Litchfield enquirer., 1870-03-10

rage tax paid in your State is over two per cent, while the United States Income Tax is .& per cent. more. You thus see that a six or seven per cent gold bond, issued by a corporation out of the State, although it may nominally pay seven, or even eight, per cent. interest, when reduced to currency will not net the holder that rate, az the loss by taxes will reduce the interest to only five or six per cent. It is, therefore, more profitable for you to hold the Air Line Bonds than 3 taxable security yield. ing as high as 911a to 10 per cent. In this connection We would mention that Depositors in Savings Banks wilt hereafter, under the present law, be obli- ged 10 pay per cent. income.tax on the interest they receive from the Bank, which 1 will tend to induce investors to seek more profitable employment for their funds.
 They are well secured. The mortgage is drawn with unusual care. The State of Connecticut is made trustee for the bond holders. Every bond is issued from the Comptroller's office and must bear his sig nature. Each bond represents twice its value in completed road, the Bonds being issued only as the work progresses. and for but one-half of the actual cash expendi- lures, as certified under oath.
 They can be registered either with. or without, the coupons. r. You will at once see the value of this feature, as so many bonds have been lost l or stolen.
 Robberies are so frequent and daring. no one feels safe with securities not regis tered
 We find about one half of those seek ing bonds, desire the protection thus af- foraed.
 The local traffic, always the most profit able, will abundantly provide for all inter est liabilities, and yield liberal returns on the capital.
 At New. Haven, the road will meet four roads. or feeders; at Middletown, two; and at Willimantic, three; besides water com munication at New Haven and at Middle. town. The line will furnish transporta- tion for the various mills, manufactures and agricultural products of the different towns through which it will pass. furnish ing facilities they have needed for more than twenty years. The effect will be to greatly develop the business along the route, which will, in return, add to the value and business of the road. At Portland the extensive. .freestone guar ries are located The revenue from this item alone will, from the start, be large, i transported with greater regularity, prompt ness, and economy by rail, than by wa. ter.
 The limits of this letter will not admit of more than 8 mere mention of the prin cipal features of the loan.
 We must omit the consideration of it's being "home investment;" of calling at tention to the known ability, energy and integrity of the officers. upon which 30 much depends in every enterprises of the advantageous location of the road, neces sarily controlling large through business; and many other considerations of interest and value; but desire, before closing, to ask your examination of the following statement, showing the profit arising from an exchange of Governments for the Air Line Bonds.
 In this calculation we allow an average premium of 10 per cent. on gold for five years, which seems liberal, considering that the present price is only about ll6, and after that period calling it par: SIG, ,000 Governments, in 20 years at $500
 per annum, will yield ................. .3l2OOO , Premium 5years, at 10 per cent, ........... 300 5 .12,sOO Less Income Tax, 5per rcent............... 600 Total revenue from s1O 1000 Governments sl1. .7Oo
 
 chase $11, 300 First Mortgage Bonds, which
 will yield in 20 years, at $79l per annum 15,S2 Interest from Air Line Bonds over Govern To which should be added the Capital in.
 creased or saved, being premium on Gov
 ernments. ...e.................. I,SoJ : Total Profit ............. st, ,42O or over 50 per cent. secured by tho OK. change, at simple interest. If we com- pound the interest, each year, tho profit will be greater, amounting to $8,342
 There is much more we would like to. mention, but will not at this time. We will add that the loan has been received with great favor, nearly all of the first $5, ,OOoa 900 being marketed, Snd that the sales are scattered over the whole State land con- siderable amounts have been taken by in vestors in other States), being taken by some of your best managed Corporations and Institutions and by careful, prudev i capitalists.
 Very respectfully,