The true northerner., 1872-02-02
The Safe Investment of Money.

The pending negotiations between Messrs.
Jay Cooke x Co. and the Rothschilds on the
one hand, and the United States govern
ment on the other, which negotiations
promise TO result in funding the whole of our
national debt at A, Al and per cent inter-
est-with a saving to our taxpayers of at
least twenty-five million dollars II year-add
new prestige to the eminent American bank
ers above named, and give increased i'm
portance to their opinions of various invest
ment securieties. In financial circular just
issued, Messrs. Jay Cooke q Co. state the
following facts about a favorite railroad
security now on the market:
BANKISG House OF JAY COOKE Il Co.,
Philadelphia, January, 1872.
The Northern Pacific Railroad Company
offers to the public an investment security
which combines the ready negotiabiity, the
convenience, and the high credit of a first
class Railroad Bond, with the solidity and
safety of Real Estate Mortgage on 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
estimated,) reach seventeen millions and
quarter. OF this, 65 per cent. is from local
business, and it is stated, fully 55 per cent,
or nearly nine and a half millions, are net
over operating expenses.
An equal traffic on the Northern Pacific
Road Will pay dividend of more than 9l
per cent. on its total cost. With its great
and unquestioned advantages in distance,
grades, climate and tributary fertile coun-
try, the Northern Pacific is assured of vast
and profitable business from the out set, with
a 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 $7.04 per acre-the highest average of any
grant being $l3.9S, and the lowest $3.07.
With few exceptions, the average selling
price has steadily increased from year TO gear.
The lands of the Northern Pacific Road are
admitted, by all who have seen them, to be
better and more saleable than those of most
other grants, but, sold at the general aver
age of $7.04 per acre, they will yield more
than SIG 900 per mile of road--more than
three times the possible cost of construction
and equipment, or at the lowest average Of
any grant $500, they will produce more
than $40 900 per mile. These facts regard
ing Pacific Railroad earnings, and the mar
ket value of railroad lands, as shown by
actual sales to settlers, show the three-fold
security OF Northern Pacific Railroad Bonds
CoNsTRUCTIoN.-The road is now completed
across Minnesota (255 miles) work is pro-
crossing westward through Dakota, and 65
coast. Including purchased lines, the North
ern Pacific Company now has under its
management SIS miles of finished track.
Contracts are let for the construction of 635
miles more, to be finished before the close of
1872.
THE 7-3O GOLD BoNpS.-The first mortgage
bonds of this company, phich. after fuH in-
Uestigatt0n, zoe strongly recommend as a relsa-
bic and unusually profitable Investment, and
i IL.
securities of the country, have the following
leading features:
|. They are exempt from United States
tax the principal and interest are payable
in gold, the principal in thirty years, and
the interest semi-annually at the rate of
Z $40 per cent. per annum. Denominations,
from $l00 to $40 900. Present selling price,
par and accrued interest in currency.
.. The bonds are first and only mort
gage on the road, its equipments and earn
ings, and also on land-grant, which, on the
completion 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 (l.1O), in payment or ex-
change for the Company's land at market
prices-a provision which practically gives
the holder the power Of foreclosure at will.
4. The proceeds of all sales of land are re-
qured to be devoted by the trustees of the
bondholders (Messrs. Jay Cooke and j. Ed
gar Thomson) as q sinking fund to the pur-
chase and cancellation of the first mortgage
bonds, or temporarily to the payment of in
terest thereon if necessary.
EXCHANGING s. 5-20s.-In view of the ability |
and fixed policy of the Government TO call
in its 5-20s and substitute a low interest |
bond-Sl4O, 900 900 having been called in for
since September many hold
ers of 5-2Os are exchanging them for North
ern Paciics, thus adding to their principal
the present 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 Sevcn-Thirtes without ex-
pense to the investor.--[Com.