Gilpin observer., 1906-02-01
THE NEW RAILROAD
Up to The People Of GiIpin County to Raise
Sl25,000 and The Balance Of the
Money Will Be Furnished.
ENTHUSIASTIC MEETING OF BUSINESS MEN

house Tuesday evening for the purpose
OF discussing the Gilpin g. Clear Creek
District railway proposition. The gath
men and representative citizens of the
county. r. A. Hall called the meeting
to order and suggested that chairman
be chosen. John G. McShane was sell
ected to act as chairman and q. NJ.
Laird as secretary.
The first speaker 70 talk ON the rail
way project was w. b. Baker, of Chi
cago, who in company with Mr.. Hall,
had been in the city week before the
meeting, visiting the business men and
talking over the railway proposition
with them. He explained the situation
80 that the gathering might understand
why he was there. His talk in part fol-
lows:
81 am not interested in the railroad
but represent parties in the east who
made Mr.. Hall proposition to build
and equip the road. Happening to be
in Denver, | stopped off and took trip
to Central City to see what was being
done in connection with the project and
arranged to remain here a short time to
see if ways and means could not be de-
vised whereby the road could be built.
II the right spirit is entered into and
everyone puts his shoulder to the wheel,
it can be accomplished"
He then went on to explain some
things which appear in the subscription
agreement published at the conclusion
OF this article, relative to the bond issue
of the railroad company proper and the
Hall Construction company. The rail
road company is organized with a capi.
tai stock of 81 100000 with bond issue
of $750,0O0. The Hall Construction
-compa ny has entered into an agreement
road for the stock. Eeastern parties
who are to advance the money agree to
build the road for s5JO,C0O, the terms
being $4,000 in cash to be paid in in
stallments and the note OF Hall Con
struction company. The note Of the
Hall Construction company is to be Sc
cured by the $4,000 OF bonds. The
note is to be carried eighteen months,
six months in which to build the road
and twelve months to show its earning
capacity. For the purpose of raising the
$4,000 the Hall Construction company
intends to sell bonds.
Fifty thousand dollars have already
been expended by the Hall Construction
in surveys, procuring right Of ways and
other necessary preliminary expenses.
The speaker claimed that much work
had been done by Mr.. Hall which is not
visible on the surface.
Now the question OF raising $4,000
is the object of the meeting" said Mr.
Baker. THE business men are not here
to contribute but to determine whether
they want to raise that amount or not
Mr.. Hall intends to raise the money by
selling stock. This money is placed
with trust company in Denver and in
the event that the amount is not raised
by July lst Of this year, what has been
subscribed will be returned to the sub
scriber. A person thus investing his
money either gets the railroad or his
money back. 1t is really a loan and
will be paid back within the period OF
two years and the dividend on the stock
will be between four and five per cent"
After Mr.. Baker concluded his re.
marks, Mr.. Hall took the floor and made
quite an extended talk. He told how he
had been trying to interest people in
the east in advancing sufficient money
to build the road without requiring an
equity from the local people. Mr.. Hall
stated that he had visited all the princi-
pal cities OF the east in the interest OF
the project and had even been into Can
ada. One time last summer he thought
he had found parties who would build
the road. He came to Denver and in
creased the capital stock Of the COM
pany. The same question was raised as
sprung up before-how much equity
have you in the new road? He told
them OF the 160 shippers, about the
right Of way and the preliminary work
that had been done, representing quite
an outlay OF money. The parties that
were to advance the money required
that the local people have an interest to
the extent OF 100000. In Boston two
firms were willing to build the road but
wanted 100000 subscribed before they
would advance any money.
Mr.. Hall claimed 1t was hard matter
to interest parties far away who were
not familiar with the conditions. His