The Dolores star., 1922-07-07
FN Rs. = r
rectors and two Of them must be bona
fide residents of the Basin.

rectors and two Of them must be bona
fids residents Of the Basin.
Upon the lands being conveyed 70
the Development Company it will b
authorized to place mortgage securing
!O-year notes upon all the lands. But
It cannot mortgage said lands except
for the purpose Of refunding the ex-
listing mortgages; raising a fund to
exceed 81 900; and raising fund
tecting the lands and carrying on the
Company business. Tho total mort
gage upon these lands for all pur-
poses shall not exceed S3,0OO,OO0.
The railroad stock purchased by the
Development Company must be a ma
jority Of all the issued stock of the
railroad company and must be held
and sold in one lot 1T the best price
obtainable, but not less than par ex-
cept upon consent in writing Of 60
proceeds from sale Of the railroad
stock will be applied to retiring the
mortgage Indebtedness or the pre-
ferred stock.
The Development Company is to
sell the lands as rapidly as possible,
having due regard for sound admin
istration and for making reasonable
profit out Of the lands; and is to ap-
ply the proceeds of such sales to dis
charge of the mortgage and paying
off Of the preferred stock.
The Development Company signs
acceptance Of and binds itself by tho
terms Of the agreement.
THE PREFERRED STOCK is CIV
en- preference right both as to assets
and dividends Of the Development
Company. The common stock belong
ing to the Syndicate can receive no
dividends until all Of the preferred
stock with per cent accumulated
dividends shall have been paid in full
and retired. To understand the Sc
curity and value of this preferred
stock, 1t must be remembered that the
lands, at present value, will amount to
about $4,000,000 gross value. The
first in priority against the lands will
be the mortgage for an estimated
amount Of $2,400, 900 and which can
not exceed 100000. II the land
doubles In value upon completion of
the railroad, there will be $4,000, 600
worth Of land, besides the railroad
stock, to discharge the mortgage, re-
tire the preferred stock, and then
make q profit for the Syndicate upon
the common stock. The lands will be
preferred stock ID delivered promptly
to the landowners, 10 they may have
that immediate benefit.
THE TEN-YEAR z PER CENT
FIRST MORTGAGE NOTES Of the
Development Company are required
to be so safe and sound q to be &C.
ceptable for California savings banks
and trust companies; therefore, they
will be very desirable and should ex-
change readily for the old mortgage
notes. The old mortgages now
against the land must be exchanged
for those 10-year notes, and agree
ments for such exchange must be
placed in escrow for that purpose by
October l. 1922.
SAFETY PROVISIONS FOR THE
LANDOWNERS are contained in the
agreement. The agreements become
void unless the required amount of
lands are subscribed within the speci-
fled time; and again become void un-
less the Syndicate acomplishes all Of
the required guarantees for building
Of the railroad within the time fixed
by the contract. The Development
Company signs acceptance Of and is
bound by the terms Of the agreement.
The Syndicate instead Of holding q
bare option as before, signs and pre-
sents definite written statement and
assurance that the railroad will be
built. -
The directors Of thesSan Juan De-
velopment Company are: Harry Chan
dler, ]: H. Coverly, F.. r. Clark, Frank
A. Miller, Edward Strasburg, F. w.
Braun, Geo. w. Scott, F. X. Pfaffing-
er. M. H. Sherman, B. w. Ritter, ]. A.
Clay.