New-York tribune., 1902-10-21
IMPORTANT RAILWAY CONTRACT
coIoRADo-UTAH CONSTRUCTION COMPANY
WILL BUILD NORTHWESTERN AND
PACIFIC RAILROAD.

Cfical notice is given that the Coorado-Utah Con-
ttruction Company has contracted with the Den
yer, Northwestern end Pacific Railway Company
20 build and equip about five hundred miles Of the
latter's railroad, between Denver. Col, and SAT-
Lake City, Utah. This contract provides for sub
stsntal roadbed eighty pound steel rails and mod
srn possenser and freight equipment The railway
company will pay for this work in its own bonds
and stock
Under the provisions OF the contract. the railway
company VIII issue 10 the construction company
$4,000 OF It's FIRST mortgage per cent bonds, and
s000 par value of its full paid preferred stock ana
an equal amount OF its fun paid common stock for
each completely built and equipped mile Of main
track turned over TO H.
The railway company has authorized capital
stock OF S20O0.0O0 Of which one-hslf IS per cent
non-cumulative preferred and the other one-half
common stock. The hrst mortgage Of the railway
corpany 10 the Mercantile Trust Company Of New
York provides for issue not exceeding S2o0""
ff,y-vear per cent gold bonds OF which Issue the
balance Of S2l50o0cO remaining after the payments
10 be made under the construction contract viii be
held in reserve by the railway company.
The Colorado Construction Company will re-
reve through the Mercantile Trust Company or
New-York. the Providence Banking Company Of
Providence r l.. the Commercial Trust Com
pany, OF Philadelphia, and the international Trust
Company Of Denver. applications for subscrip-
tions in N.Ooo and multiples thereof 10 the oonos
and stock Of the Denver. Northwestern and Pa
cihc Railway Company until the close Of business
plicsfions viii be received
The right Is reserved To call for the payment OF
subscriptions 10 these securities. as money IS re
9uired by the construction COMPANY tor & tne IuL-
<lmeDt OF its contract with the railway company.
but in VIII subscribers De required 10 pay
more than 10 per cent oI lhe suis-llpllCCLs ~
one month. Subscribers are also given the op-
tion 10 pay the whole amount OF their subscrlp-
each $3.50 paid by him $1,000 per cent hfty-year
first mortgage gold bonds OF the railway company
and $3.50 par value OF both the preferred ano com
mon stock. Until the engraved certitcates OF me
railway company are delivered the construction
rompanv will issue temporary receipts bearing IN
terest al the rate OF per cent per annuu Inc
one-half OF the common and preferred STOCK OF
the railway company not offered tor SUBSCRIPTION
president sylvester T. Smith of the construction
eompany says shat upon careful eHaInnaIlo9 a. o, OF
RADIO, Utah and Wyoming, il is conserVauvely esti-
mated that the Denver Northwestern and racine
kross earnings Of al least $1,000. net earnings OF
$50. mile per annum. and that this revenue
this estimate irrespective of any through travel
freight Attention is called TO the fact that the
thereof reserved. winch II Is expected, VIII NOT
5e necessary issuel limited $40 00 per mile
OF completed ana equipped railroad: upon which
the annual interest charge VIII ne $1,000, or only
one-half OF the estimated net earnings President
Smith, for the construction company recommends
the bonds and stock of the railway company a
safe and profitable Investment
President MOnat. OF the railway company says
that a Is organized invade the territory Of
other railroad company bat 10 open CtVe-
M opment and traffic region Northwestern Colo
rado and Eastern Utah larger Than th. stare OF
Pennsylvania, which is now without q single mile
of railroad Regarding the character Of this terri-
tory, he says that il rich I'm deposits Of gold
nous ana antIraclie coal he territory also has
valuable timber forests and broad OF grazing
lands ano land capable OF high cultivation II Is
Is expected when the road Is operation This
new line VIII be more than hundred miles shorter
lake City