The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-01-08
new STYLE BONDS
President StilweII Explains
Orient's Latest Plan.
At a Dinner Given to Stock
holders in Kansas City.
FOR SMALL INVESTORS
New Bonds Cost 500 Each and
Bear 4 Per Cent.
FOR SMALL INVESTORS
BOndholders Get an Option on
Choice Townsite Lots.

Kansas City, Mo, Jan. S.-A. E. Still
WELL president Of the Kansas City,
Mexico & Orient railway, entertained
about fifty stockholders in that enter
prise at a dinner at the Kansas City
club last evening. Mr.. StilweH took
advantage Of the occasion, which he
termed a FAMILY gathering to outline
a plan for an issue of bonds to be used
in financing the road. This plan con-
templates the sale of bonds of 500 each,
issued in the name of the Mexico &
Orient Townsite company, the corpora
ton which controls the new townsites
along the route of the system. The
sale of lots to bondholders, by a system
described below. is to be offered as an
attraction to western investors Mr.
Sttlwell decided upon small denomina-
ton, in order that a large number of
persons might be interested in the en-
terprise.
It is a matter of pride with Mr. Still
we'll that the Orient railway is being
built without the aid of New York cap
ttal and in the face of opposition Of
fered by the great railroad interests
which have their headquarters there.
He wishes it to be a distinctively west
eTn enterprise.
you want just rates and you do not
want the rates dictated by men in New
York, who look upon Buffalo as the
western limit of civilization" Mr. Still
we'll said 10 his guests last evening:
We are strong just where We want to
be-in England and in the western part
of the United States. We want the
people to feel that the Orient railway
is fighting the battles of the west and
that it belongs to the west. We hOpa
to place all these bonds in this western
country. These, with the stock already
placed and the subsidies from the Mex
lean government, should enable US to
finish the road in IS MONTHS
Mr.. Stilweu said he did not consider
It practical to divide the $1,000 bonds
already issued. But he considered the
500 bonds just as safe and, in addition,
they contained speculative feature,
which should prove popular in the
west, where men like to take long
Shots
FEATURES OF THE BONDS.
The 500 bonds are to be issued for
seven years and bear per cent inter
est. one of the plans of the company
in issuing the bonds is TO reserve one
half OF all the lots in toWnsites con-
trolled by the Orient company along its
entire length, not already disposed of,
for sale to bOndhOlders. The holder
of bond is to be given five options
He may at any time before the ma
turiry of his bond use it in the pur-
chase of any Of the reserved lots at the
price prevailing in the townsite on the
date of purchase, the bond to be valued
and accepted in payment at the end of
the first six months after the date the
bond is issued at $105; at the end of
the first year, at $40; second year, S12O;
third year $3.50; fourth year $40; fifth
year. $3.50; sixth year. $3.50: seventh
year, $40. No reserved lot in any
townsite is to be sold for money, but in
case the price of a lot exceeds the value
of the bond, the excess may be paid in
money.
AS a second option a bondholder may
exchange his bond for negotiable trus-
tees certificate, emitting him to 500 of
the railway company's first mortgage
bonds, SIS of the per cent preferred