New-York tribune., 1874-09-10
A RAILWAY PRINCIPALITY.
THE LANDS OF THE PACIFIC RAILROAD AND THEI
MANAGEMENT.

THE LANDS OF THE PACIFIC RAILROAD AND THEIR
MANAGEMENT.
TO the Editor OF the Tribune.
SIR: l noticed a recent statement in your
financial column giving schedule OF property owned
by the Pacific Railway Company exclusive OF Its railroad
and equipment. The valuation Of the remaining llOooo
acres unsold there put down at Is per acre. Being
perfectly familiar with the location and character OF the
lands belonging to this Company, have no hesitation
In saying this estimate s much below the actual
results that will be attained. The land grant OF the
Illinois Central had neted that Company, according to
their report of December 81, 1S73 for 22i2
acres. about f1 per acre-almoS double the estimate
made for the Union Pacific lands
The future value OF these lands has been greatly en-
hanced by the discovery OF remarkable and nexhaust
BILE deposits for distance Of 400 miles along the
line Of the road At Evanston 80 miles east OF Salt
Lake n vein of coal is being worked 80 feet in
thickness The coal is entirely free from sulphur, and
burns in locomotives with as little smoke as hickory
wood Considering the quantity and quality or these
Goals 1t is probably Of the most wonderful deposits
in the world. The Union Pacific Company
owns more acres within the region of the coal discoveries
than all the coal lands both anthracite and buminous
in the State OF Pennsylvania When 1t is considered
that in addition to these exhaustess deposits OF coal
the whole region is full OF valuable iron the richest
IN the country. think am justified in saying that the
lands Of the Union Pacific will net the Company
The policy OF Company has been to sell the lands in
small quantities to actual settlers, and the result
thrifty towns sprnging up along the whole distance
800 miles-Detween here and Cheyenne. This is
tinually enhancing the value Of the remaining lands
These lands are now held by the Company subject to
two trusts-nrst the landgrant bonds OF which eight
millions are outstanding and the Land Department
have on enough land notes TO reduce them TO five
millions SO that these bonds will be rapidly retired.
The sale OF an additional million acres will entirely
wipe them out over s600O0 OF these bonds have been
paid and Cancelled by the Company since Jan OF the
present year The second aud only lien upon the lands
are the sinking fund bonds the retirement OF which will
follow Immediately after the land.g grant bonds Two
millions OF acres will suffice to redeem these bonds
leaving clear residue for the stock OF 100000 acres or
900 square mesIn area larger than the whole state
OF Massachusetts. 80,
these remaining lands, and TO specially pledge the pro-
ceeds to the purchase and cancellation or the stock
long as be bought in the open market under par
IL Is obvious that at the minimum NaluauOn the
sales OF the land Will be than sufficient 10 buy and
cancel the entire stock at par This Is new feature IN
railroad management and Is likely 10 be popular with
the stockholders at least those VINO nOld permanently
Nor this the only feature IN which the Union racine
Eastern roads. The panic OF last year IN
proving injury to the Company really proved
the probability Of any rival lines across the continent
Besides this while the Eastern roads nave been con-
stanty increasing their bonded debt the Union Pacific
is pursuing an opposite course and Is constantly paying
off and reducing It's bonds, having as remarked DefOe
bought and Cancelled far 100000 OF their land grant
bonds this year, record which tue local manage
IEent here refer with great pride Yours, c. T.
Omaha Sept 6, 1874.