Semi-weekly herald., 1913-12-29
BRIGHTER RAILROAD OUTLOOK

The only thing that stands in the
way of taking the New Mexico Cen
tral railroad out of the hands of a
receiver, the extending of the Albu-
querque Eastern and the construction
of modern railroad from Farming
ton to Roswell with branches to San
ia Fe and the Hagan coal fields is
the matter of raising $125,000 by
citizens of New Mexico within the
next thirty days.
This money is not expected as d
gift or a bonus, but merely as a
short time loan. 1t is not to go thru
the hands of promoters, but should
be sent direct to the Credit Lyon
aise, in Paris. With approximately
go days it will be returned to the
lenders in the form of checks of the
Equitable Trust company, of New
York, who are the American agents
of French bankers undertaking to fl
nance 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
conferences that the Chicago man has
been conducting here during the last
few days; but the vital point devel-
oped by the talk which was had was
that if New Mexico wants the new
railroad it will have to put up $125,-
900 at once. If it fails to do so,
there will be nothing doing.
Present at the interview were Col.
W. S. Hopewell, vice president of the
New Mexico Central: Col. E. w. Dob
son, attorney for the receiver Of that
company; Mr.. Green and representa-
tives of the Albuquerque newspapers
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
withheld from publication. This pa
per was in French, but an English
translation of it purports to obligate
the French financiers to take up the
bonds of the Gulf, New Mexico and
Pacific railway to the amount OF
twelve million dollars, and Mr.. Green
explained that the first payment OF
$3.50 900 on this amount was due in
New York, January 81, 1914.
But, Mr.. Green explained, in order
for this amount to become available
lin fact, before the French govern
ment will allow cent to leave the
country-certain formalities must be
observed, such as the payment Of
stamp tax, transfer tax, an inher-
Iitance tax, and charges 'for publi-
city" These charges amount to the
tidy sum of $125,000, ard the people
of New Mexico are expected to show
their interest in the new enterprise
by making up this amount, not as a
bonus or gift, but as loan to be
repaid out. of the first instalment OF
$75OOOO to be shipped over by the
French bankers.
Mr.. Green was asked why the sum
demanded by the French government
could not be deducted from the $780,
900 before it left France. = His reply
was that it Couldn't be done that
way" He was very explicit, how
ever, in stating that no part of the
sum would go to promotion charges,
and that in fact the promoters would
not handle cent of the money. The
people of New Mexico, he said, would
deal directly with the French bank
ers, who would turn the money over
to the French government.
If this detail is arranged, said Mr..
Green, everything else will be clear
sailing. A tentative agreement" he
declared, has been reached with the
trustee for the bondholders Of the
present company, by which, after the
expense of the litigation in which
1.-THE New Mexico Central is now in
volved are settled, the property will
be turned over to its new owners and
the work of development will begin
without delay, subject, Of course te
the ratification of the court.
i At this point Col. Dobson wished il
to be made clear that nothing had
been done or agreed upon which
would in any way infringe on the
province of the court, and that all
dealings between the parties were
with the understanding that they
|must receive judicial sanction before
Ithsy could become effective.
Nnns ~ the nnrtiA4 "a thu fntav.