Shepherdstown register. [volume] (Shepherdstown, Va. [W. Va.]) 1849-1955, 1871-03-04
From the .Ns,o York Independent.

Having Q few ihousahu collars That i
shall not need 10 my business, and being
naturally DESTROYS Of obtaining an invest
ment which will produce the creates, in.
come consistent with entire safely, am
led 10 ask you The following questions.
which shall be glad 10 have you answer,
either privately or through the columns
OF The lNDEPENDENT.
!. Do you think that. as a rule. first
mortgage railroad bonds are a desirable
investment In whs, do they differ
from first mortgage on ordinary real
estate
| notice you recommend Northern
Pacific seven.ihir,ies 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 at par.
Isn't this TOO high! Csnno. good rail-
road securities be bought cheaper +!
5. hold few fve.,weniies do you
believe the Government will soon call
for their surrender
6. What assurance have investors that
Northern Pacific seven-thirties will not
hereafter deprecisle below the price a,
which they are now sold, compelling
those who wish 10 realize on them 10 do
so at loss
To THE ABOVE The INDEPENDENT An
swERs:
|. Thus far the first mortgage bonds Of
American railways have proved TO be
among the very safest securities. In pro-
portion 10 amount, they have probably
shown smaller percentage OF los, in in
teres, and principal than any other invest
meni that has teen accessible TO the peo-
pie. Such has been the history Of rail.
way securities. Of course there have
been exceptional cases Of Encouragement
and loss ; bu! far oliener have imperfect
titles, lspsed insurance policies. and
shTinkages of value rendered real estate
mortgages bad investment. There is q
living principle underlying railway bond
which applies to very few if any other
securities. This:
!. Usually the solvency Of railroad
depends mainly upon its traffic; and, as
rule, that traffic steadily increases as the
road grows older and the population
along iis route becomes richer and denser.
In word, The income OF a railroad and
hence lie debr-paylng ability will ordI-
nary keep pace with The growth Of popu
lation.
3. A railroad, once built, rapidly Gre
dtes business which is to render It pro-
fiIabie. 1t deUeiopeS carrying trade
which did not before exist. and which
grows much faster than the tributary pop.
ulation increases in numbers.
3. A railroad usually has back OF i!
strong corporation of capitalists and
shrewd, energetic business men, whose
profits. financial standing, commercial
reputation, and official positions depend
upon the soIvency and success OF the
road with which they are ldenllhed.
This powerful combination Of private in
teresis constitutes a living power whose
efforts tend constantly 10 increase the
profiiableness and soundness OF the enter
prise in whose interest they are enlisted.
4. Finally, after railroad is built, eve.
ry dollar expended in making improve
menls and extensions, adding new td1lI-
lies for doing business, and in securing
valuable alliances with connecting lines,
adds 10 the security OF It's first mortgage
bonds, by augmen,iug The ProducuVeness
and value Ct the property on which
those bonds are based. 1t is in this way
that second mortgage may increase The
safety OF the FIRST. With mortgages
which rest upon improved real estate IN
our midst the security steadily delerIora'es
with time, as the Improvements b come
less valuable. Railroads gro,c better
and more prosperous aoiih age, and jur-
nish a constantly increasing security
for The debt created IN their construc.
ton. Ills for these reasons that brSf
mortgage bonds are among the very
soundesl securities that can be had.
ii. The Northern Pacific Railroad has
a ,hreefolJ solidily, which renders II H.
nsncially impregnable. l. 1t has Tor Its
broad and firm foundation real estate
endowment of more than twenty-five
thousand Acres Of fertile Land to each
mile of rrack-or an unencumbered farm
Of 500 acres (in addition &c the ordinary
and ample security of The road and lie
traffic. TO secure each $1,000 bond
bought by the public. 2. Il has awaiting
j, business which we believe IS certain
10 render il self.suslsinlng from the tTsf,
and to give it large surplus at an early
day. 3. 1t is in lie hands OF men OF
know and sckno wledged integrity, whose
financial standing. whose business ssgac-
ity and thorough experience, furnish
complete guaranty that economy, energy
and fidelity will characterize lis manage
Snent.
III. Government does not in form
euaraL,y the payment Of Northern Pacific
seven .tAiyiies but il indirectly insures
their payment by donating unreservedly
to the company sufficient productive lands
TO nav them twice over. The belt OF
country in which this superb DOMAIN Is
situated admirably combines the three ell
ements essential TO successful iarmlng-
viz: a naturally rich soil. mild climate
1.-THE latitude being about two degrees be-
low Paris. and six below London,) and
sufficien, rainfall.
w. When there is no difference IN
poin, of safety, The comparative market