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Show WESTEEffl-PHOKC PAYS'' ;:: -: ::v --piESTlFilESTflFll The first seml-anual Interest on the $50,000,000 of Western Pacific bonds has Just been paid". ; The road not being in pperation , yet. the money to. pay the bond Interest had to be taken from the money raised "by. the sale of the bonds themselves. And such will continue con-tinue to be the case for each semi-annual interest payment until the road is actually constructed. When the latter lat-ter is accomplished, the Denver & Rio Grande and Rio Grande Western rtfads agree to pay the Interest on Western Pacific first mortgage bonds, provided that company is unable to do so. Must Pay Outf Principal. Owing to this state of affairs, the Western Pacific people have not so much money at their command for the building of the road as appears upon the face of things. Of course, if more Is needed than what the $50,000,000 of bonds has furnished if will be forthcoming. forth-coming. As the $50,000,000 of bonds were sold at a discount, of 10 per cent, they actually produced $45,000,000 In cash. The bonds bear 6 per cent Interest, Inter-est, or $2,500,000 a year. - It la conceded it will take three years from last May to complete the line. So. three years' interest, or a cum amounting to $7,-500,000, $7,-500,000, must be taken out of the $45,-000.000 $45,-000.000 in cash. This brings the latter down to $37,600,000. Put Out at Interest. ' Western Pacific people say that of the latter available cash fund fully $30,. 000.000 of it is drawing interest in the East at 5 per cent. If the average could be maintained over the three years of construction, the cash fund would be credited with about $4,500,000. But as construction progresses some of the fund now out at interest will have to be withdrawn. Officials of the company estimate that the $30,000,000 now out at interest will earn the company com-pany in three years about $3,000,000. The latter added to the $37,500,000 already al-ready mentioned will give the company $40,600,000 in cash available for construction. con-struction. " ' It is admitted that under the terms of the $50,000,000 bonds sale none of the money so raised can ba-usWJ for other than main line construction. |