The Dolores star., 1922-07-07

Of the Development Company which
stock in turn will be secured by the
increasing value of all the lands as
well as by the value Of the railroad
stock held in the treasury of the De-
velopment Company.
THE SYNDICATE receives the
common stock of the Development
Company, but under the agreement
and under the charter of the Devel-
opment Company, the Syndicate can
receive no dividends or return upon
its common stock until the preferred
stock of the landowners shall have
been paid off and retired, at par with
accumulated six per cent dividends.
AS COMPARED WITH THE OLD
AGREEMENT, many provisions are
the same. The railroad to be con-
structed is the same. The require
ments as to the railroad company are
similar, except that it will be free to
issue further stock for railroad ex-
tensions within the Basin" The
agreements are made in triplicate, as
before, the landowner retaining one
copy. The landowners have the same
rights to full use and possession of
their lands, and the same duty to pay
taxes and interest while their deeds
remain in escrow, but the escrow
period is made short.
BUT, UNDER THE NEW AGREE
MENT, the minimum net value of the
lands subscribed must be $3,O00,000
instead of $2,500,0O0, in order to en-
road and the Development Company.
But this increase in the amount of
lands also increases the margin of
security of the landowners as holders
Of the preferred stock, because the
mortgage to be placed upon the lands
in aid of the railroad financing is linn
tied.
BY OCTOBER /, 1922, the new ,on-
tracts must all be signed and ap-
proved, subscribing the required
amount of lands. Notice will then be
given calling for abstracts and deeds
to be placed in escrow within 80 days
from date of notice.
BY DECEMBER /, 1922, if the new
contracts have been obtained as re-
quired, the Syndicate is required to
have the railroad company organized
and financed and to complete the sew
eral steps making up the guaranty
that the railroad will be built and to
present to the Trustees a statement
and assurance signed by the Syndi-
cate that the railroad will be built
in compliance with the terms Of the
new agreement.
BY JANUARY 1, 1923, the Syndi-
cate is required to have actual con-
struction of the roadbed commenced;
from, that data
to have the railroad completed and
in operation.
STRONGER SECURITY, for all
parties, is made by appointing two
trustees instead OF one, as under the
old contract, namely: The Durango
Trust Company, and the Title lnsur-
ance and Trust Company of Los An
peles. Both are made equally respon-
sible for the faithful execution of the
trust. But all escrow deeds will be
held by The Durango Trust Compa- :,
in the Basin. J.
REASONABLE EXTENSION Or
TIME is provided for as to any step,
such as raising the lands. which must
be done by fixed date. A new com
mittee called the RAILWAY EAECU-
TIVE COMMITTEE is created. This
committee and the Executive Com
mittee of the Syndicate are authoriz-
ed, if both agree, to grant reasonaGie
extensions if necessary to avola tne
mis- efortune of this railroad plan fail
ing simply because some importan.
step could not be completed Dy SCI
date. This is simply a precaulioh
against emergencies that might arise.
Extension of time for completing ire
railroad, in case of unavoidable de,
lay is also provided for as In the olo
agreement.
THE GUARANTY FOR COMPILE
TION OF THE RAILROAD, connlstf
of several important elements. FIRST,
the syndicate has already organizel
the Development Company ana mas
given written assurance that IL mas