The Topeka state journal., 1905-11-20
RAILROAD NEWS.
Bids for Railways in Philippines
to Be Opened Dec. Is.
Government VIII Lend Its Aid
in Their Construction.
VOICE IN MANAGEMENT.
Materials for Lines to Be Ad-
mitted Free of Duty.
Gossip and Matters of Interest
in Railroad Circles.
VOICE IN MANAGEMENT.

Washington, Nov. 20.-Decisfon has
been reached by the war department for
extending the time until December Is
for receiving bids on the new railway
projects in the Philippine islands. The
original notice was for the bids to be
opened November l. The extension of
time, it is explained. is to afford inter-
ested parties time to go to the Philip
pines and look over the ground and per
feet the necessary interpretations
through which the bidding must be
done. It is said at the department that
a number Of parties have evfnced an
interest in the subject and It was while
Secretary Taft was in the Philippines
that he was shown that it would be ad-
Yantageous to the government if more
time could be given for perfecting the
bids.
The New York banking firm of speyer
q Co, are the principal owners of the
present Philippine railways, and natur-
ally are quite intereste9 the new pro-
jects. The department does NOT feel at
hoerty to disclose what other parties
are likely to enter the bidding. but it
is said that there are number. The
Jaw Jaw PROVIDES that the corporation from
Whlch the bid comes must be an Arneri-
| can corporation, but this, of course.
! does not prevent foreign capital finding
Investment through American agencies.
me new Philippine railroad properties
are nomlnatIy to be held and managed
/ IN private ownership. The interest of
/ the government is that of guarantor
and silent partner. The law which was
passed by the last congress provided
1 @ @lnat the Fnlhppine government might
1 issue perpetual franchises for the con-
| stFuetlon of railroads, telegraphs. etc
/ and to encourage the construction bv
1Ianchlse holders might indorse first
mortgage bonds on the properties to the
maximum limit of per cent per an
mum for a period not exceeding 30 years
/ ana to total amount of liability in
Cured for not to exceed 81 200. 900 per
/ annuIn- It is provided that the govern
ment shah have two directors on fhe
! board of each corporation owning and
| operating such road in order that the
/ interests of the government may be pro-
1 tected to the extent of its guaranty The
/ bonds which are to be issued must rem
] resent the actual value of construction
and the government is given first lien
/ for the protection of its interest Iiabilj-
| ~ on the property and earnings of the
road, subject only to necessary operat-
| ing expenses, reasonable expenses of the
/ corporation necessary and ordinary re-
| pairs and such betterments and extra
ordinary repairs as the governor general
OF the Philippines may consent to in
writing.
In asking for bids it is Anticipated
/ that the rate of per cent interest and
the period of 30 years for which the
/ guaranty may run shall be regarded as
| outside limits, and bidders who wish to
offer better terms are invited to say
how much less rate they will accept,
and for how much shorter period they
would be content to have the govern
/ ment guaranty run. If bidders are will
ing to build any part of the system
! without guaranty they are invited to
disclose the fact in their bids. Bidders
are also asked to say for what amount
less than 95 per cent of the cost of con-
struetion they will be willing to issue
/ the first mortgage bonds.
1 A maximum of five years, after the
final location of the route, is allowed
for the construction Of the 600 miles
of road involved in the main division
] of the work. The grantee must build