The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1881-12-18
7 - ga s-Bt - t4g ~
RAILROAD RACK Eg.
Trouble with Mexican Conn
paDy-GOuld's Southwest
s ern System.

New York, 1.-THE T7i6uue says;
The Mexican National Construction Co.
was organized for the purpose of building
the Mexican National railroad from
Loredo to the City of Mexico, and from
that point west to the Pacific at Manzea-
milo. The capital 1875, 600, 900, of which
81, 900, 900 is preferred stock entitled to
/ per cent. dividend in advance Of the
81 900, 900 common stock. The common
stock was used to pay for the Palmer
Sullivan concession on condition tnat
the preferred stock should be paid for IN
| full in cash. The construction company
turned over the contract to the railway
company, receiving the subsidy granted
under it. It was to receive for the con-
struction of the line $50, 900 in bonds and
S2O, 900 in stock q mile. OF the stock
and subscription so per cent. has been
called. All this amount has not been
paid and the company has recently seut
notices to subscribers requesting lnmedl-
ate payment. Officers Of the com
pany decline to make known the
amount unpaid, but 1t is understood
to be about 1925 Gp0 of the stock Of
the construction company, and Leariy
$4,000 of subscriptions ale in default
At the same time subscriptions are SELL
ing at discount of about 10 per cent
snd the construction conpany'a stick at
discount of from 81 10 Y per cent. It
was reported in Wall street, yesterday,
that the company was IN want OF money
to continue the work of construction,
ard that Could. TO whom application Tor
help has been N ade had refused 10 assist.
The correctness of the report could not
be verified absolutely. Russell Sage, who
was believed to know something of the
application, would only say that aome OF
the Mexican companies had been very
enterprisiDg; that Gould and be, who
were interested in Mexican line, were
wsiting to see how their neigh bors got
along in the efforts of the line between
Laredo and Mexico City. II is said
that about forty miles have been COM
pleted and about $50 miles graded in ad-
dition TO the company's own narrow
gauge read from Corpus Christi to
Laredo, which was bought and COM
pleted for the transL oItation OF supplies.
Worlds Laredo: The track !aye-' Of
the Missouri, Kansas and Texas ExteD-
sion. con- pieted the laying TO the limits OF
this city to-day. This gives an VI broken
line of railway from the Mississippi at
Ot. GOuhs ~ We hAO VI nuHS a. ho4OAO1
making q through line about 1900 miles
in length. The southwestern system IN
dertaken By G uld, little more than
yea7 ago. hiss been completed from the
Miss:ssil p; at st. Louis, to three points
New Orleans, near the Cuff. 81 Paso on
the frontier sfNew Mexico, a-G Laredo,
about half way tetween ii csc Two. sick
leo is now reached by an American rail-
way line. The construction forces o; the
system are now rapidly coI centr4tiag ut
this point, 10 com mente the great work
OF pushing on 90 miles fu ther to the
City Of Mexico. The engineers who have
had this part OF the work in charge. COMP
leted their preiiminaryreport which is very
favorable. The line will run through 3
rich mining and agricultural country.
Extensive deposits of coal have been
found on the line Of toe rosd. aud such
arrangements e7e making that 4 stau daId
guaga railway line, tn be- operated by
the Missouri Pacific Company, from st.
Louis through to the City OF Mexico,
1000 miles in length, nay be expected
to be completed and in operation in
els hteen months from this time.