Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1872-09-11
FINANCIAL.
LAND GRANT RAILROAD BONDS.
TJJE WORLD

The BEST SECUklI 1 lN itiD "oiD'
Among the mu'titudnous securities, which arc
pressed on the attention of the capitalist, none
offer such tangible and reliable certainty as inc
carefully-selccted bonds of bona hde hslireau
Companies, holding Land Grants from the UNI
ted States Government.
In addition to the advantages, which an ordi-
nary First Mortgage Bond of Il successful rail-
road presents to the INVESTOR by It's hrst-ciass
security and its ready convertibllty nta any time,
into cash, q Land Grant Railroad bohu ole!s
the nearest possible approach TO absolute sccuri-
itv. hv its being represented not on y, by com
Melted aud equipped road, but BY the additional
pledge of lands at least equal IN value 10 inc
amount of the bonds issued.
The effect of this is, to place the bonds IN the
hands of shrewd capitalists-men who look TO
security above everything, and of this no great
or evidence is necessary, than the case OF the IL
linois Central Railroad Company. by whose
owners the State of Illinois has in the course OF
few years, not only been built up and popu-
lated, but has also been freed from debt, con-
verting that State from barren waste into one
of the most hourishing States in the Union, and,
at the same time, placing the securities OF that
Company among the most tarortc on the Mar
kets of the World.
Many of the companies whose roads are now
in course of construction, own land grants on
small scale but there arc about Il dozen Com
pan:es holding lands to q very large extent,
prominent among which we note the st. Joseph
and Denver City RAILROAD Company, to which
association belong 1,7O,HO acres of the finest
lands in Kansas and Nebraska
This road is located in Missouri, Nebraska ana
Kansas, the progress of the two former "l when
States is too we'll known to require further allu-
sion thereto.
Kansas, which is the nearest and most prom
ising State beyond the Missouri border, Is rapid
ly tiling up with hardy agricultural settlers,
and there is every indication, that it will soon
,,,F, In
in the Union. Many colonies, both from the
East and Europe, are locating in the State, and
thrifty and growing villages are sprlnglng up IN
every direction, the lands surrounding them be-
ing quickly purchased and occupied by Farmers
and Stock-raiscrs. The climate Of kansas Is
mild and agreeable; the winters are short and
snow seldom falls to any considerable depth
the soil is adapted to the cereals and all the
fruits and vegetables of the Eastern States; hemp
and sorghum are common crops, ana cottIh mas
been raised in South Kansas. Eastern Kansas
presents succession of rich prarles, fertile val
teys, grass-covcred hills with An abundance of
yetloW oak, black Walnut, elm, hickory, syca-
more, Eastwood and other timber, along the
streams The middle is more thnly wooded,
but the west has many extensive tracts OF forest,
the best requisites Of the finest grazing country.
The more important mineral products are gran
itc. gypsum and coal. The entire area Is 81
GOO 600 acres. or enough to make eleven States
of the size of Massachusetts.
From this, it is evident that the st. Joseph and
Denver City Railroad Company has even bet
ter prospect, than the Illinois Central K. 4.
Company ever had, AS not only by its construc-
ton it becomes the Middle Route from the At
lantic to the Pacific Ocean, but, by its cutoff
lie from St. Joseph to Fort hearncy, 1t secures,
from the start, all the passenger and freight
traffic that i: can move, furnishing thereby, ire
spective of the Land Grant, undenabe security
to the bondholder When to this, is added the
fact that the other Land Grant Railroad Com
panies have sold their lands at all sorts OF prices
from maximum Of Sl4 per acre down to q min :.
imum of 81. Is per acre, it will be seen that, if
this Company should realize only 81 per acre
for their lands, without taking into any account
the profits of their traffic, their l,7n,oOJ acres
will produce at least Sl,5UuUn above their
mortgage which is only So, 5U, uNU.
The road, which is being most substantially
and thoroughly built and is being rapidly hur-
ried to completion, will at once form the most
important link in the great railroad system OF
the United States 1t will shorten the time and
distance between San Francisco and the cities OF
the East, and is of special Importance to the
traveller from the Pacific Slope, who desires to
reach st. Louis any part of the country lying
south or southwest of that rapidly-growng city.
immediately on its completion, 1t is destined to
receive large share of the bus mess gong East
or West beyond the Missouri River, and Its
manager. have shown wise forests ht, in equip
ping the line with an abundance OF rolling STOCK
of all kinds to meet the demand that Is sure to
arise.
That the great advantages of this road have
been appreciated by capitalists, Is shown by the
rapidity with which its bonds have been taken
up. Only limited amount of them remain! I'M
sold and are looked on, rs an investment 81 the
highest order The moneys received from the
sale of lands, form sinking fund for the re-
dempton of the bonds, and the prospect Is that
long before they fall due, the sale OF the lands
will accumulate sufficient funds to meet them
without trenching in any way upon the business
Of the road
The interests Of the bondnoldcr have been
guarded in every shape and way. The bonds
have thirty years to run from May, 900 ana
are payable IN gold in the City of New York.
They bear interest at the rate Of Eight per ct.
per annum, payable in Gold semi ANNUALLY,
free of tax on the 18th days OF Feb and Au-
gust, in New York, London, or tranktort-on-
Main at the option Of the holder, without notice,
and in the currency of the country in which the
Coupons are presented. Although these are
coupon bonds they NAV be registered in the
owners name with the Coupons on, or they can
be converted into registered bond by the sur
render Of the Coupons, and the interest paid to
the registered owner ut any of the three points
where the Coupons are payable.
The management of this enterprise Is IN the
hands of thorough practical men, and the FL
nancia Agents are the well-known, experienced
banking firm of Tanner Co., II Wall Street.
New York.
Altogether it is believed that no loan was ever
offered in this market which combines every ell
ement of security with such high rate of in
terest and it is certain that Capt. tsiists do not
often have the opportunity of placing Their mon
ey, for so long a time on security, producing
more than eight per cent. interest LII
gold. o
These bonds are of the denomination of $780,
$500 and $1,000, and are tor sale nj %! and nc
crued interest, in currency.
The agents for their sale in this city are Mcssrs
w. ID. CORSE Il CO..
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