifty miles remain to be built. The
greater part of the interval is now graded, and
it is reasonably expected that the through
connection between San Francisco and New
York will be completed by July /.
AS the amount OF Govern ment aid given to
each is dependent upon the length of road each
shall build, both companies are prompted to
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 (SII0-
600 .OO0,) in money have already been expend-
ed by the two powerful companies engaged in
this great enterprise, and they will speedily
complete the portion yet to be built When
the United States Government found it neces-
sary to secure the construction of the Pacific
Railroad, to develop and protect its own inter
est. 1t gave the companies, authorizes to build
| 1t such ample aid should render its speedy
completion beyond doubt. The Government
| aid may be briefly summed up as follows
First. The right of way and all necessary
| timber, and stone from public domain.
Second. 1t makes donation of - 500 acres
completed, will amount to twenty three million
(23,UOO ,OO0) acres, and all OF it within twenty
! (20) miles of the railroad.
Third. It loans the companies fifty million
dollars (S5o,OGo 000), for which it takes a
scond lien.
| The Government has already loaned the
! Union Paciic Railroad twenty four million
/ and fifty eight thousand dollars S24 05S, ,U0U)
/ and TO the Central Pacific Railroad seventeen
million six hundred and forty eight thousand
| 4 II L 4 > 81
| forty one million seven hundred and six thous-
and dollars (S4I. .706 000)-
/ The companies permitted to issue their
/ own First Mortga ge Bonds TO the same amount
| as they receive from the United States. I'D no
more The companies have sold to lerRan. nj
/ investors about (S4O ,0OU .0UO) forty million
dollars of their First Mortgage Bonds. The
| companies have already paid in (includng net
earnings..not divided, grants from State of Cali
/ fUrpa, and Sacramento CITY and San Francisco }
/ upwirds of 25.IO0 ,OOO) twenty-five million
dollars of capital stock.
! WHAT IS THERE YET TO BE DONE ?
In considering this question il must he re-
/ menlbered that all the remaining iron TO finish
! the road is contracted for, and the largest por
! ton paid for and now delivered Oh the line OF
the Union Pacific Railroad and the Central Pa
! ciic Railroad, and that the grading is almost
finished.
WHAT RESOURCES HAVE THE COM
PANIES TO FINISH THE ROAD2
First. They will receiAe from the Govern
ment rs the road progresses about 50 600 ,0U0
additional.
Second They can issue their own First
Mortgage Bonds for about $4,000 900 addi-
| tional.
Third. The companies now hold almost all
/ the land they have up to this time received
from the Government; upon the completion OF
the road they will have received in all D 600 :
900 acres, which at $l.50 per acre would be
worth S34 500 900.
| 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 BUSINESS ACTUAL EARNINGS
No one has ever expressed doubt that as
soon the road is completed its through busi
ness will be abundantly Profitable.
Gross earnings of the Union Pa
cfic Railroad Company for six
months, ending January l, 80,
were upwards of ....... s3,CO0,O00
The earnings of the Central Pa
ciic Railroad, for six months,
ending an. lst, 1869, were $3.50 600 I'd
Expenses. ...... $3.50 coo gold
! Interest ......... 450,G00 "