The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-06-15
4nanrial.
$1,5oo,oOo
Rio Grande Western
Railway Company
First Consolidated Mortgage
4 Per Cent. Gold Bonds.
DATED APRIL 1sT. 1899.
DUE APRIL lsT. 1e4s.

Interest payable April and October frat
in tho City Of New York. In Coupon
form 81, 900 each Convertible into
registered certificates of $1,000
and multipies thereof. Au-
thorized at $4,000
pcr mile.
The State Trust Company. Trustee.
General WILLIAM J. PALMER. President
Of the Rio Grands Western Railway Company.
has written us concerning tho above issue as
follows:
Colorado Springs. COL.
March, 1899.
"Messrs SPENCER TRAsK CO..
"Messrs. LEE, HIGGINsoN l. CO.,
" Dear srs:
THE Rio arsnde Western Railway Company's
Consolidated Mortgage Bonds. OF which we have
sold youS1 200 900. will be secured the entire
properties Of the Company. subject only. az to
part to the eKisting Z per cent. First Mortgage.
They will be hrst lien about ITO miles
already constructed. on rs additional miles under
construction. and all lines hereafter construct
ed acquired. at the rate OF sac. 900 per mile.
Also upon s8r6,ooo Of equipment already provided.
and on all future equipment that may be acquired
with the proceeds OF any of these Bonds.
" In substitution for the First Mortgage Ave per
cent. Branch Line Bonds in the Treasury
49,, $40 900. there will be issued OF these Z per
cent. Consolidated Bonds 81. 200 900. being at tho
rate of $4,000 per mile upon two important
branches, aggregating, as above stated 40 miles
These per cent Bonds however. will pass into
the Treasury u reserve OF the Company. and tho
only additional interest charge actually created
will be for the $1,000. 900 Bonds now sold, which
are for tho following purposes. to witt
$500. 900 TO build % miles OF new line under
construction. including a branch line up the
Provo Canon, and extensions OF the Pleasant
Valley Branch to additional coal mines in that
held.
The remaining q. 600. 900 to discharge all oar
trusts and other indebtedness for equipment,
to restore to our current resources the sum eI.
pended in 1899 In building the Server Railway
extension to Belknap and to provide additional
equipment
THE surplus earnings OF the Company beyond
all charges prior to this issue amounted for the
year ended June aoth. 1898. to s5+5. 900: while
the hIed charges this issue of Bonds will be but
$40 900.
II fully concur In tho estimate OF our General
Manager that the new equipment TO be forth with
put under this mortgage e FIRST lien will net to
the Company in saving Of mileage now paid -
other roads. and from tho com mand OF additional
business. the bulk of the interest on tho entire
1890 900 present issue. This is outside off any
earnings from the new rs miles of railway. The
net earnings OF the 10 miles of existing branches
upon which these Bonds have prior lien. amounted
in 1893 to double the interest the issue to be
made
Tho First Mortgage and present Consolidated
Mortgage Bonds constitute all OF the liabilities OF
tho Company, save what the proceeds OF the Bonds
now sold will discharge.
Yours, very truly.
"tsigned). W. J. PALMER. President"
Having privately sold tho larger portion
of the above issue, We offer tho unsold bal
ance at s7h and accrued interest.
The subscription books will open at the
offices of the undersigned on Thursday,
June 18th, 1899, at 10 A. M, and will close
| at 12 O'Clock tho same day. Subscription
| may be earlier terminated.
| Tho right IL reserved to reject any sub.
scription and to allot smaller amounts
| than those applied for.
| Application will he made for listing the
| issue upon tho New York stock Exchange.