Delaware gazette. [volume] (Delaware, Ohio) 1855-1886, 1871-03-10
THE NORTHERN PACIFIC sECURI-
TIES.
IFrom the \. 3. Independent.l


/ I. Thus far the first mortgage bonds
lof American railways have proved to be
among the very safest securities. In
1 proportion to amount, they have pro-
badly shown smaller percentage OF
| loss in interest and principal than any
other investment that has been accessi-
| bic to the people. Such has been the
history of railway securities. Of course
there have been exceptional cases of
mismanagement and loss but far often
er have imperfect titles, lapsed insurance
policies. and shrinkages of value render
ed real estate mortgages a bad invest
ment. There IS living principle under
/ lying a railway bond, which applies to
very few if any other securities, This /:
l., Usually the solvenCy of a railroad
depends mainly upon its traffic; and. as
rule. that traffic steadily increases as
the load grows older and the population
along its route becomes richer and den
ser. In word, the income of a railroad
land hence its debt-paying ability will
ordinarily keep pace with the growth of
population.
p A railroad, once built, rapidly
creates a business which is to render it
profitable. It aeUel0beS a Carving trade
which did not before exist, and grows
much faster than the tributary population
increases in numbers.
3. a railroad usually has back of it a
strong corporation of capitalists and
shrewd, energetic business men, whose
profits, financial standing, commercial
reputation and official positions depend
upon the solvencys and success of the
road with which they are identified
This powerful combination of private in
terests constitutes living power whose
efforts tend constantly to increase the
proftabfeness and soundness of the en-
terprise IN whose interests they are en-
listed.
4. Finally, after a railroad is built,
every dollar expended in making i'm
proVements and extensions, adding new
facilities for doing business, and in Sc
curing valuable alliances with connect
ing lines, adds to the security of its first
mortgage bonds. by augmenting the
productiveness and value of the proper
ty on which these bonds are based. 1t
is IN this that a second mortgage may
increase the safety of the f1Sk With
mortgages which rest upon improved
real estate in our midst the security
stea dily deteriorates with time, as the
Improvements become less valuable.
Railroads gz1ozO better and mare z1OS6e1r
OtlS mil age agi,d furnish a constantly
increasing SeczfzZlT fer tie aebt cyeated
III tier cossStruckt07g. 1t is for these
reasons that first mortgage railroad
bonds are among the very soundest Sc
cufities that can be had.
II. The Northern Pacific Railroad has
a three fold solidity, which renders it
financially inpregnable. l 1t has for
its broad and firm foundation real
estate endowment of more than Twenty
two Thousand Acres of fertile Land to
each mile of track--or an unencumber-
ed farm of 500 acres lin addition to the
ordinary and ample security of the road
and It's traffic. to secure each 81 900
bond bought by the public. 2. 1t has
awaiting it a business which we believe
IS certain to render it self-sustaining from
the first, and to give it large surplus
at an early day. s. 1t is in the hands
of men of known and acknowledged in
tegrity, whose financial standing, whose
business sagacity and through expert
ence, furnish complete guaranty that
economy, energy, and fidelity with
characterize its management.
III. Government does not in form
guaranty the payment of Northern Pa
cific seven-thirties ; but it indirectly in
sures their payment by donating unre-
servedly to the company sufficient pro-
ductive lands to pay them twice over.
The belt of the country in which this
superb domain is situated admirably
combines the three elements essential to
successful farming--viZ: a naturally
rich soil, a mild climate (the latitude be
ing about two degrees below Paris, and
six below London, J and sufficient rain
fall