Railroads -- United States; Railroads -- United States -- Finance
The first stretch of road was built with few difficulties or
complications. It was commenced in 1869, and, after numerous delays, it
reached the western border of the state of Kansas on December 28 of the
same year; from this point it went on more leisurely, first west and
then southwest, to Albuquerque.[401] These early miles were paid for
from the proceeds of both stocks and bonds. From Albuquerque a variety
of routes presented themselves. The Southern Pacific had by that time
built to El Paso, and it was feasible to extend the Atchison to that
point and to rely on a traffic agreement for the handling of the
western business. Or, building to Deming near El Paso, Atchison might
have extended its line down the river valleys in the northwestern part
of Mexico to Guaymas on the Gulf of California. Or, Atchison might have
built directly west from Albuquerque. All three of these routes were
considered, and all three were eventually carried out.[402]
The connection with the Southern Pacific was not a very difficult
one to make, and the Atchison reached Deming in March, 1881. By the
traffic agreement then concluded the Atchison secured the use of the
Southern Pacific tracks from Deming to Benson, Arizona, and arranged
to build south into Mexico from this point; while the Southern Pacific
was allotted 51 per cent of the through rate on traffic passing over
Southern Pacific lines.[403] This formed the second through route
from the East, and in September, 1881, it took one-quarter as much
business as the Central Pacific. It was also the first of Atchison’s
projected routes to be completed. The line to Guaymas was added by
purchase. Instead of building, Atchison exchanged its stock for the
stock of the already existing Sonora Railroad in the proportion of one
to two, and guaranteed the interest on the Sonora first mortgage 7
per cent bonds.[404] This made up for the lack of an independent line
to the coast further north. The total of Sonora stock was $5,400,000,
requiring $2,700,000 Atchison stock in exchange. The total first
mortgage 7 per cent bond issue was $4,050,000. With the railroad came
a subsidy of $2,608,200 (American gold), equal to $11,270 (Mexican)
per mile. This subsidy kept cropping up in Atchison finance for some
time, and was finally adjusted in 1896 by the transfer to the company
of $1,159,800 in 3 per cent bonds of the Mexican Interior Consolidated
Debt.
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