Mexico weekly ledger., 1909-09-23
STATEMENT FROM THE
MEXICO TRACTION CO

The following statement by the
Mexico. Santa Fe and Perry Trzc-
ton Co. VIII be Of interest TO every
citizn Of Audrzin county;
About twelve months ago this con-
Pany. having failed to finance its
road. ceased construction and under
went a partial reorganization. The
new management. after getting the
affairs Of the company adjusted, en-
larged the scope Of its operations
in two ways; First, By offering its
stock for sale to the public, hoping
In that way 10 build up an equity
that would make the proposition at
~tractive to bond buyers; second, by
extending its lines both North
and South to reach the important cit
les Of Hannibal, Columbia and Full
ton with the same purpose in view
TO satisfy bond buyers. We employ
ed expert engineers 10 superintend
the surveying and locating its lines
10 sii ti1ese points and procured the
necessary franchises and practically
all the right OK way. These opera
tons, carried on at great sacrifices
Of labor and money. were practically
completed by May 1st, Of this year.
busy corresponding with and visiting
In the meanwhile we had been
institutions in tho various financial
centeFs Of the country In the effort
20 Interest capital in our enterprise;
and since the first OF May all our
efforts have been devoted 10 that end.
We have not found # difficult to
interest financial institutions in the
scheme as now developed. They all
pronounce 1t attractive, but do their
figuring along the lies Of what has
come to be known as High Fl
nance" Their demands are, first.
That we give them a majority Of the
stock; second, Build up an equity
by donating the right Of way and
terminals, and by selling the mi
nority Of the stock to the people;
and third. Bond the enterprise fer
all it al carry. In other words, wit
them II is not a question Of whether
the road win pay a fair rate of inter
est on the cos Of construction, but
how much money can be gotten from
the people. and how many bonds
per mile viii It pay interest on.
Therefore the best proposition that
we have been able to obtain from fl
nanciers calls for an equity of $500
cash per mile and a bond issue Of
$4,000 per mile; when, as a matter
Of fact, we know that a good ser
vieeable electric road can be built
and equipped for SIT. 1000 per mile.
We have therefore rejected those
proposition as extortionate and as
saddling upon the community an un-
Just burden that would have to be
borne for almost a generation and
that might prevent them from ever
obtaining good service from the
road.
Our information is that wherever
inter-urban roads have been built In
a country where the principal in
dustry is agriculture, and the popu-
lation therefore not large, the com
munity has to start them, and when
a start is once made they continue
to grow and always pay.
We are confident that, II a start
Is once made and a section of road
built that building will not stop un.
til the entire line is built and many
branches and extensions added; and
we believe that the start ought to be
made at Mexico.
These considerations have induced
US to adopt the plan Of Burns &
Company of Chicago, the president Of
which company, Mr.. Burns, will be
IN Mexico Thursday of this week and
unfold his plans to the public. wei
Investigated Mr.. Burns thor.
oughly, have sent committees to IN
yestigate conditions and the characte
OF the work he is doing on the two
lines which he has under construc.
ton, and believe him to be absolute
reliable and capable and his plan
admirably adapted to conditions on |
our line. L
We believe we have at last gotten
a proposition that is practicable, and ]
hope for it's favorable consideration (
by the public. 3