Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1872-02-01
The Safe Investment of Money

The pending negotiations between Messrs
Jay Cooke & Co. and the Rothschlds on the
one hand, and the United States government
on the other which negotiations promise to
result in funding the whole of our national
debt at 4. Al and 5 per cent. iuterest-vith
saving to our taxpayers of at least twenty-five
million dollars year-add new prestige to the
eminent American bankers above named and
give increased importance to their opinions of
various investment securities In financial
circular Just issued. Messrs. jaw Cooke 4 Co.
state the following facts about favorite rail-
road security now on the market:
BANKING HOUSE OF JAY Cooke * Co..
Philadelphia, January, 1872.
The Northern Pacific Railroad Company
offers to the public an investment security
which combines the ready negotiability the
convenience. and the high credit of first
class Railroad Bond with the solidity and
safety of Real Estate Mortgage OF Land
worth at least twice the amount loaned.
TRAFFIc.-As officially reported. the gross
earnings of the present Pacific Railroad
union and CentraD for 1871. the second year
of through business December earnings esti-
mated, reach seventeen millions and quar-
ter OF this, 65 per cent. IL from local busi-
ness, and it is stated, fully So per cent, or
nearly nine and half millions, are net over
operating expenses
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 III distance, grades,
climate and tributary fertile country, the
Northern Pacific is assured of a vast and
profitable business from the outset. with q
large increase for the future
The VALUE OF LAND GRANTs.-The average
price at which the twenty-six leading land
grant railroads have thus far sold their lands
is 81. 04 per acre the highest average of any
grant being Sl3.9S, and the lowest 1907. With
few exceptions, the acreage selling prace has
steadily increased from year to year The
lands of the Northern Pacific Road are
admitted. by all who have seen them, to be
better and more saleabs than those Of most
other grants but sold at the general average
of S7.04 per acre, they will yield more than
Sl61, 900 per mile of road--more than three
times the possible cost of construction and
equipment or, at the lowest average of any
grant (s3 .07), they will produce more than
$40, 900 per mile. These facts regarding Pa
cific Railroad earnings, and the market value
of railroad lands, as shown by actual sales to
settlers show the threefold security of
Northern Pacific Railroad Bonds.
CoNsTRuoTIoN.-Th road is now completed
across Minnesota (255 miles,; work is pro
crossing westward through Dakota and IS
miles are under construction on the Pacific
coast. Including purchased lines, the North
ern Pacific Company now has under Its man
agement $50 miles of finished track. Contracts
are let for the construction of 635 miles more
to be finished before the close of 1872.
The 7-30 GOLD BONDS. The first mortgage
bonds of this company, 1chich, after tatU IN
yestigdtion, noe strongly recommend as reliable
and unusually profitable Investment, and lchich
no1r stand among the solid and fdrOrde securi-
ties Of the country, have the following leading
features
l. They are exempt from United States tax;
the principal and interest are payable IN gold,
tEa ,rNtnr
semi-annually at the rate of $40 per cent
per annum. Denominations, from 800 to
$4,000. Present selling price, par and ac-
crued II terest i'll currency.
g. The bonds are first and only mortgage
on the road, its equipments and earnings, and
also on a land grant, which, on the the com-
pletion of the road, will average $4,000 acres
to each mile of track.
3. They are at all times receivable at 10 per
cent premium G.l0), III payment or exchange
for the Company's land at market prlces--a
provision which practically gives the holder
the power of foreclosure at will.
4. The proceeds of all sales Of land are re-
quired to be devoted by the trustt es of the
bondholders (Messrs. Jay Cooke and j Ed
gar Thomson) as sinking fund to the pur
chase and cancellation of the frst mortgage
bonds, or temporarily to the payment of in
terest thereon if necessary
EXCHANGING 5-20s.--In view Of the ability
and fixed policy OF the Government TO call IN
its 5-20s and substitute low interest bond
Sl40 900, 900 having been called in for cancel
lation since September many holders of
5-20s are exchanging them for Northern Pa
cities, thus adding to their principal the pres
ent premium on Government Bonds, and
increasing their yearly interest income nearly
one third
All marketable stocks and bonds will be
received at current prices in exchange for
Northern Pacific Seven-Thirties without ex-
pense to the investor.