The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1880-02-26
THE TEXAS 4 PAOIPI0 RAILROAD,
Eager Competition for tho Bonds Issued TO tho
Construction Syndicate
Philadelphia Tim es,

lHllhhNlPHH 'HW'"f
A isw weeks ago tho formal execution of u
contract was announced between tho Texas
and Pacific railroad company and syndl'
cats of capitalists, In which the latter, In con-
alteration of $50, 900 bonds and $4,000 stock
por mile, agreed TO complete, within three
years, the ak hundred miles Of that road bo-
tween Us present terminus and III Pa'o,
Now Mexico. Tho associated r0ad'bulldors
include Jay Gould, Sidney Dillon aud n
large Boston interest, besides several gentle,
men prominent In tho present directory oil
the company. Almost m soon NJ the contract
had been executed tho members OF tho syn
dictate determined to advertise for proposals
for the purchase Of $4,000 600 OF the bonds.
Tho time for receiving bids was limited TO
thirty days, md nj the end OF that time bids
for oyor Sl00 900 were opened, tho aver
ago OF the bids reaching 30 per cent 1t
happened, however that clause OF the
contract required that nj least S2OOOOOO of
tho bonds should DO offered " the stockhold-
ers of record, and proposals for their plds
Issued thirty days ago were opened ycsterday
In this city Tho bids aggregated S6l,oal, IVY,
on nearly three timos tho amount That could
be sold, and aGain 80 per cent was tho aver
ago rate paid.
Tho chief result of this remarkable piece
of linancering will DO the completion of tho
southern route to tho Pacific by tho and 81
1888, for Tho Huntington party aro pressing
their road from tho California seaboard cast'
ward with all expedition and expect to reach
El Paso as soon rs tho Eastern builders do.
Major Frank S. Bond, Vico.President of
the Texas 4 Pacific railroad company,
spoke very hopefully Of tho prospects of tho
now road yesterday. -,
"Do YOU think tho syndicate contract will
result in turning the road over to Goul ID and
tho other monopolists of transcontinental
transportation % was queried.
alt certainly cannot do ii for three years"
Mr.. Bond replied. ",rhey are not to get
their bonds and stock until the road Is
finished. 1t will be doled out to them Just as
fast rs tho different sections are completed.
Even after the whole amount is paid, If the
present stockholders of record avail them
solves Of the right reserved To them TO pur-
chase two.ffths of tho stock the 'syndicatoT'
need not be permitted to own a controlling
interest"
"With the Huntington party in control of
the western end and the Gould party dom
inant in the eastern division, what becomes
of the promise of competition which was
one of the chief advantages held out rs n
consideration for the vast franchises granted
the roadF'
"Every inducement WAS offered to obtain
n government guarantee for tho bonds to be
issued. With that guarantee the com
pany could have fixed its interest at five per
cent, and could have prosecuted lis extension
without outside aid. Had it been
enabled to do so, we would have had a
shorter route to begin with, and a bonded in
debtedness of less than a third of that ofthe
other roads. That of itself would have given
the new route a vast advantage in tho compe-
tition. The aid was notgiven and the next best
offer was accepted. That happens to have
been made, in part at least, by the men
who are largely interested in tho other
route. 1t costs one cent more than onr
first proposition, but the capitalized in
debtedness of the road ms far as III
Paso will not DO increased, and it may not
result in such supreme control as is prophe-
sled for the members Of the syndicate
several of whom are and have been warm
promoters Of the southern route ever since it
was projected and may interpose solid objec-
tons to monopolizing schemes. As it stands
the Huntingdon end will carry double the
capital of the eastern half of its stock and
bond debt, being $50 200 per mile. Even
that is only two thirds of the stock and bond
debt per mile of the Central and Union
Pacific companies"