Eaton weekly Democrat. [volume] (Eaton, Ohio) 1866-1875, 1872-02-01
The Safe Investment Of Money.

AV S0AC "a ~
The pending negotiations bstween Asssrs.
Jay Cooke L Ce. and the Rothschilds on the
one hand, and the United States Govern
ment on the other, which negotiations pro-
mise to result in funding the whole of our
national debt at 4, II and 5 per cent. inter
est-wtth a saving to our taxpayers of at
least twenty-five million dollars a year-add
new prestige to the eminent American
bankers above named, and give increased
Importance to their opinion of various in
vestment securities. In a financial circular
just issued, Messrs. Jay Cooke & Co. state
the following facts about a favorite railroad
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 a
frst-class Railroad Bond, with the solidity
and safety of a Real Estate Mortgage
on Land worth at least twice the amount
loaned.
TnArr1O...A. officially reported, the gross
(Union and Central) for 1871, The second
year of through business December
earnings estimated), reach seventeen mil
lions and a quarter. Of this, IS per cent
fully 65 per cent, or nearly nine and d
half millions, are net over operating ex-
penses.
An equal traffic on the Northern Paaifc.
! pOdu Will pay ultluouu y i "OI0 Indn e1
per cent. on its total cost. With its great
and unquestioned advantages in distance,
grades, climate, and tributary fertile
country, the Northern Pacific is assured
the outset, with a large increase for the
future.
THE VALUE OF LAND GRANrs.-The aver
age 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 $1S.9s, and the lowest
$3.O7. With few exceptions, the average
selling price 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 saleable than
those of most other grants, but, sold at the
general average of $7.04 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 low
est average of any grant ($3.O7), they
will produce more than $4,000 per mile.
These facts regarding Pacific Railroad earn
ings, and the market value of railroad lands
as shown by actual sales to settlers, show the
three-fold security of Northern Pacific Rail-
road bonds.
CoNsrRUcrIoN.-The road is now completed
across Minnesota (255 miles) work is pro-
crossing westward through Dakota, and 65
miles are under construction on the Pacific
coast. Including purchased lines, the
Northern Pacific Company now has under
its management SIS miles of finished track.
contracts are let 10r the construction OF 900
miles more, to be finished before the close
of 1872.
TIE 100 GOLD BoNDs.-The first mort
gage bonds of this company, achich, after fnA
Investigation, zoe strongly recommend as a re-
liable and unusually profitable Investment, and
1ohich no1o stand among the solid and faporite
securities of the country, have the following
leading features:
1. They are exempt from United States
tax, the principal and interest are payable
~ nO1d tho nrinninol in thirty unoro on1
the interest -semi-annually at the rate o.
Z $40 per cent. per annum. Denomina.
tions, from 800 to $4,000. Present sell
ing price, par and accrued interest in cur
, rency.
!, 2. The bonds are a first and only mort,
gage on the road, its equipments and earn.
, ings, and also on a Immigrant, which, or
: the completion of the road, will average
%, 900 acres to each mile of track.
I 8. They are ct all times receivable at II
per cent. premium (1.10G in payment or ex
change for the ~Company's land at marke
: prices-a provision which pract cally give
i the holder the power of foreclosure at will.
3 4. The proceeds of all sales of land ar
required to be devoted by the trustees of tn
bondholders (Messrs. Jay Cooke and ]. Ed
l gar Thomson) as a sinking fund to the pur
: chase and cancellation of the first mortgag
+ bonds, or temporarily to the payment of in
i terest thereon if necessary.
9 EXCHANGING 5-20s.-In view of the abilit,
and fxed policy of the Government to cal
in its 5-20s and substitute a low-interes
bond-$l4O, O0O, 900 having been called in 70
cancellation since September Imam,
!, holders of 5-2os are exchanging them 70
Northern Pacifcs, thus adding to thei
principal the present premium on Govern
] ment Bonds, and increasing their yearly in
. terest income nearly one-third.
ALI marketable stocks and bonds will b
received at current prices in exchange fc
Nolthern Pacific Seven-Thirties without e1
= pense to the investor.-[Com.