The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1871-02-22

combination of private interests constitutes
living power whose efforts tend constantly 70 in
crease the prohtableness and soundness OF the
enterprise in whose interest they are enlisted.
4. Finally, after railroad is built, every dol
lar expended in making improvements and ex-
tensions, adding new facilities for doing bust
ness and In securing valuable alliances with
connecting lines, adds to the security OF its first
mortgage bonds, by augmenting the productive
ness and value of the property on which those
bonds are based 1t is In this way that a second
mortgage may increase the safety of the first.
With mortgages which rest upon improved real
estate in our midst the security steadily dete-
riorates with time, as the Improvements become
less valuable. Railroads gro1o better and more
prosperous Nth age and furnish a constantly
increasing security for The debt created in their
construction. 1t is for these reasons that first
mortgage bonds are among the very soundest
securities that can he had.
H. The Northern Pacific Railroad has n three
fold solidity which renders il financially i'm
pregnable. 1. 1t has for its broad and firm fouu-
dation real estate endowment of more than
twenty-five Thousand Acres of fertile La ID to
each mile OF track or an unencumbered farm
of 500 acres Gin addition to the ordinary and
ample security of the road and its trafc) to
secure each $1,000 bond bought by the public.
2. 1t has awaiting IL q business which we believe
is certain to render It sef-sustaining from the
first and to give it large surplus at an early
day. 3. 1t is in the hands Of men of known aud
acknowledged integrity, whose financial stand
ing, whose business sagacity and thorough ex-
nomy, energy, and fidelity will characterize its
management.
Ill Government does not in form guarantee
the payment of Northern Pacific seven -thirties;
but it Indirectly insures their payment by donat-
ing unreseTvedy to the company sufficient pro-
ductive lands to pay them twice over. The belt
of country in which this superb domain is stu
ated admirably combines the three elements
essential to successful farming VIZ a naturally
rich soil, mild climate (the latitude being
about two degrees below Paris and six below
Lopdon), and sufficient rainfall
". When there is no difference in point of
safety, the comparative market value of various
securities is mainly determined by their pro6ta-
bleness. In this view Northern Pacific gold
seven-thirties, selling at par in currency, are by
far the cheapest investment of which we have
knowledge. Regarded as a source OF income,
they are cheaper at par than a six per cent.
gold bond at SO, and cheaper than six per cent.
currency bond at 7412. In other words, one
hun dred dollars invested in Northern Pacifc5
at par will produce larger income than the
same amount invested in a six per cent. gold
security at 49,
V. We regard it as highly probable that a
! large proportion of the present holders of Gov
ernment bonds will be compelled to give them
| up within a comparatively short time, and accept
| therefor cash payment or new five per cent.
! bond. Everything now indicates that the Gov
eminent will soon be able to fund the bulk of its
| five twenties at lower rate of interest. Hence,
! we have uniformly advised our subscribers to
! convert their Government bonds into some first
| class railroad security, having equal safety and
greater permanence and productiveness.
VI. Of course, all securities, even those OF
the United States, liable to occasional slight
| fluctuations in current price-the result of out
eide circumstances, and not of any change In
real value. But the same causes which now
render Northern Pacific seven-thirties ercep
tiondUy strong and desirable security will natu-
rally sustain them in the market so that those
who wish to convert their bonds into cash car
do so at any time without loss Indeed, with
their superabundant security, their high rate Of
interest, and the provision that they will always
be received at ten per cent premium in payment
for the company's lands, z $40 per cent. North
ern Pacific Bonds are far more likely to &C
above par in price than to fall below.