Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1872-09-06
FIJy.9JHCiHL.
LAND GRANT RAILROAD BONDS.
THE REST SECURITY IN THE WORLD.
FIN:HNCIHL

Amongthe multitudinous securities, when are
pressed on the attention OF the captal!st, none
offer such tangible and reliable certainty as tns
carefully selected bonds OF bona tide ksiir T
| Companes holding Land Grants from she on'-
| ted States Government ;.
In addition to the advantages, when an oru !i
nary First Mortgage Bond of Il successtul rail-
road presents to the Investor, ny us nrs., ,a
security and its ready converubllity ~ ANY tiihe,
into cssb, a Land Grant Railroad Bond offers
The nearest possible approach Us absolute securl-
| itv. by its being Represented not only hy 4 com
pietcd aud equipped road but By the additional
pledge Of lands, at least equal IN Vaiue 10 inc
amount of Il e 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
er evidence is necessary than the case of the L.
linois Central Railroad Company, by whose
owners the State of Illinois has in the course OF
= few wears, not only been built up and popu-
lated, but has also been freed from debt, con-
ycrting that State from barren waste into one
of the most fourshiug States in the Union, and,
at the same time placing the securities OF Inat
| Company among the most tavorltc on the Mar
kots of the World.
MANY of the companies whose roads are now
| in course of construction, own land grants on u
small scale, but there are about dozen Com
| pan;es holding lands to very large eSten!
prominent among which we note the St JoSc2h
and Denver City RAILROAD Company, to when
| association belong |, iOnun AclcS VI I'ie N4iieS'
! lands in Kansas and Nebraska. :,
This road is located in Missouri, Nebras ka and
! Kansas, the progress of the two former of which
States is too we'll known to require further allu-
| sion thereto.
Kansas, which is the nearest and most prom
Using State beyond the Missouri border. is rapid
| " filling up with hardy agricultural Settlers
! and there is every indication, that 1t 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, ana
thrifty and growing VILLAGES are sprlnging up IN
every direction, the lands surrounding them be-
| ing quickly purchased and occupied by Farmers
and StocE-r.lsers. The climate of Kansas Is
mild and agrceable the winters, are short ana
snow seldom falls to any considerable depth ;
the soil IS adanted to the cereals ana al Inc
fruits and vegetables Of the Eastern States; hemp
and sorghum are common crops, and cott3n has
! been raised in South Kansas. Eastern Kansas
presents succession of rich praires fertile VA
| feys, grass covered hills with an abundance OF
yellow oak, black Walnut, elm, hickory, syGha- YEA
| more, Eastwood and otkcr 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 important mineral products are gran
tie. gypsum and coal. The entire area Is 81
G00C1l acres. or enough to make eleven Sta.es
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. Il.
! 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
lil.e from St Joseph to Fort hearneE, 1t secures
from the start, al the passenger and freight
traffic that it can move furnishing thereby ire
spcctive Of the Land Grant, undeniable security
to the bordholder. 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 u maximum Of S14 per acre down to a MN
imunl OF 81 IS per acre, 1t will be seen that, II
this Company should realize only "a per acre
for their lands, without taking INTO any account
the profits Of their traffic, their l,7OCG coo acres
will produce at least 81 100000 above their
mortgage which is only s., 50O,Wu.
The road, which is being most substantially
and thoroughly built ana is being rapidly hur-
ried to omtletion, will ut once torn the most
the United States. Il 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 rapid y-growing city.
Immediately on its completion, 1t Is destined to
receive large share of the business going East
| or West, beyond the. Missouri River, and its
| managers have showna wise foresight. IN equip
ping the line with an abundance Of rolling stock
| of all kinds to meet the demand that Is sure to
| arse.
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 un-
! sold and are looked on, as an investment o. the
highest order The moneys received from the
| sale of lands, form q sinking fund for the re-
| Gemption of the bonds, and the prospect IL, 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 bondnolder have been
guarded in every shape and way. The bond;
| 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 in Gold semi-annga,ly,
free Of tax, on the 10Th 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 ma7 be registered in the
| be converted into registered bond By the sur
| render of the Coupons, and the interest paid to
the register ed owner at any of the three points
where the Coupons are payable.
The management of this enterprise is in the
! hands of thorough practical llen, and the RI
nancial Agents are the well-known, experienced
| banking firm of Tanner s. 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 Capitalists do not
often have the opportunity OF placing their mon
ey, for SO long time: on a security, producing
more than eight per cent. interest in
gold. -l....
These bonds are of the denomination OF 500,
$500 and $780, and are tor sale at 81. and &C
crued interest," in currency.
The agents for their sale in this city are MeSsrs.
w. ID. CORSE IL CO..