The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1870-11-26

Taking the average earnings of the railroad, per
mile even at the present time when the OF the
road is being performed on disconnected portions
and computing for the whole distance of 1IO miles at
the same rate we obtain an aggregate of ss5OOOO for
gross annual returns. Allowing hfty per cent. for
operating expenses will be liberal estimate, until
the lapse OF time shall have rendered new iron and
rails nt cessaTy, the resultnet earnngs-is 1925 0OO
TO pay interest bonded debt Of S20O 900 per mlle
or more than twelve per cent on the amount OF the
mortgage BONDS.
From this exhibit it appears that, even at the pre-
sent moment, holders OF the seven per cent. mort
gage bonds are amply secured. But it must be
borne in mind that at this time interval of forty
miles separates the two portions OF the road which
are in operation, and therefore that freight moving
eastward pays tribute now only to half of the Bur-
lington, Cedar Rapids, and Minnesota Railroad line
being diverted for through transportation over con-
Meeting lines When the existing gap is finished
which, it is assured, will be by the 1st OF December
goods which now pass over one-half will then ira
verse the whole OF the line thereby doubling the
present receipts of the road, even assuming that no
increase OF the gross amount transported takes
place. glance at the map will show the position
We may assume, therefore, from the above exhi-
bit OF the existing traffic. that the following esti-
mate will represent the income accruing on the
completion of the enterprise after the 1st of De-
cember:-
hecepts on 10 miles from Burlington to
Cedar Falls, $4,000 per mile 81 356, 600
Operating expenses at 90 per cent annual
rate for first I'VE years. s)............... CTS, 600
Net income Observation-Disclosures. e67S,OOO
Interest On bonds at per cent. gold, equi-
valent to S per cent. currency .......4.. 27s,OOO
Earnings III excess of interest applicable
10 ulViueHu on STOCKS, being IL per cent.
on amount OF stock, say $4,000 per
This remarkable exhibit is accounted for by the
character OF the enterprise and the country through
which 1T runs, and may be explained on the follow
ing ground:-
First. The Burlington, Cedar Rapids and Mime.
sofa Railroad is continuation OF the Chicago, Bur-
lngton, and Quincy Railroad Uhe best enterprise in
the West), and it traverses without competition,
the richest portion OF IOwa-the most fertile State
in the Union-and receives as tributaries the Chi
cago and Northwest, Rock Island and Pacific,
Union Pacific. Chicago Burlington. nj
minnesota Central and Rockford and Rock Island
Second 1t is the first and only completed Iowa
road running in the interest of st. Louis, Chicago
St. Paul, Mankato, and the Great Northwest
Third. II brings Chicago forty-fye mics nearer to
ST. Paul than ever before.
Fourth:-It gives the only practicable route from
st. Paul to st. Louis, ninety miles than any
other route. Its road-bed is in the finest cereal.
bearing valley in the world
points, viz:---St Paul, st. Louis, Burlington, and
Chicago, and runs through the finest region in the
sSro9
tlon The products OF the country comprise Timber,
Coal, Cereals, and Cattle-all in unlimited quanti-
ties. The population of the surrounding districts,
as shown by the census returns of the last three
years, is immense, and increasing at the rate OF
almost twenty per cent per annum. This rate OF
increase must be greatly accelerated by the influx
OF wealth and population which railway construction
The above statement comprises some OF the rea-
soDs why the Burlington, Cedar Rapids and Mime
railways of the land. The Stock of the road hi mas
been all subscribed to by wealthy parties along the
line, and paid in full The bonds are held at 9O and
interest in currency and are for sale by banks and
bankers generally. The greater portion of the whole
issue has been disposed of in sums varying from
$1,000 to s50OO and the class of subscribers largely
represented by Trustees Of Funds Cashiers OF
Banks and Savings Institutions, Insurance Compa-
MES, and judicious and permanent investors.
The bonds have fifty years to run, convertible
at the option Of the holder into the stock of the Com
pany at par and the payment OF the principal is pro-
vided for by sinking fund.- The convertbilty
privilege attached to these bonds cannot fail to cause
them, at an early day, to command market price
considerably above par. U. S. Fve-twentes at pre-
sent prices return only ~ per cent. currency inte
regard them to be safe and fully equal as security
to any Railroad Bond issued; and until they are
placed upon the New York Stock Exchange the
rules of which require the road to be completed, we
oblgate ourselves to rebuy at time any of these
bonds sold by after this date at the same price
realized by US on their sale.
All marketable securities taken in payment free OF
commission and EXPRESS charges