Show detinue proposal for bollal tunnel ton if denver votes bonds erb agrees to complete road to salt lake city by time bore Is finished that the ati denver A salt lake railroad will be ex tended from craig to salt lake while the james peak tunnel ja is in course of construction and offering to guarantee the city of denver deaver against all costs in return for the loan of its lt credit newman erb president of the company which bought the road tram from the to re behers last monday april 28 ha written a letter to the tunnel committee of the commercial bodies in which he be outlines out linea his bl intent lona to re garding carding the financing and PrO secil tion of the work heretofore mr erbs erbo proposal has ban been embraced only in the speech he be delivered at the chamber of commerce last laet fall and the tallu talks be dias aha had with various persons persona interested in the tunnel move movement meaL he never before has baa stated elated as he does doe in this totter letter that the cost coif ot construction of a bore through the continental divide will be as 06 low mi as of which he be will provide one third his HIB letter will be used faed aa u an argument in the tunnel campaign which will be opened at once by the ta moffat tunnel association the proposal aaa follows follow first the city or of denver shall hall undertake under tak the construction of the rocky mountain tunnel providing th the m i to pay two actual cost through aa of forty or fifty year four per cent sinking fund bonds redeemable at yr per cent ent of their per par value within live five years at any interest period on three m montha th I 1 notice this bond issue ahall not nol exceed second the ownership ut u and title to the tunnel and its it approaches dball belong to the city of at den ver third the denver ft salt lake railroad company before the work to la begun shall ahall deposit with an ac septable cep table trust company in cash or current securities having an immell ato ate cash value of one third of the estimated cost bet to be available as required for the purpose of cf paying one third of the cost coat to be consider ed as the consideration for ion an option to purchase the tunnel and approaches pro aches at any time after five years yeara for the cost coat to the city as evl danced by the bonds bonda outstanding at the time issued tor for account of such construction with accrued interest fourth the railroad company agrees to pay the interest on the bonds so issued during construction construct lon and add when the tunnel is completed to pay a rental for its use equal to the interest on the effle tunnel bood bonds out stair ding plus one per cent per an num for a sinking fund for or the retirement ti rement of the bonds and also entire n cost of maintenance and opera tion alon fifth the work la Is to bo be done by a commission of which the rail road company shall have a one third representation sixth if tibe the estimated cost od 0 the tunnel exceeds the railroad company shall have hv the right to build this thi tunnel itself in accordance with the plant plane and aped approved by the comale slon sion and under its ILs supervision for the city of denver and receive payment and ac the work pro greases under appropriate imitations and restrictions on a basis bai that will limit the cost to the city to ai 3 in other words the railroad company will pay the entire excess of 0 cost coat beyond including the interest of tho the toads bond during burins construction seventh additional tenant nay be admitted to the th ute of the th tunnel and its approaches by paying their ce uch such centols and the tae interest on tie the roaey money invested by the denver deaver ft salt lake railroad company or its ite successors cenance and operation to be b paid for 0 on a lago basis tr proposal fata latea thu U appropriate provisions shall ball be b made for safeguarding the city in the payment of tta its part of the cost coat ot of the work as the same eatoe progresses aBes the city will have title to the tunnel and approaches and absolute solute Rb owner ship thereof for or two third thirds of its continued ConUi Conti Dued on page i 4 DEFINITE PROPOSAL FOR MOFFAT TUNNEL continued from page 1 actual cost coat la in no vent exceeding through the contribution of at luit least one third of tile the cost coat and aad the payment of interest Inte during construction the city of denver has a substantial adequate and complete guaranty that the interest und and sinking fund requirements for the retirement of the bondo bon do at or before maturity will tee be promptly met no burden Is in imposed on the city of denver and its ita tax payers the existing tonnage of tahe railroad as now being developed will be sufficient uffa to justify by its ita saving baying in transportation expenses the charges which alch the usa ue of tho the tunnel will ima impose pose and which saving la Is in ex excena of f the ints ln rest and sinking fund re quire ments and maintenance cost coat when the bond issued by the city shall all have been Te retired tired through payment by the railroad company subject however to tle right ot of other railroads to use the tunnel toned on the th terms briefly te d above the question will naturally te ie asked why tho the rd railroad company does doea not itself finance and build tl e tunnel the answer to ie that the rals ling ing of the necessary money to rein com pleto the railroad to salt lake bake f ind provide adequate equipment there fr as aa a now new enterprise without a elnan cial ra rord cord Is t a very gibat ta k la in itself to TD provide the addid 11 1 means mcana for tho the tunnel would invoke a sale of the necessary so at a price which would a bliklen of increased interest charge for many years harmful to the coin banys interests and ceitlin to io lay its construction for son BOHU time from economic reasons wo we are engaged in building nn all extension of the lb denver deliver northwest orn ern pacific railway from steam boat bolings borings to chalk chii we ex poet to have bavo completed by october 1 next if the proposition as herein embodied Is in its ite sub elements accepted ly the city wo we intend immediately to en ter tec upon the th construction cf the further extension from craig to salt lake city and to prosecute cute the work so eo as to assure amure its completion about contemporaneously with uie the completion of the tunnel |