Ashtabula weekly telegraph. [volume] (Ashtabula, Ohio) 1853-1873, 1871-02-25


FIRST MORTGAGE BoNDs.-Some one seek
ing investments and having his, attention ar
rested by the opportunities offered by the
North Pacific Railroad Bonds, makes the fol-
| lowing inquiry through the New Yorl; Iade-
| peadeht.
Eaving n few thousand dollars that l shall
not need in my business, and being naturally
dcsiious of obtaining an investment which
will produce the greatest income consistent
| with entire safety, am led to ask you the
following questions, which shall be gald to
have you answer, either privately, or through
the columns OF the Independents;
DO you think that, as rule, dlst mortgage
railroad bonds are desirable investment? In
what do they differ from irst mortgage on
ordinary real esatey
To which the Independent replies:
| /. Thus far the first mortgage bonds OF
American railways have proved 10 he among
the very safest securities. In proportion 10
amount, they have probably shown u smaller
percentage OF less, in interest and principal
i than any other investment that has been nc
cessible to the ptoplG Such has been the his
| t0lY of railway securities. OF course, there
| have. been, exceptional cases of mismanage-
ment and loss but tar oilenen have imperfect
| title, lapscd insurance policies, and shrnkagcs
Of value rendered real estate mortgages Il bad
investment There is living principle under
| lying railway bond, which applies to very
few, II any other sccuritles--lt is:
l. Usually the solyency of railroad de-
pcnds mainly upon its, trafic !: and, as n rule
that tra!lie steadily increases as tho road
grows older and the population along It's
route becomes licher and denser, In word
the income OF Il rallroad-and hence its debt
paying ability-will ordinarily keep pace Will
the growth Of population.
Q. A railroad, once built, rapidly creates
businass which is to render 1t profitable. L
depel0pes carrying trade which did not he
fore exist, and grows much faster than the
tributary population increases in numbers.
O. A railroad usually has back Of il n strong
coruoration of capitalists and shrewd ener
getic business men, whose prohts, hnancla
, standing, commercial reputation ana otficla
positions depend upon the solVency ana sue
cess os the road with which Ihey are identih
, ed, This powerful combination OF private In
terests consiilmes a living power wLesv effort
tend constantly to-. increase The proetabienes
and soundness OF the enterprise In WHOSE in
. teresis they are enlisted.
4. Finally, after railroad is built, ever
. dollar expended in making improvements ant
y extensions, adding new facilities for. doinJ
e business, and In securing valuable alliance
!, with connecting lines, adds to the security O
"a l's nIst lhoT'ghBe Dohus, ny augmentinG' IN
producttveness and value OF the property OF
y. which these bonds are based. II Is In. thi
J. way, that u second mortgage may increase III
g safety, Of the .frst. With mortgages whic
: rest upon Improved real esiale In our. mids
y tue security sleadily delerioraes with time, a
" the improvements becomes less valuable
D. Railroads grow beitor and more prosperou
sr with age and furnish constantly increasin
!, security for the debt created in theit cOnslra
I" ton. Ii is for these reasons thal .frsf fn,oT
'c gage railroad bonds are among the very soun,
Is, securities lhat can be had