The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1874-08-09
Thc International Railroad ana the
state Loan.

The international Railroad ana the
state Loan.
From the Galveston News
A representative of the News yester.
day met u gentleman who had just re-
turned from New York, when the fol-
lowing conversation took place;
Questl0n--Whnt was the effect upon
the International rallroad Of Governor
Cokes promise TO recommend n sub
sidy OF $50, 00O,0O0, upon the reassem-
bling OF the legislature, provided they
would aid Colonel Moody In nego-
tiating the state bonds2
Answer-I was In New York when
President Grow arrived, after the de-
cislon of the supreme court, hut he
could accomplish nothing. From the
information ! obtained, the st0ckhold,
ers of the international railroad COM
pany were unable 10 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 u security IL
Judged by the amount he invests In IL.
Odd you understand the lnterna-
ton railroad company, or It's individu-
nj members, to'throw any obstacles In
the way Of Colonel Moody's negotia-
tIons?
A.-As stated above, in financial cir
Giles In New York. II avais very little
II bankers speak favorably of II security
and do not invest In 1t. In converse
ton with members of the Information
nj railroad company, ] learned that the
two companies, now operated rs the
International and Great Northern rail-
road, have built aud equipped -four
hundred and fifty miles of railroad In
Texas atan expense ofubout $40 600, 900.
All Of their assets are unstable now,
aud win be until the roads are extend
ed to some terminal points. There Is u
first mortgage bond of $4,000 per mile
ON the road and second mortgage
bond of 81 900 mile hns been execu-
ted. The original stocks and bonds
amounting to $l5,00O,0OO, are held eth
or by the stockholders or different
banking institutions rs collaterals.
These securities cannot now be used for
any other purpose. In addition to this
u number Of stockholders are largely
Interested In the manufacture of rail-
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, in addition
to the general business. There has not
been 80 great depression In all rail-
road securities for fifteen Years ns with
In the last eighteen months.
Q.-So you infer that even were they
disposed, they could not lake any of
the state loan themselves?
AL think they have just rs heavy
o load rs they can carry. Their roads,
they say, are not paying expenses ut
present, and to meet the interest on
their own bonds 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-
lon had been made to meet the inter-
est and provide sinking fund, Ac-
cording TO the law, both are to be paid
out Of the general fund. was also in
formed that state warrants had been
freely offered In New York ut 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 =?
Al would rather not, rs l 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 conversa-
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 in the issuance of the Interna-
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
from loaning money or facilitating any
one In Texas. They have got the i'm
preston abroad here that the bonds
were actually issued and repudiated by
the state--the result of which has proved
disastrous to any enterprise in Texas
which requires capital from New York.
The Santa Fe railroad will remain in
stati quo for long time. Tie 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 full expose should be made, so
that we may no longer suffer from the
q. kl..,e To, f.,n.