New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-09-02
THE VALUE OF LAND GRANTS
TO RAILROAD COMPANIES.

In offering the remainder of the FIRST Mortgage
Sinking Fund Land Grant Bonds of the st. Joseph and
Denre City Railroad Company to the public, we would
respectfully call their attention to few facts In re-
gard to the value of Land Grants. especially where
the lands granted are located in fertile section Of
country. The Illinois Central Railroad Company
was the first to receive Government aid in the
shape of Lands and in 1850 received grant of
2,595,OOO acres. Of these lands the Company have
sold 800 acres and realized for the same 49OO
$685. The remaining 1850 acres are selling at
an average of $12 so per acre, equal to $5,2559O5
This would make the total value of the Illinois Cen
trail Land Grant equal to thirty million one hundred
and 6ty-sir thousand seren hundred and eighty-eigt
dollars $780, 156 1885, largely in excess of their bonded
debt. This Land Grant is located in prairie country
and at the time the grant made the land was con-
sidered among the choicest in the West for farming
purposes These facts show the great value OF land
grants to railroad corporations. The lands Of the
St. Joseph and Denver City Railroad Company. 80
far as their formation is concerned not in the least
inferior to those of the Illinois Central Company while
their fertility and adaptahity for farming and other pur-
poses are equal not superior to any lands in the Hest
ern country The line of the st. Joseph and Denver
City Land Grant comprises old and favo1ite route
for wagon travel before the road was projected AS
natural consequence, the country is well populated,
at many points thickly So and the land cultivated
and developed. The st. Joseph and Denver City
Company therefore has the advantage of populated
and cultivated country, with established high
price for it's lands In other words the st. Joseph
and Denver City Railroad Company will
realize at once the same benefits and
profit from its land grant which would be
realized from Companies owning lands in older
States At the present price of the Illinois Central
Companys Lands 1912 so per acre., those of the St.
Joseph and Denver City Company would realize q
total of Sis, $50, 900; and if we take into con-
sideration the future growth of the Western
Country and the natural attractions which these
lands offer, then, indeed, the amount eventu-
| ally realized must largely exceed this sum-
Yet these Bonds, which we are now offer
ing are backed by such security as this to
say nothing of their being q first mortgage on
trunk line which shorens the distance between the
Atlantic and Pacific 2S2 miles, which must naturally
have large traffic, and will eventually take rank
with the highest-priced railroad bonds the New
York Stock Exchange. The liberal daily sub
scrptions to this loan steadily decreasing the
amount unsold, and while they are offered
for the present at CIT aud accrued in
| terest, the right is reserved to advance
the price at any time without notice. The large
amount of $40 Bonds which the Government is able
to pay off by the recent negotiations Of $20OOOOOO
per cent Bonds must stimulate largely the invest
ment demand for the per cent Gold Bonds of the
St. Joseph and Denver City Railroad Company in
the immediate future. In view of thls and also the
fact that it is rarely bond is offered to investors
which combines all the requisites of large income
and the most perfect safety and future profit, in
vestOrs desiring to participate in the division Of the
remainder of this loan will best promote their inter
est by acting promptly, as the total amount of the
issue was only $55OOOOO for the payment Of ~hch this
enormous property " specifically pledged. The Bonds
are in denominations of $1,000, $500, and 800, and
are receivable at par and accrued interest in pay
ment for the Companys land sales. Circulars maps,
and documents relating to the Loan, furnished on
application. THOUGH ACTING AS AGENTS FOR THE
SALE OF THIS LOAN, OUR FIRM BUY AND SELL IN
THEIR REGULAR BUSINESS THE BONDS OF THE ST.
| JOSEPH AND DENVER CITY RAILROAD COMPANY,
THOSE OF THE EASTERN DIVISION BEING NOW
| QUOTED AT 1O2 AND ACCRUED INTEREST. THESE
WERE ORIGINALLY PLACED BY Us AT on.
| TANNER g. Co., Bankers, No. II Wall-st
JAY COOKE g. Co.