The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1880-02-25
THE TEXAS AND PACIFIC ROUTE.

Not long ago It WAS announced that n con
tract had been formally entered into between
The Texas and Pacific Railway Company and
n combination Of capitalists. Including Jay
aould and Sidney Dillon, In which the lntters
for tho consideration OF $4,000 In bonds and
$2o.OO0 In stock per mile. undertook to com
plete within three years the western extcn-
sion OF the road from It's present terminus,
near Fort Worth. to Eel Paso. on the Rio
Grande, a distance OF somesix hundred miles.
The syndicate, In addition to the gentlemen
above mentioned. embraces n large Boston
interest, besides several gentlemen promi-
ncntly identified with the present directory
OF tho Texas md Pacific hallway Company.
| After tho conclusion OF the contract IL was
determined by tho syndicate to advertise
s., 900. 900 OF It's bonds. tho time for receiving
bids being fixed Mt thirty days. At the expi-
ration VI that time over El0,O0O,0 600 were
opened, the average OF tho bids reach-
Ing 30 per cent. 1t happened. however, that u
clause of tho contract required that mt least
$4,000, 600 OF the bonds should be offered to
the Stockholders OF record, aud proposals
having been Issued for them for thirty days,
their bids were opened on the nineteenth In
slant, when It was found that they aggre-
gated ~. Gal 900. or nearly three times the
amount that could be sold. the ratio offered
naain averaging 90 por cent. The result Of
this remarkable piece OF ilnanclerlng, IL IL
thought. will be tho completion OF tho South
ern route to the Pacific by the end OF 1883. as
the Huntington party are pushing their line
from tho California coast with great vigor,
- .-..-t A.. l--x IL Dn..lH.,Al H. It-A.,.
builders rench thHt putHt. IN Il recent inter
view With n reporter of tho Philadelphia
Times, Ylco President Bond. OF the Texas and
Pacific. spoke very hopefully Of the prospects,
OF the new road. He said that 1t would not
be possible. under the contract. for the syndi-
cate to turn over tho road to Gould and tho
other m~onopolists OF trans-continentnl trans
portation within less than three years, us they
are not to got their bonds and stock until the
road Is finished., These, no says, will be-
doled out to them just rs fast rs tho different
sections OF the road arc completed. Even
after the whole amount is paid, II the present
stockholders Of record avail themselves of
the right reserved to them to purchase two-
iifths of the stock, tho syndicate nssd not be-
permitted to own n controlling interest. Be-
Ing asked what would becomso Of tho promised
competition with the Huntington party In
control OF the western end, aud tho Gould
party dominant In the eastern division, Mr..
Bond remarked that 1t might not after all re-
suit In such supreme control as Is prophesied.
for the members OF the syndicate, several of
whom arc and lave been warm promoters OF
the southern route ever since 1t was pro-
tprfnI NAV iptArnnuR EnttI nhiaptinnu RI mon
opoliHing schemes. AS 1t stands, the Hunt
ington end will carry double the capital of
the eastern half Of Its stock md bone debt.
being 5000 per mile. Even that Is only two
thirds OF tho stock and bond debt per milo of
the Central and Union Pacific Companies. All
danger from the transcontinental monopo-
lists. MIR. Bond still contends, might nave been
avoided II the government had given It's aid
to tho Texas aud Pacific Company. rs asked.
by guaranteeing the bonds to be issued, as
with that guarantee the company could nave
fixed its interest Mt 5 per cent, and have PROS
ecnted It's extension without outside aid.
lad 1t been enabled to do so" he says. 1.-The
Texas Pacific would nav had q shorter route
to begin with, and a stock and bonded In
debtedness OF less than a third of that OF the
other roads. That OF itself would nave given
the new route a vast advantage in the COM
petition. The aid was not given 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 the other route.
It costs | per cent more than our first propo-
sltlon, but the capitalized Indebtedness OF the
road as far as El Paso will not be increased :