The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1870-11-29
J: EDGAR THOMSON, err,.,0ou
CHARLES i. EROST- IIusIeeS
Interest peyable May and November.

Taking the average earnings OF the railroad per
mile even at the present time, when the work OF the
roau is oelng performed on disconnected portions
ana computing for the whole distance OF i70 miles at
lne same rate we obtain an aggregate OF $3.50 for
gross annual returns. Allowing fifty per cent for
operating expenses will be LIBERAL estimate until
the lapse OF time shall have rendered new iron and
rails nt tcessary, the result-net s425 OOO
TO pay interest on bonded debt OF S2I 900 per mile
or more than twelve per cent on the amount OF the
From this exhibit 1t appears that, even at the pre-
sent moment, holders OF the seven per cent mort
gage bonds are amply secured. But tt must be
borne in mind that at this time an interval OF forty
miles separates the two portions OF she road which
are IN operation and therefore that freight moving
llngton, Cedar Rapids, and Minnesota Railroad line
being diverted for through transportation over con.
necune 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 tra-
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 inc position
We may assume, therefore, from the above exhi-
bit or the existing traffic. that the following esti-
mate will represent the income accruinp On the
cember:- " ~
Receipts on 10 miles from Burlington to
Ceoar Falls. $4,000 per mile ......3... 81 356 600
Operating expenses at 80 per cent annual
rate 1or 1rst hve years. ............... 67s 900
Net income. ;....:...................... s67sOOO
Interest IN bonds at per cent. gold equi-
valent to per cent. currency. ....,...... 2730O0
Earnings III excess of nterest applicable
on amount OF stock, soy $4,000 per
This remarkable exhb is acconnied ,os bS tSo
character of the enterprise the country through
which 1t runs and may be explained on the follow
First. The Burlington. Cedar Rapids and Mime.
sofa railroad ls continuation OF the Chicago Bur-
lington and Quincy Railroad he best enterprise in
tne West) ana 1t traVerses, without cOmpetltion
the richest portion OF Iowa-the most fertile State
In the Unlon-and receives as tributaries the Chi
cago and Northwest, Rock Island and Pacific.
Union Pacific, Chicago, Burlington, and Quincy
minnesota Central and Rockford and Rock Island
Railroads.
Second. 1t is the first and only CON pleted Iowa
road running IN the interest Of st. Louis. Chicago
81. Paul. MaQkato, and the Great Northwest
Third II brings Chicago forty five mi es nearer to
st. Paul than ever before.
Fourth.-lt gives the only practicable route from
ST. Paul to ST. Louis, ninety miles nearer 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
immense, both from local aud through transporta-
ton. The products of the country comprise Timber
Coal, Cereals, and Cattle-all in unlimited auant.
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-
sons why the Burlington, Cedar Rapids and Minne-
railways of the land The stock OF the road has
been all subscribed TO by wealthy parties along the
line, and paid in full. The bonds held at go and
interest In currency, and are for sale ny banks and
bankers generally. The greater portion Of the whole
issue has been disposed OF in sums varying from
$1,000 to s6OoO and the class OF subscI largely
represented by Trustees of Funds, Cashiers OF
Banks and Savings Institutions Insurance Compa-
MES, aud Judlcous and permanent investors.
The bonds have fifty years to run, are convertible
at the option of the holder ntoth stock of the Com
pany at par and the payment of the pridcipal is pro-
yided for by sinking fund. The coovertpbity
privilege attached to these bonds cannot fail to
them, at 6n early day to command a market price
considerably above par. u. S Fivetwenties at pre-
sent prices +, turn only AZ per cent currency nte-
rest, while these bonds pay 81 per cent and we
regard them to be as safe ano fully equal security
to any Railroad Bond Issued; and unti thew are
placed NJ on the New YORK Stock Exchange the
rules OF which require the road to be completed we
obRate ourselves TO rebuy at any time any OF these
bonds sold by after this date at the same price as
realized by us on their sale.
All marketable securities taken in payment free OF
commission and express charges.