Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1913-12-20
String IS TIED TO
new RAILROAD
PROPOSAL
new MEXICO MUST RAISE $4,000
IF THIS STATE IS TO Be BENE-
FITTED BY THE new FARMING
TON-AlDUQUERQUE- QUE-UOSWElL LINE
OF RAILWAY.
THIS AMOUNT IS ONLY
A LOAN, SAY PROMOTERS

The only thing that stands in the
way of taking the New Mexico Central
railroad out of the hands of a re-
ceiver, the extending of the Albuquer-
que Eastern and the construction of
modern railroad from Pennington to
Roswell with branches to Santa Fe
and the Hagan coal fields is the mat
ter of raising Sl25,00O by citizens OF
New Mexico within the next thirty
days, says the Albuquerque Journal.
This money is not expected as gift
or a bonus, but merely as a short-time
loan. 1t is not to go through the
hands of promoters, but should be
sent direct to the Credit Lyonaise, in
Paris. Within approximately sixty
days it will be returned to the lend
ers in the form of checks OF the
Equitable Trust company, of New
York, who are the American agents OF
French bankers undertaking to
finance a rejuvenated New Mexico
Central railroad.
Such is the substance of an inter
view given out last night by Herbert
Green, of Chicago, in his room at the
Alvarado hotel. The interview lasted
for more than an hour and covered
many details of the series of confer
ences that the Chicago man has been
conducting here during the last few
days; but the vital point developed
by the talk which was had was that
if New Mexico wants the new railroad
it will have to put UP Sl25,0o0 at
once. If it fails to do so. there will
be nothing doing.
Present at the interview were Col
New Mexico Central. Col. e. w. Dob
son, attorney for the receiver of that
Mr. Green and representa-
tives of the two Albuquerque news
papers. A certain air of formality
was thrown about the matter and
great care was taken that everything
given out should be just so.
Mr.. Green exhibited to the news
paper men what was apparently a :
contract between himself and certain |
French bankers whose names are
from publication. This pa
per was in French. but an English |
translation OF it purports 10 obligate
the French fnanciers to take up the |
bonds of the Gulf, New Mexico & Pa, |
cific railway to the amount of twelve |
million dollars, and Mr.. Green eX-
planned that the first payment of
S750,000 on this amount was due in !
New York, January 81, 1914
But Mr.. Green explained, in order |
or this amount to become available ,
in fact, before the French govern
nent will allow cent to leave the !,
'ountry-certain formalities must be
observed, such as the payment of a
stamp tax, transfer tax, an inher-
tance tax, and charges 'for pub.
icity.' These charges amount to the T.
idy sum of S125,000, and the people
II New Mexico are expected to show
heir interest in the new enterprise
" making up this amount, not as a
onus or gift. but as a loan to be ,
epaid out of the first instalment of
19o,oo0 to be shipped over by the
'rench bankers
Mr.. Green was asked why the sum !.
demanded by the French government
ou!d not be deducted from the i,
100000 before it left France. His :
eply was that it couldn't be done !,
hat way He was very explicit. how l.
ver in stating that no part of the +,
um would go TO promotion charges. ,
nd that in fact the promoters would
OF handle a cent of the money. The +
ecple Of New Mexico he said. would !,
eal directly with the French bank
RS, who would turn the money over II
} the French government G
If this detail is arranged said Mr.. n
reen, everything else will be clear o
iiling. A tentative agreement, he C
eclared, has been reached with the a
ustees for the bondholders of the t,
resent company, by which. after the q
ipense of the litigation in which IL
e New Mexico Central is now in. el
)lved are settled, the property will
! turned over to its new owners and fl
e work of development will begin W
ithout delay, subject, of course to g
e ratification of the court. ir
At this point, Colonel Dobson ce
ished it to be made clear that moth
), had been done or agreed upon III
hich would in any way infringe ON TO
e province of the court, and that all ct
alings between the parties were la
th the understanding that they til
ust receive judicial sanction before pa
ey could become effective ge
None of the parties to the inter WI
ew would go SO far as to say that in
e agreement with the trustee for es
e bondholders constituted an op- Ell
IN on the bonds of the present com. tn
ny or on any of its property. which tn
e bondholders virtually own. 1t pc
Is described throughout as ten er
tive agreement" but it was stated of
at the agreement was in writing.
ked what time limit had been vi
iced on the agreement. Mr. Green Or
tied there was ample time it.
A conference was held Yesterday tel