Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1872-08-28
y FI.y.7.y'CE.7L.
LAND GRANT RAILROAD BONDS.
THE BEST SECURITY IN THE WORLD.

Among the multitudnous securities, when are
pressed on the attention of the capitalist none
offer such tangible and reliable certainty as the
carefully-selected bonds of bona fde Railroad
Companies. holding Land Grants from the UNI
ted States Government :, ;.
In addition to the advantages, which an orai-
nary First Mortgage Bond Of u successful rail-
road presents to the Investor, by It's hrst-class
security and its ready convertlblty at any time,
into cash, Land Grant Railroad Bond offers
the nearest possible approach to absolute securi-
ity, by its being represented not only oy com
pleted aud equipped road, but by the addltlenal
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 capitalsts-men who look to
security above everything, and of this no great
or 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 years, not only been built up and popu-
lated, but has also been freed from dept, con-
vcrting that State from barren waste into one
of the most aourishing States in tho Union, and,
at the same time, placing the securities OF that
Company among the most tavorte on the Mar
kets Of the World.
Many of the companies whose roads arc now
in course of construction, own land grants on Il
small scale, but there are about dozen Com
pan;es holding lands to very large extent,
prominent among which we note the st. Jose Pm
and Denver City Raaoad Company, to which
association belong l,1Go 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 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 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 are springlng up IN
ing quickly purchased and occupied by Farmers
and StocE-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, and cotton has
been raised in South Kansas. Eastern Kansas
presents succession of rich prarles, fertile val
lcys, grass-covered hills with an abundance OF
yellow oak, black Walnut, elm, hickory, syca-
moro, 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 gram
te gypsum and coal. The entire area is 81
GOO GOO acres or or enough to make eleven otates
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. K.
Company ever had, as not only by its construc-
ton It becomes the Middle Route from the At
lantic to tho Pacific Ocean, but, by its cutoff
ine from st. Joseph to Fort Kearney, it secures,
from the start, all the passenger and freight
traffic that il move, furnishing thereby, IRE
spectve Of the Land Grant, undenlable security
to the bondholder. When to this is added the
fact, that the other Land Grant Railroad Com
pancs have sold their lands at all sorts of prices,
from maximum of S14 per acre down to q min
imum OF 81. Is per acre, it will be seen that, II
this Company should realize only 81 per acre
for their lands, without taking INTO any account
the profits of their traffic, their 100000 acres
will produce at least Sl,5000OO above their
mortgage which is only So, 100000.
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 or any part OF the country lying
south or southwest of that rapdly-growlng city
Immediately on its completion, 1t is destined to
receive large share of the business gong East
or West beyond the Missouri River. and its
managers have shown Il wise foresight, IN equip
ping the line with an abundance OF rolling stock
of all kinds, to meet the demand that assure 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 un-
sold and are looked on, us an investment OF the
highest order The moneys received from the
sale of lands, form a sinking fund for the re-
demption of the bonds, and the prospect is, that
long before they fall duo, the sale OF the lands
will accumulate sufficient funds to meet them
without trenching in any way upon the business
of the road.
guarded in every shape and way. The bonds
have thirty years to run from May, 1870 and
are payable gold in the City OF New York.
They bear interest at the rate Of Eight per Ct.
per annum, payable i'll Gold semi annually,
free Of tax, on the 18th days OF Feb. and Au-
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 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 well-Known, H experience
banking firm of Tanner u Co., IL wall oLreeL
New York.
Altopethcr 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 90 not
often have ave the opportunity of placing Their mon
ey, for so long time on a. security, producing
more than eight per cent. interest IN
gold. e,oo
These bonds are of the denomination OF Sloo,
$500 and $1,000, and are tor sale at 97l and &C
crued interest, in currency.
The agents for their sale in thiscity arc Messrs'
w. ID. CORSE & CO..