The Lamar register., 1910-05-04

yer d Gulf railroad last SATURDAY
has been followed by disclosures
which leave little room to doubt
that some big system is behind the
new road projected from this city
to Dallas. The company apparent
ly has unlimited money at its COM
mand. and has begun operations on
a scale which has forced the Santa
Te system into a vigorous fight
against the new enterprise.
It has been learned definitely tina,
the money to defray the prelimin-
ary construction costs is comign
from one of the leading banks In
Minneapolis. A draft for a large
sum was received at Lamar the
other day to pay the men who have
been putonthe grade. but the draft
failed to disclose anything further
than that It came from that city.
The activity of the new road has
been SO pronounced that the Santa
Fe has placed q corps of detectives
on the heels of the two principal
agents OF the company to learn who
u behind them. and these agents,
when in Lamar to witness the in
auguration of construction work.
were unable even to send tele-
gram without duplicate being for
warded to Chicago. 1t is not be-
ueyed that the Santa Fe would be-
come interested in the project to
that extent unless It had infor-
nation that some big interests were
behind the road.
The Denver & Gulf Is projected
from this city to Dallas through la
mar. Colo. and Texhoma. Texas.
and It will cut 100 miles from the
distance via the Colorado & South
srn and 260 via the Santa Fee from
this city to the gulf. It has been
learned that the surveys babe been
completed almost to Denver and
that the line has been permanently
located for a distance of over $50
miles and that south Of Lamar the
cross-sectioning has been in pro-
gress on about 40 miles of the
surveys.
The only men known In connec-
ton with the company are Frank
A Umsted. president. and James
Swan. secretary.
The two agents of the company
and . delegation of citizens Of La,
vnar -ara tu Douvar Last Eahruarv
and entered into two contracts. One
Of these was between John NJ. Will
Hams Of Lamar. as trustee Of the
Denver 4 Gulf Townsite syndicate
fund. and the Denver 4 Gulf rail-
road.
The first party. As trustee for
. number of prominent citizens of
Lamar. agreed to provide the rail-
road with forty-nine miles OF right
Of way and depot grounds. and
further agreed to turn over $4,000
In cash-which sum was raised and
deposited in bank and a certificate
of deposit attached to the contract
when the railroad complied with
Its part Of the agreement.
The railroad agreed to begin con-
struction work by May between
Lamar and Texhoma and to oper-
ate q train between these points by
July /. 1911. The contract pro-
vided that construction work was
to be vigorously pushed after May
and that shops. roundhouse and
terminals were to be finished by
July /. 1912.
The second contract, made on the
same date. was between the same
parties and was to the effect that
the citizens of Lamar were to Sc
cure at their expense right of
way. twenty acres OF ground in La
mar for division terminals. shops.
roundhouses. etc., and were to de-
posit $4,000 in cash. The money
on both agreements is to be paid
over only after the railroad has
ahown by bona fide work that its
intentions are good and that 1t
has the money to carry out its
plans.
1t Is in connection with these
contracts that the fact developed
that the railroad company apparent
~ has ample financial backing.
The citizens Of Lamar. without
the knowledge OF the railroad peo-
pie. inserted a paragraph in tn,
proposed contract which would show
- evidence of their good faith, in
that It required the railroad to COM
plete and put in operation fifteen
miles of track south of Lamar in
SIX month"; time and previous to
the payment of any money to the
The officials readily ac-
copied that proviso. which means
that It will have to expend between
100000 and 100000 before it
gets one cent Of the Lamar fund.
IL has also developed that the rail-
road has secured enormous bonus
y In money and rights Of ~sy all