Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1872-09-05
EIJy.4.vCHHL.
LAND GRANT RAILROAD BONDS.
THE BEST SECURITY IN THE WORLD.
FINANCHNL.


Among the mutitudinous securities, which are
pressed on the attention Of the capitalist none
offer such tangible and reliable certainty as the
efully-sclccted bonds of bona fde Railroad
Companies, holding Land Grants from the Uni
ted States Government.
In addition to tie advantages, which an Ordl-
nary First Mortgage Bond of successful rail-
road presents to the Investor, by its first class
security and it, ready convcrtbility at any time,
into cash, Il Land Grant Railroad Bond offers
the nearest possible approae I'll to absolute sccur-
ity, by its being represented not only, by 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 shrcwd captaists-mcn who look TO
security above everything, and OF this no SrcHt-
or evidence is necessary than the case Of the IL
linois Central Railroad Company, by whose
owners the State Of Illinois has, in the of
| Il few years. not only been built up and popu-
| lated but has also been freed from debt, con-
verting that St2tc from II barren waste into one
of the most fouriShng States in the Union, and,
ut the same time, placing the securities of that
Company among the most fuvorite on the Mar
kctS OF the World.
Many of the companies whose roads are now
in course of construction, own land grants on II
| small scale, but there are about dozen Com
pan:cs holding lands To very large extent,
prominent among which we note the St: JoSe2ih
1
association belong 100000 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 allu-
| sion thereto.
| Kansas, which is the nearest and most prom
sing State beyond the Missouri border is rapid
| ly filling 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 arc springing up in
! every direction, the lands surrounding them be-
| ing quickly purchased and occupied by Farmers
| and StocE-raisers. 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, and cotton has
| been raised in South Kansas. Eastern Kansas
presents succession Of rich prarlcs, fertile val
fcys grass-covercd hills with an abundance of
yellow oak, black Walnut, elm, hickory, syca-
more, Eastwood and other timber, along the
streams. The middle is more thlnly wooded,
but the west has many extensive tracts OF forest,
the best requisites of the finest grazing country.
The more mpor'a ant mineral products arc gram
lite, 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 a bet
ter prospect than the Illinois Central r. H.
ton it becomes the Middle Route from the At
lsntic to the Pacific Ocenn, but by its cutoff
lie from st. Joseph to Fort kearncy, 1t 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 a maximum of Sl4 per acre down to min
imum OF SHE per acre, it will be seen that, II
for their lands, without taking INTO any account
the profits of their traffic, their 100000 acres
will produce ut least 81 100000 above their
mortgage, which is only S5,500,000
The road, which is being most suostantially
and thoroughly built and is being rapidly hur-
ried to complexion will at once form the most
important link in the great railroad system OF
the United Sites. 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 or any part OF the country lying
south or southwest of that rapidly-growing city.
Immediately on its completion, it is destined TO
receive large share of the business gong East
or West, beyond the Missouri River. and Its
managers have shown II wise foresight, in equip
ping the line with All abundance Of rolling stock
of aIl 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 al investment OF the
highest order The moneys received from the
sale of lands, form a sinking fund for the re-
dempton of the bonds, and the prospect Isl that
long before they fall due, the sale of the lands
wilt 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, 1870 and
are payable IN gold in the City of New York.
They bear interest ut the rate of Eight per ct.
per unnum, payable i'll Gold semi-annually,
free Of tax on the 18th days OF Feb. and Au-
gust in New York, London, or Franktort-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 the
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 pad To
the registered owner ut any of the three points
where the Coupons arc payable.
The management of this enterprise Is III The
hands of thorough practical men, and the Fl,
nancial Agents are the we'll known, experienced
banking lrm OF Tanner y Co.. IL wall o'rec''
New urk.
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
tcrcst, and it is certain that Capitalists do not
often have the opportunity of placing their mon
cy, for so long n time on a security, producing
more than eight per cent. interest i'll
gold.
These bonds arc of the denomination Of SlU,
$500 and $1,000, and are Tor sale at 81. and &C
crued interest, in currency.
The agents for their sale in this city are Mcssrs.
w. ID. CORSE a. CO..
81 & 50 King ST.
who confidently recommend them as Il first class
security, and who have already sold q large
amnunt TO some Of our most prudent and saga