The Dolores star., 1922-07-07
UAhARY AND EXPLANATION Of NEW AGREEMENT FOR CONSTRUCTION s! JUAN R0D
4 m =

THE ORIGINAL PLAN, Of 1921,
pri was the best plan then possible,
at the Los Angeles Syndicate had
ot then seen the Basin, ana was not
tAiliar with our needs, and had not
bed to finance the railroad or that
Ian. The people Of the Basin were
pt acquainted with the Syndicate,
nd did not know whether the lands
build be raised. After the lands had
een subscribed, serious difficultie:
fere met in financing the railroad un-
er that plan. II was found to be
Unnecessary to invest the entire value
! the lands in railroad stock; and
bth the Syndicate and the landowners
hd some objections to the "pooling"
kature Of the old plan. 1t was also
rund doubtful whether the Interstate
Dmmerce Commission would approve
e method of financing provided for
that plan. The Syndicate also de-
red leeway for building railroad ex-
nsions across the Basin and of is
ling railroad stock for that purpose
pd our Committees desired to see
ch extensions made. For these rea-
(ns new form of contract seemed
be both necessary and desirable,
pecially as the new plan provided
liter security and earlier payment
r the landowners.
THE NEW PLAN for building the
(ilroad is, in substance, that the
hdowneSs of the Basin shall sub
Tios nnder the new agreement at
Is. Ss00,000 worth Of land, at pres
y Vaaue, net over and above exist
membranes, in exchange at par
preferred stock of the San Juan
evelopment Company; which Com
ny has been organized and will take
ID hold and own such agreements
same as under the old contract.
be deeds for all Of said lands will
placed and held in escrow with The
prango Trust Company. Upon the
nds having been subscribed the Syn
cate is to organize and fully finance
railroad company; and is also to
ganlze and finance the Development
mpany; and is also to cause funds
be raised and deposited in trust as
oVlded in the agreement; and is also
present its definite assurance that
railroad will be built and COM
ted. Upon the several steps having
en- taken so as to safely assure the
lldihg of the railroad, the deeds will
delivered to the Development Com
ny, and the preferred stock of that
npany will be delivered to the
adowners in exchange for THEN
ndA, and the Development Company
OF the proceeds of mortgage
ICED upon the lands will nprchase
take the railroad stock. -
The SYNDICATE has ..lready
ae Its agreements for financing the
iroad under this new plan; and has
zen written assurance that it can
Will cause the railroad to be built
the required amount Of lands be
pscribed and conveyed under the
agreement,
HE SYNDICATE has already or
ai1ed The San Juan Development
npany to take and hold the lands
the railroad stock under this new
Ehe main differences between this
?, and s the old plan are:
NSlEAD Of the lands being held
trustee until the railroad is COM
'ea as under the old agreement)
ueeds are to be placed in escrow
Inc Durango Trust Company,
gre TO be delivered to -the De-
hent Company when the railroad
an pahy is fully organized and fl
SEQ and the guarantees are COM
S ~ ior the building and completion
N,sIEAD Of the entire value of
lands being invested in railroad
nr ~ under the old plan, the De-
smsnt n, Company, out of the pro-
= OF mortgage placed by It on the
y, s,,, VIII purchase and hold in it's
suty about $l,OO0,O0O in railroad
:, mat being majority of al the
SS.i tEsd stock issued.
;nn ;niEAp of the landowners re-
As only railroad stock, held in
20 compensation for their lands,
VIII receive the preferred stock