Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1872-09-14
FINANCIAL.
LAND GRANT RAILROAD BONDS.
THE BEST SECURITY IN THE WORLD.

|
Among the mutitudinous securities, which are
pressed on the attention of the capitalist, none
offer such tangible and reliable certainty as tn e
carefully-selected bonds of bona fde Railroad
Companies. holding Land Grants from the Uni =
ted States Government.
In addition to the advantages, which an ordi-
nary First Mortgage Bond of successful rail-
road presents to the Investor, by its frst-class
security and its ready convertibility at any time
into cash, Land Grant Railroad Bond offers
the nearest possible approach to absolute securi-
ity by its being represented not only, by a com
pleted aud equipped road, but by the additional
pledge of lands, at least equal in value to the
amount of the bonds issued.
The effect of this is, to place the bonds in the
hands of shrewd capitslsts-men who look to
security above everything, and of this no great
er 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
a 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 favorite on the Mar
| kets of the World.
in course of construction, own land grants on
| small scale, but there about dozen Com
panies holding lands to very large extent,
prominent among which we note the st. Joseph
| V,
association belong LOO, 600 acres of the finest
lands in Kansas and Nebraska.
| This road is located in Missouri, Nebraska and
| Kansas, the progress of the two former of which
States, is too well known to require further sllu-
| sion thereto.
Kansas, which is the nearest and most prom
| ising State beyond the Missouri border, is rapid
| ly filing up with hardy agricultural settlers,
| and there is every Indication, that it will soon
possess one of the most productive populations
in the Union. Many colonies, both from the
East and Europe, are locating in the State, and
thrifty and growing villages are springing up in
every direction, the lands surrounding them be-
| ing quickly purchased and occupied by Farmers
and Stock-raisers. The climate of Kansas is
mild and agreeable; the winters, are short and
the soil is adapted to the cereals and sll the
fruits and vegetables of the Eastern States hemp
| and sorghum are common crops, and cotton has
been raised in South Kansas. Eastern Kansas
presents succession of rich prairies, fertile val
| legs grass-covered hills with al abundance OF
yellow oak black Walnut, elm, hickory, syca-
| more, Eastwood and other timber along the
| streams. The middle is more thinly 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
| lite, gypsum and coal. The entire area is 81
| G00, 900 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 r. r.
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 Kearney, it secures,
| from the start, all the passenger and freight
| traffic that it can move, furnishing thereby, ire
| spective Of the Land Grant, undeniable 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 min l.
imum OF 81 Is per acre, it will be seen that if
this Company should realize only "a per acre
for their lands, without taking INTO any account
the profits of their traffic, their 100000 acres
will produce at least Sl,50O,000 above their
mortgage, which is only S5,5OooOO. .r
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 tho
traveller from the Pacific Slope, who desires to
reach st. Louis or any part of the country lying
south or southwest of that apidly-grown1g city
Immediately on its completion, it is destined to
receive a large share of the business going East
or West beyond the Missouri River, and its
managers have shown wise foresight, IN equip
ping the line with an abundance Of rolling stock
of all kinds to meet the demand that is sure to
arise.
been appreciated by capitalists, is shown by the
rapidity with which its bonds have been taken
up. Only limited amount of them remain un-
sold and are looked on, as an investment OF the
highest order. The moneys received from the
sale OF lands, form sinking fund for the re-
demption 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.
Al
guarded in every shape and way. The bonds
have thirty years to run from May, 1870 and
are payable in gold in the City of New York.
They bear interest at the rate of Eight per ct.
per annum, payable i'm Gold semi annually
free Of tax, on the 18th days of Feb. and Au-
gust, in New York. London, or Frankfort-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 may be registered IN tho
owners name with the Coupons on or they can
be converted into a registered bond by the sur
render of the Coupons, and the interest paid. to
the registered owner at 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
nancial Agents are the we'll known, experienced
banking firm of Tanner 81 Co., IL Wall Street.
New York.
Altogether it is believed that no loan was ever
offered in this market which combines every el-
ement of security with such high rate of IN
terest, and it is certain that Capitalists do not
often have the opportunity of placing their mon-
ey, for so long time On security, producing
more than eight per cent. interest III
gold.
These bonds are of the denomination of 500,
$50 and $1,000, and arc tor sale at 975 and &C
crued interest, in currency.
The agents for their sale in this city are Mcssrs
w. ID. CORSE e. CO..
81 s. SO King st.
who confidently recommend them as first-class
security, and who have already sold large
amount to some of our most prudent and saga
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