New-York tribune., 1881-09-11
PRICE FIVE CENTS.
RAILROAD INTERESTS.
AN OvERIssUE OF BONDS.

fHCULAR1TIES OF THE MANAGEMENT OF THE nFs.
YER AND RIO GRANDE RAILWAY.
ne stock aud first consolidated mortgage bonds
OF the Denver and Rio Grande Railway Company
Were admitted t. dealings at the Stock ExchanQe
by vote of the Governing Committee. June % Isso
According TO the official statement of the comranv
'nere were at that time 565 miles Of road completed
ana under construction on which were ssued stock
10 the amount Of $4,000 900 and first
consohd"ted mortgage bonds to the anount
OF $S,475,000. The amounts authorized
under the charter were 100000 0Oo each
Oh STOCK and bonds. The amount issued on all
new road was limited by the mortcace 70 Sl5OOo
mile and the issue not 70 exceed the rate of
Sooo.Ooo month. The $16 600. 900 stock and the
Fo'4|o,ooO bonds we're placed on the regular list
iu January, 1881, notice was given of an increase
OF the capital stock of $4,000 600 and still later
In June of the present year bonds 20 the anonnt of
TLo4oooo were issued for the specific purpose of
feuting the same awonnt of first mortgage bonds OF
the Arkansas Valley Division between Pneblo and
Canon City. These part of the prior liens for
winch the first consolidated mortgage made mo-
vision.
III mas become known recently that honds bearing
higher numbers than those "listed at the Stock
Exchange were in the market. One brokerage firm
yesterday received $4,000 Of these bonds from an
onl-oi-to"n customer who desired 10 sell them and
OF the ten bonds five not a good delivery. be-
cause thev have numbers not recog,,izod 40 ,ho
Board. The highest number was l I s62 while the
highest number on the list was 8 100 This differ
ence indicated an issue of So 762 900 of bonds of
winch the Stock Exchange had no record. On in
curry at the office Of the company it was learned
that the amount iSSned i'm excess of that listed -
was between $4,000, 900 d s.. 600. 600 The pre-
else amount was unknown or kent secret. An of
ncer o. the company claimed in defence of the issue
tia1 % me company was engaged in the rapid extern
SION OF ITS lines; hat money was needed TO carry ON
thn s MorH' S' ana that money was to be had only
been issned in advance of construction lint that
when the road was comnleted the issue would NOT
exceed the rate of $4,000 mile according to the
;t % uas .b pa the mortgage This officer said that
u was the intention Of the company to make appi-
catlon for the further listing" of abont
pI,Vu9oo OF bonds within sixty DAYS He ad-
hot 81 however, that the amount would still be
Further inquiry brought out the fact that pro y
lnent member of the Stock EXCHANGE Governing
mon,hs ago. He was surprised 10 find that the
ponds received from his principal were not a good
delivery, and he still has them in his Office He ar
once called the attention of the company to the oc-
currence, and an official request that the COM
p1ny would rectify the isSne was made INIT
tne answer mat was retu ned was sive an e nc,
that time nothing has Deen done m the premises
ne saln, yesterday that in the of long con-
nectlon with the Stock EXCHANGE thus was the rst
instance OF the kind that had fallen un Ter his obser
vauon. III any other railroad company had ever
subscribers, at least. had held the bonds n was
suggested that the reason why the company did not
INST the additional Issue might he that it did not
WISH the bonds thrown on the market.
The issue of these 81 000.0O0 OF IS 600 600 of
bonds IN advance of the completion of the road
winch they cover nv mortgage is practically an over
issue. The mortgage limits the issue to 81 3 600 n
mile. bnt at times it probably exceeds $50 600 a
mile. There is also the rtantv that IL does not
exceed that rate that ii has any limits whatever:
besides the overissued bonds practicable have no
market. -