New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-06-27
BANKING AND FINANCIAL.
THE CENTRAL RAILROAD OF Iowa,
2:}j miles in length now nearly completed, 1900
tuns of iron being laid this season.

miles III length now nearly cOnpltUcu, l-,UOV
tuns of iron being laid this season.
It's FIRST MORTGAGE BONDS
We believe that no class of investments has been
found so uniformly safe and profitable as First
Mortgages on completed roads
OF 235 companies operating $4,000 miles of railroad
in the Northern and Western States, which there
is bonded debt of $6G2 100000, we know of but two
that do not pay their interest regularly.
Several railroads were built before the country
around them was sufficiently settled to give them
adequate business which for a short time failed to
pay their interest; but the building of the roads
soon brought population that made them profitable
when the payment of interest was resumed, and the
Bonds proved perfectly good.
SECURITY.
In selecting new railroad bonds for purchase the
investor should ask, First Is the road needed
Second l. the country it is to through produc-
tivet Third: Are its connections important
Fourth Are its associations with other companies
such rs 10 give it strength Fifth, and more than
all : Is the company engaged III its construction
strong enough to carry it through If all these
questions can be answered in the affirmative there
can be no doubt about the security OF a first mort
gage 70 the amount of $4,000 per mile. The average
price at which good reliable per cent gold bonds
can be bought such road is %, and ut this rate
they pay about One-third more interest than the
bonds of the old roads.
We believe that the CENTRAL RAILROAD OF. iowa
fulflly all the conditions for good Bond that we
have named above.
1t is the only link wanting to connect the two great
cities of st. Louis and st. Paul.
1t runs through the garden of Iowa, where all the
completed railroads have proved very profitable.
1t is built in the interest and partly with the
money of the same powerful parties who are building
a great system of roads that center at ST. Paul. which
will give it a large traffic
Three thousand men are at tcork the road, and its
completion this gear is not Doubted.
1celre thousand taRs of iron are going to1card and
the track is being laid at the rate of nearly mile day
The Company is made up of bankers leading rail-
road capitalists and Others who put large amount
road, aud who have credit for prudence in making
their investments.
PROFIT.
One thousand dollars invested in Government
Sixes-say '61's (which may be paid off in two OF
three years-at 10 per cent premium, yield per an
mum q fraction over 5 per cent income. One thou
sand dollars invested in Government Elves yields
less than A per cent income while the same amount
invested in per cent railroad bond at IS yields n
per cent all in gold. There is thus no doubt of the
profit of selling Governments while the premium is
still large and buying first-cass railroad bonds. 1t
is only question of security. But if the road is
tirely finished and paying dividends on its stock
of its bonds be bought that viii yield "A per
cent in gold per annum. The Railroad Journal of
May rs gives the following the market price of the
bonds of some of the leading railroads.
Pennsylvania Railroad currency Gs...........1Ol2
New-York and New-Haven currency 6s.---.- %
Hartford and New-Haven currency ISL. %
Connecticut River currency Gs.-............. rs
Camden and Amboy currency 6s.. %
Lehigh Valley currency 6s.......-............ %
II will be seen that these mortgages now pay but
average of about per cent in gold; and as the Gov
eminent tax of per cent is deducted by the several
companies the net income is about one-third of one
per cent less
SALRs OF BONDS.
About one-hah of the bonds of the Central Rail-
road of Iowa have already been sold.
As we have thoroughly examined into their merits,
and have no doubt of their security we take pleas
ure in recommending them to our customers and the
public They continue for sale at the original price
of IS and accrued interest in currency.
We Beliere there ,ciu be no more favorable time 10 sell
Governments and bay really frsolss railroad securities
such as hese-tkan the present.
JAY COOKE g. Co. 20 Wall-st.
Pamphlets with map, may be obtained, and sub
scriptons will be received at the CoMPANTs
OFFICES, No. 81 Pne-st. New-York ut offices of JAY
COOKE d CO., New-York, Philadelphia and Wash
ington the BANK OF NORTH AMERICA, and banking
houses of HowEs u MACY Ncw-York.
W. b. SIArruCK Treasurer.