New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-05-29
BANKING AND FINANCIAL.

THE NEW ORLEANS MOBILE AND TEXAS RAILROAD
COMPANY are building trunk line, connecting New
Orleans with Mobile on the east, and giving the
only railroad connection between the former city
and the great and most productive State OF Texas on
the west, the total distance from Mobile to Houston
being AS miles.
The Company is composed of strong Northern
capitalists who have already expended nearly ten
million dollars of their own funds in the construc-
ton of the line. They have built about 295 miles
from Mobile westward. and secured by purchase of
securities and made provision for the thorough repair
and equipment of the lOS miles constituting the
Texas division; leaving but 40 miles to be built to
complete the entire road. 1t is believed that no
other railroad corporation in the country has ever
made so large an expenditure from Its own means
before offering any of its securities TO the public
The Company now offer for sale the EIGHT PER
CENT MORTGAGE BONDS upon the Louisiana division
of 26} miles from NewO Orleans to the Sabine River
This will probably be the most valuable portion of
the whole line as it will be the only rail cOmmun-
cation by which the enormous productions of Texas
can reach the Southern metropolis
So important ~ this road considered to Louisiana,
that the State has made very liberal grants IN aid OF
the enterprise by direct donations, by Endorsement
of its bonds and by subscriptions to the stock of the
Company amounting in all to over eight million
dollars.
The Bonds now offered are of two classes FIRST
MORTGAGE BONDS to the amount of $12500 per mile,
and SECOND MORTGAGE BONDS, to an equal amount,
both principal aud interest guaranteed by the State
of Louisiana. The price of the two classes Is the
same. and subscribers can take their choice
The Bonds are only in the denomination of $1,000
OF goo EACH interest payable January and July at
the rate of eight per cent currency in New-fork or
seven per cent gold in London at the option of the
l. tl,a oh il
be registered if desired No better security has been
offered to investors. The line is a good and import
ant one aud the stockholders have proved their de-
termination and ability to carry the work to an early
and successful completion, by the very large amount
they have themselves put into it.
The bonds are largely profitable, as well as entirely
safe One thousand dollars invested in these eight
per cent bonds will give the purchaser more than
seveny-seven per cent greater annual interest than
the same amount invested in the new Government
Five Per Cents into which the Government Skies
are being funded by the Secretary of the Treasury
At the same price an per cent currency long bond
is far cheaper than per cent gold one Calculat-
ing a return to specie payments in three years, and
taking the time that the bonds of the New-Orleans
Mobile and Texas Railroad have to runs years
we find that by compromising the interest of each
every six months at per cent, an per cent cur
rency bond at 90 will give return of S264 lS more
than a Z per cent gold bond at the same prlce, or
nearly three tipcs the amount of the original invest
ment.
While the purchaser of the per cent bonds of this
Company can realize this special profit he also holds
the option of taking advantage of any temporary
advance in gold he has choice, at every separate
coupon day, of gold interest at per cent or cur
rency interest at per cent
The bonds are dated May /, 1871. The first coupon
will. therefore, be a fractional one, running from
May to Julyl The price is 90, and accrued inter
est at per cent currency from May to date OF re-
mittance. Bonds will be sent free of cost and Gov
eminent and all other marketable securities will be
taken in exchange at their best market rates, with
out charge for selling.
Information concerning the Company and the
Road, and pamphlets containing map and full de-
tails of the enterprise be obtained of the under
signed OF any of the Companys advertised agents
W. b. SHArTUCK. Banker and Financial Agent. n
o. NJ. and 7. X. r. Co., No. % Nassau-st., New-iork