The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1871-03-02
Wteefiug -geoister,,
From the New York independently
Some Questions Answered.


ssme Questions Answered.
To the Commercial Editor of The Mde.
pendent
Having few thousand dollars that |
shall not need in my business. and
being naturally DESTROYS Of obtaining an
investment which will produce the
greatest income consistent with entire
safety, am led to ask you the follow
ing, which I shall be glad 10 have YOU
answer, either privately or through the
columns OF the Independent:
l.. Do you think that, as q rule, first
mortgage railroad bonds are a desirable
investment In what do they differ
from first mortgage on ordinary real
estate?
2 | notice you recommend Northern
Pacific seven-thirties. to investors
Why do you regard them as unusually
secure?
3. Is the Government pledged to the
payment of these Northern Pacific
bonds ?
4. | notice they are selling Mt par
Isn't this too high ? Cannot good rail-
road securities be bought cheaper?
5. hold few five-twenties; do you
believe the Government will soon call
for their surrender?
6. What assurance have investors
that Northern Pacific seven-thirties will
not hereafter depreciate below the price
at which they are now sold, compelling
those who wish to realize on them to do
so at loss?
To the above the Independent an
swers:
l. Thus far the mortgage bonds Of
American railways have proved to be
among the very safest securities. 10
proportion TO amount they have prob
ably shown smaller percentage OF loss
in interest and principal than any other
investment that has been accessible to
the people. Such has been the history
of railway securities. OF course there
have been exceptional. cases Of misman-
agement and loss; but lar oftener have
imperfect titles, lapsed insurance poll,
cies, and shrinkages of value rendered
real estate mortgages bad investment.
There is living principle underlying a
railway bond, which applies to very
few il any other securities. This:
|. Usually the solvency Of a railroad
depends mainly upon the traffic and,
as a rule, that traffic steadily increases
as the road grows older, and the popu,
lation along It's route becomes richer
and denser. In word, the income Of
a railroad (and hence its debt-paying
ability will ordinarily keep pace with
the growth Of population.
>. A railroad once built, rapidly ere,
atcs business which is to render it
profitable. 1t develops carrying trade
which did not before exist, and which
grows much faster than the tributary
population increases in numbers.
:. 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 solvency and success OF the
road with which they are identified
This powerful combination OF private
interests constitutes a living power
whose efforts tend constantly to increase
the protitableness and soundness Of the
ENTERPRISE IN whose interest they are
enlisted =
I. Finally, after 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 bonls, 10y augment;ng the
productiveness and value of the prop.
ertv on which those bonds are based.
Ii is in this way that n second mortgage
NAV increase the safety Of the FIRST
With mortgages which rest upon I'M
proved real estate in our midst the
security steadily deteriorates with time,
as the improvement become less valu-
bic Railroads grov better and more
prosperous wiM age, and furnish a con-
staniiy Increasing security for he dcb'
created an their construction. 1t is for
these reasons that first mortgage bonds
are among the very soundest securities
that can be had.
ii. The Northern Pacific railroad has
threefold solidity, which renders it
financially impregnable |. 1t has for
its broad and firm foundation real
estate endowment Of mole than TWEEN
ty-two Thousand Acres Of fertile Land
to each mile of track OR al unincum-
bered farm of 800 acres Tin addition to
the ordinary and ample security of the
road and its ;ratfic) to secure each
$1,000 bond bought by the public. =.
1t has awaiting it a business which we
believe is certain TO render It seli-sus-
tanning from the first, and to give it a
large surplus at an early day. B. 1t is
in the hands of men of known and &C
knowledged integrity, whose financial
standing, whose business sagacity and
thorough experience, furnish complete
guaranty that economy, energy, and
fidelity will characterize its manage
ment
Ill. Government does not in form
guaranty the payment Of Northern
Pacific seven-thirties; but it indirectly
insures their payment by donating un-
re,ervedly to the company sufficient
productive lands to pay them twice over.
The belt of country in which this SUI
perb domain is situated admirably COM
bines the three elements essential to
successful farming-viz naturally
rich soil, mild climate, (the latitude
b.ipo about two degrees below Paris,