American citizen. [volume] (Canton, Miss.) 1864-1890, 1872-01-27
The Safe Investment of Money.

IJulC vi
The pending negotiations between Messrs
Jay Cooke & Co. and the RothsChild
on the one hand, and the United State
Government on the other, which ncgotia
tions promise to result in funding the
whole of our National debt at 4, AZ
and per cent. interest, with saving tt
our taxpayers of at least twenty-five
Million Dollars year, add new prestige
to the eminent American bankers above
named, and give increased importance tt
their opinions of various investment Sc
curities.
In financial circular just issued
Messrs. Jay Cooke d Co. state the follow
ing facts about favorable Railroad Sc
curity now on the market:
OFFICE OF JAY COOKE Il Co., BANKERS,
PHILADELPHIA, January, 1872 {
The Northern Pacific Railroad Compa
ny offers to the public an investment
security which combines the ready nego
liability, the convenience, and the higl
credit of first class Railroad Bond, will
the solidity and safety of Real Estate
Mortgage on Land worth at least twice
the amount loaned.
Irdhc.-As officially reported, the gross
earnings of the present Pacific Railroad
Union and Central for 1871, the second
year of through business, December
earnings cstimateD reach Seventeen Mil
lions and Quarter. OF this, 60 per cent,
is from Local business, and, it is stated
fully IS per cent, or nearly Nine and a
Half Millions, are net over operating eX'
penses.
An equal traffic on the Northern Pacific
Road will pay dividend of more than
81 per cent on its total cost. With its
great and unquestioned advantages is dis
lance, grades, climate and tributary fer
tile country, the Northern Pacific is
assured of a vast and profitable business
from the outset, with "A large increase for
the future.
The Ialue Of Land G1unts.-The average
price at which the twenty-siX leading
Land grant Railroads have thus far sold
their lands is S704 per acre-thc highest
average of any grant being S139S, and
the lowest 1907. With few exceptions,
tie acetage selling prize las s'ead|ly increased
from gear to gear. The lands of the North
ern Pacific Road are admitted, by all who
have seen them, to be better and more
salable than those of most other grants,
but, sold at the general average of S704
per acre, they will yield more than $16l,-
600 per mile of road-morc than three
times the possible cost of construction and
equipment or, at the lowest average
of any grant $500, they will produce
more than $4,000 per mile These facts
regarding Pacific Railroad earnings, and
the market value of Railroad Lands, as
shown by actual sales to settlers, show
the threc-fold security of Northern Paci-
fic Railroad Bonds.
Construction. The road is now COM
pleted across Minnesota, ESQ niles work
is progressing westward through Dakota,
and IS miles are under construction on
the Pacific coast. Including purchased
lines, the Northern Pacific Company now
has under its management SO miles OF
finished track. Contracts are let for the
construction of 635 miles more, to be
finished before the close of 1872.
Tie 7.30 G0d Bonds. THE first mort
gage bonds of this company, arhih, after
tuH investigations, 1ce strongly recommend as
q rcliaJIe and uHUsuaIly profitable Unrest
meat, and ~hich H0lc Stand among tile s0tW
and titgo,3te securities If tie coH5ttIy have
the following leading features:
/. They are exempt from United States
tax the Principal and Interest are paya-
bic in gold-the principal in thirty years,
and the interest semi-annually at the rate
of $40 per cent. per annum. Denomi-
nations, from 800 to $4,000. Present
selling price-par and accrued interest in
currency.
9 The bonds are a first and only Mort
gage on the Road its Equipments and
Earnings, and also on Land Grant
~ Ia; oh ~, tlo ,on,,1otinn nf tho Road
will average %, 600 acres to each mile of
rack.
3. They are at all times receivable at 10
per cent. premium Q.10, in payment or
Exchange for the Company's Land at
market prices-a provision which practi-
ally gives the holder the power of fore
closure at will.
4. The proceeds of all sales of Land are
Iuired to be devoted by the Trustees of
he bondholders (Mcssrs. Jay Cooke and |
!. Edgar thomson, as Sinking Fund to /.
he purchase and cancellation of the first /.
mortgage bonds, or temporarily to the .
payment of interest thereon if necess ry. |
E,rchdHgiHg 5-20s.-ln view of the ability |
nd fixed policy of the Government to |
all in its j-20s and substitute low-inter-
st bond-$140, 100000 having been called .
n for cancellation since September 1st-
many holders of j-20s are exchanging them .
or Northern Pacitics, thus adding to their |
principal the present premium on Govern
ncnt Bonds, and increasing their yearly /
interest income nearly one-third.
All marketable stocks and bonds will be |
eceived at current prices in exchange for
Northern Pacific Seven-Thirtics without .
Expense to the investors.
JAY COOKE & Co.,
New York and Washington, Finan- /
cial Agents Northern Pacific Raoad.
N,r al. LIZ Rnr,ls nnl RnInlEnrs trnnnrnllN- |