DIY History | Transcribe | Building the Transcontinental Railroad | Chouteau, Jr., Sanford & Co., Thomas C. Durant and Henry Farnam correspondence regarding railroad iron, New York, N.Y., 1855

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Chouteau, Jr., Sanford & Co., Thomas C. Durant and Henry Farnam correspondence regarding railroad iron, New York, N.Y., 1855

Page 02

interest at 7% per annum.
The above named acceptances with the exception of about $120.000 hereafter provided for, are to be endorsed, one half by Jos. E. Sheffield Esq. & one half by Clark Durant Esq., or other endorser satisfactory to us, or other satisfactory collateral security.
It is understood that in place of about $120.000 of any of the above named acceptances at our option, we are to receive the notes of Henry Farnam in favor of Thos. C Durant; the prompt payment of said notes to be secured by a deposit with us of an amount of Stock of the Chicago  & Rock Island R R Co. which valued at 73% of its par value, shall equal the amount of said notes, with authority expressed in said notes respectively to the holder thereof, to sell the amount of said Stock deposited as security for each note, at the Board of Brokers in the city of New York, on the non payment of each of said notes respectively, & apply the proceeds of each towards the payment of said notes. It being understood that if the market value of said stock should decline, you will deposit with us such a further amount of said stock as may be necessary to make it market value at all times equal ten per cent more than the amount of all said notes. A failure on your part to make such additional deposits, to be considered as authority to us to sell at once, at the Board of Brokers in New York, all the stock that may have been deposited with us; the proceeds of said sale to be applied towards the payment of said notes.
3rd. That you pay to us in cash, on the arrival of each invoice of the Iron, an amount equal to the freight & insurance as paid by us for account of the company, on a like quantity of the Iron borrowed by us; & also in cash, the difference between the U.S. Duty as levied on said Invoice, & the Duty as paid or assumed by us on a like quantity of the Iron borrowed of the Company.
4th. That you pay us in cash, on the arrival of all the Iron,

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interest at 7% per annum. The above named acceptances with the exception of about $120.000 hereafter provided for, are to be endorsed, one half by Jos. E. Sheffield Esq. & one half by Clark Durant Esq., or other endorser satisfactory to us, or other satisfactory collateral security. It is understood that in place of about $120.000 of any of the above named acceptances at our option, we are to receive the notes of Henry Farnam in favor of Thos. C Durant; the prompt payment of said notes to be secured by a deposit with us of an amount of Stock of the Chicago & Rock Island R R Co. which valued at 73% of its par value, shall equal the amount of said notes, with authority expressed in said notes respectively to the holder thereof, to sell the amount of said Stock deposited as security for each note, at the Board of Brokers in the city of New York, on the non payment of each of said notes respectively, & apply the proceeds of each towards the payment of said notes. It being understood that if the market value of said stock should decline, you will deposit with us such a further amount of said stock as may be necessary to make it market value at all times equal ten per cent more than the amount of all said notes. A failure on your part to make such additional deposits, to be considered as authority to us to sell at once, at the Board of Brokers in New York, all the stock that may have been deposited with us; the proceeds of said sale to be applied towards the payment of said notes. 3rd. That you pay to us in cash, on the arrival of each invoice of the Iron, an amount equal to the freight & insurance as paid by us for account of the company, on a like quantity of the Iron borrowed by us; & also in cash, the difference between the U.S. Duty as levied on said Invoice, & the Duty as paid or assumed by us on a like quantity of the Iron borrowed of the Company. 4th. That you pay us in cash, on the arrival of all the Iron,