The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1874-08-15
The international Railroad and the
Stale loan.
From the Galveston News.I

-
The international Railroad and the
Stale loan.
From the Galveston News.
A representative of the News yester.
day met Il gentleman who had just re-
turned from New York, when the fol-
lowing conversation took place:
Question-Whatw was the effect upon
the International railroad of Governor
olle's pr mise to recommend sub
sidy of S3G 100000 upon the reassem-
bling of the legislature, provided they
would aid Colonel Moody in nego-
tiating the state bonds?
Answer-I was in New York when
President Grow arrived, after the de-
cision of the supreme court, fut he
could accomplish nothing. From the
information | obtained, the stockhOld
ers of the International railroad COM
pany were unable to take any of the
bonds now offered for sale by Colonel
Moody, state financial agent. You are
doubtless aware that on Wall street Il
mans confidence in Il security Is
Judged by the amount he invests in it.
Q.-Did you understand the lnterna-
ton railroad company, or its individu-
al members, to throw any obstacles in
the way of Colonel Moody's negotia-
tiOns?
A.-As stated above, in financial cir
cles in New York, it avails very little
if bankers speak tavorably of security
and do not invest in ii. In cOnversa-
tion with members of the Internation-
al railroad company, learned that the
two companies, now operated as the
international and Great Northern rail-
road, have built and equipped four
hundred and fifty miles of railroad in
Texas at an expense ofabout 200, 900.
All of their assets are unstable how,
and will be until the roads are eXtend-
ed to some terminal points. There is a
first mortgage bond of 900 per mile
on The road and second mortgage
bond of 81 900 mile has been eXecu-
ted. The original stocks and bonds
amounting to 81 5,000,00O, are held eth
er by the stockholders or different
banking institutions as collaterals.
These securities cannot now be used for
any other purpose. In addition to this
number of stockholders are largely
interested i'm the manufacture of Iail-
road supplies and other railroads.
Since last September there has been
no demand for rails, locomotives, etc.,
and the large stockholders have been
required TO advance large amounts dur
ing the past year to save their personal
investments of this kind, Ill addition
to the general business. There has not
been SO great depression In all rail
road securities for fifteen years as with
in the last eighteen months.
Q.-So you infer that even were they
IT. lcEu at nf
the state loan themselves?
Al think they have just as heavy
load Us they can carry. Their roads,
they say, are not paying expenses at
present, and to meet the interest on
their own ponds they will have to
make an assessment upon the capital
stock, which some may resist, and the
consequence would be the default Of
the interest.
Q.-What was the feeling outside of
the International railroad company?
Al heard that objection was made
to the bonds, because no special provis-
ion had been made to meet the inter
est and provide sinking fund. Ae-
cortling to the law, both are to he paid
out of the general fund. i was also in
formed that state warrants had been
freely offered in New York at seventy
cents on the dollar, and as these, by
law, can be funded in ten per cent
bonds, the party holding them sug-
gested to capitalists that the bonds
could in that manner be obtained at
seventy cents, which was much lower
than Colonel Moody would take for
them.
Q.-Will you give me permission to
use your name in the publication of
this interview Il?
A. Il would rather not, as do not
like to have my name appear in the
public prints.
Thanking the gentlemen for his
courtesy, the representative OF the
News left him.
PER CONTRA.
Shortly after the foregoing CONVERSE
ton, the representative of the News
! received letter touching the same
! subject from Texas banker visiting
New York. The writer says:
"Most of the parties here who are in
! terested ia the issuance of the lnterna-
! tional bonds are bank presidents and
directors, and, consequently, they do
all they can to not only depress Texas
securities in the market, with view
of toning public sentiment in our state
| to the issuance of the bonds, but they
strive to prevent the chartered banks
I from loaning money! or facilitating any
one in Texas. They have got the i'm
preston abroad here that the bonds
were actually issued aud repudiated 10y
the state--the result Of which has proved
disastrous tu any enterprise in Texas
which requires capital from New York.
The Santa Ee railroad will remain i'm
statu quo for long time. The News
should understand this question, and
ventilate fully the fraudulent manner
in which the law passed for the issu
ance of the bonds. 1t is due Texas
that a full expose should be made, so
! that we may no longer suffer from the
fact that the matter is not fully un-
derstood."
PARIS, August There is rumor
afoat here that Germany is negOtia-
ting with Spain for the cession Of the
town of Santana, In the province OF