Dear Sir:
I beg to hand you herewith a report from the auditor of the earnings of the Silverton Railroad for the years 1889, 1890 and 1891, showing also the mileage and bonded debt.
I may add for your information that this road is built through the famous Red Mountain district of the San Juan Country, in which are located the well-known Yankee Girl and Guston mines, besides many other producing properties.
This is the only road that can be built through this district because of lack of room. The mines mentioned are large producers, and there are many more which are being developed rapidly. This is one of the best known mining districts in Colorado. From Ironton to the town of Ouray, which is reached by another branch of the Denver & Rio Grande, the distance is seven miles over very precipitous country.
The reason the road has not been extended to Ouray is because of the excessive cost, but capitalists are now engaged in making estimates and plans for an electric road to cover this distance to follow the line of the Mears toll road as indicated on the map. (No map accompanies this material.) A line of this kind can be built to operate much more cheaply than a railway line, and we have good reason to expect that this gap may be so filled during this year. At the present time stages make daily trips each way over the toll road, and the trip from Silverton to Ouray is a favorite one with the tourists on account of the beauty and grandeur of the scenery on the toll road.
There is every reason to expect that the earnings for the year 1892 will increase in the same proportion as in the past, and will continue for a great many years. The Silverton Railroad is also authorized to build up the Animas River. We would like very much this year to extend the road in that direction some 12 or 15 miles in order to reach a very rich and valuable mining district. There are a great many very extensive mines of low grade material lying between Silverton and the summit of the range towards the northeast, and our object in offering to you the bonds of the present line of the railroad is to obtain funds to extend the line up the Animas River.
We can offer you at the present time $400,000 out of a total of $425,000. These bonds are issued in denominations of $1,000 each. The interest is payable semi-annually on the first of April and the first of October at the rate of six per cent per annum in U. S. gold coin.
Yours very truly, John L. McNeil,[3] Treasurer.
AMERICAN SOCIETY OF CIVIL ENGINEERS.
INSTITUTED 1852.