Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1902-10-22
Plan for Selling the Securities Of
Salt Lake Denver Line,
CALL ON GENERAL PUBLIC
Experienced Railroad Wen and Others
Have Examined The Territory and
Announce II IL Good.

The International Trust company has
Issued the following memorandum re-
speciing the bonds Of the Denver,
Northwestern & Pacific, which We're
offered for sale TO the public
yesterday in 20 Of the leading cities Of
| the United States
Usually such an enterprise Is A.
hnced entirely through eastern banking
houses, that receive a large bonus OF
stock for their underwriting In addi-
ton TO a considerable profit for selling
the bonds to the public at an advance
over their cost. The present plan
however saves all the promoters prof
us, and the public receives the benefit
the stock bonus going TO the indlviduai
subscriber He also gets his bonds az
less than par
Another material advantage ls that
the small investor secures the same
favorable advantage as any bnnklng
house or other large purchaser The
man who takes a single $1,000 bond
obtains the same proportion OF stock az
If he bought 100000 worth,
fThe bonds which win be offered are
TO be absolutely a first lien upon all
OF the assets OF the company, incud-
ing It's entire equipment as there viii
be no car trust or equipment liens,
The construction contract provides
Tor a completed road fully equipped
and ready for operation. so that this
FIRST mortgage viii be the only lien
upon the property, and the bDndholder
Is further secured by the provision that
the bonds can only be certified and Is
sued by the trustees upon sections OF
the road as they are completed and
fully equipped.
'The security OF this Investment Is
further assured by the provision OF the
mortgage that bonds shall be Issued
only upon main track mileage and not
upon spurs or branches II also limits
the total amount Of the Issue, while I'M
der some railroad mortgages an In
definite amount Of bonds may he Issued
on a mileage basis.
Usually high grade first mortgage
4 per cent railroad bonds sells at par
or better, while in this instance the
price viii be little less han par.
The purchaser win also get so per G Mt
OF the stock. so that the bon1hnldprs
will be the owners Of one-half the
capital Of the railroad company and
have the same opportunities for profit
in the enterprise as the construction
company, which will own the other half
of the stock
Not only are the terms generous,
but they have been made MS favorable
as could be desired IN the matter OF
payments. A subscriber for the bonds
may pay the entire amount IN cash
and receive interest on his bonds from
the time his payment h made, or, at his
option, he can make the payments In
inatallments as required for the con-
struction work, but not more than 10
per cent OF the subscription can be
called IN any month. These partial
payments win also draw interest at
the bond rate from the time they are
made.
"The construction company obligates
itself under the contract 10 provide
for this interest on the railroad bonds
until the road Is completed and turned
over to the railway company.
we have already had assurances
from numerous sources OF an Intention
to invest In these securities. This fact
and the many Inquiries both from resi-
dents and from eastern parties indl-
Gates that o considerable portion OF the
bonds win be placed IN large blocks.
and what Is specially significant, very
large number Of small subscriptions
will be received. particularly IN Den.
yer and throughout the state This viii
undoubtedly be very gratifying TO
those who have undertaken the enter
prise and justlhes the confidence they
have expressed from the beginning. thai
our own people win appreciate the inn
mense value Of this new road and Its
undOubted earning capacity.
From the Importance OF the line as
a factor IN transcontlnental traffic, II
IL self-evident large revenue may be
ANTICIPATED IRON this source. II should
not. however. be overlooked that the
principal value Of the road and the
main reason for It's existence Is that Il
will add 10 the material wealth Of Colo
RADIO by the development of an entirely
new section OF the state, which Is con-
coded TO have unsual naiual resourc $,
Take the coal industry alone, for In
stance.
"Financial men in the east have
gone on record as saying that the eX.
tensiye coal deposits IN Routt county,
which will be tapped by this line, alone
furnish ample reason for building the
road
EXPERIENCED fallroad men ana otners
whose opinions carry weight have per-
sonally Inspected the country tribu-
tary 10 the proposed line and have pre-
pared careful and conservative estl-
mates OF the trafIlc 10 originate there.
from Such reliable evidence give as
surance that the local freight business
alone originating on the line will be
sufficient TO provide a net earning OF
a.. to-.
charge. This revenue ~ estimated
upon the transportation Of ores, coal
lumber cattle and other products OF
the tributary territory AID also the
merchandise. 10 does not Include any
,k-attgk frafghf traffic or Opueenyar