Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1872-01-31
The Safe Investment of Money.

The pending negotiations between Messrs.
Jay Cooke & Co. and the Rothschilds 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 f. AZ and per cent. interest-with
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 a financial
circular just issued, Messrs. Jay Cooke & Co.,
state the following facts about a 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 GA 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 wear
of through business December earnings esti-
mated reach seventeen millions and quar-
ter. Of this, IS per cent. is from local bust
ness, 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 a dividend of more than 81 per
cent. on its total cost. With it's great and
unquestioned advantages in distance. grades.
climate and tributary fertile country, the
Northern Pacific is assured of a vast and
profitable business from the outset, 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 81. o. per acre the highest average of any
grant being $13.99, and the lowest 53.O7. With
few exceptions, the Average selling price has
steadily increased from gear 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 average
of S7.04 per acre, they will yield more than
| $161, 900 per mile of road-more than three
times the possible cost of construction and
! equipment or at the lowest average of any
grant ($3 07), they will produce more than
$4,000 per mile. These facts regarding Pa
ciic Railroal earnings, and the market value
of railroad lands. as shown by actual sales to
settlers, show the threefold security of
Northern Pacific Railroad Bonds.
! CoNsTRUCTIoN.-The 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 it's man
agement SIS miles of finished track. Contracts
are let for the construction of 635 miles more
THE 7-30 GOLD BONDS. The first mortgage
bonds of this company, aohich, after full in
UeStigdtiOn ace strongly recommend as reliable
and unusually profitable Investment, and eoficI.
7aoao stand among the solid and fauorite secri-
ties of the country, have the following leading
| features:
1. They are exempt from United States tax:
the principal and interest are payable in gold.
the principal in thirty years, and the interest
seml-annually at the rate of $40 per cent.
per annum. Denominations, from 300 to
900. Present selling price, par and &C
crued Interest in currency.
| 2. The bonds are q 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 (1.10), IN payment or exchange
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-
CURED to be devoted by the trustees of the
bondholders (Iessrs. Jay Cooke and J Ed
gar Thomson) as a 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 5-20s.-In view of the ability
and fixed policy of the Government to call il
its 5-20s and substitute low interest bond
$40, 000,0 900 having been called in for cancel
latlon 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, anG
increasing their yearly interest income nearly
one third
All marketable stocks and bonds will be
received at current prices in exchange fol
Northern Pacific Seven-Ihirties without ex-
pense to the investor.