Holmes County Republican. [volume] (Millersburg, Holmes Co., O. [Ohio]) 1870-1895, 1873-10-16
NORTHERN PACIFIC r. r.

A few days since we gave some
facts bearing on the surroundings
and prospects ofthe Northern Pa
cifiC R. r, as furnished us by a
gentleman who has been over the
entire route. In order to perfect
fairness, we feel bound to mention
some statements which give anoth
er and different showing. In 1871,
application having been made to
capitalists in Vienna and Berlin for
the negotiation of the bonds of the
road, two experts were sent, one by
the Union Bank of Vienna, and the
other by Berlin capitalist, to inves-
tigate the condition and prospects
of the road. They reported unfavor
ably to the effect that there was
not proper security for the propos-
ed loan, and the affair fell through.
The reports by some means were
suppressed, and Jay Cooke & Co.
assumed the bu siness of negotiating
the loan, and it was principallp
placed among persons in moderate
circumstances in this country.
The experts from Berlin, Herr
Hass, reports that the estimate for
constructing the road $85, 200, 900,
nett, or $100,0OO,OOO in bonds-is
ample, and that the land will in time
bring a good price, being Of excel
ent quality; also that it would pro-
vide for the repay ment of the princi-
pal at maturity. The interest on
the bonds will amount to 81, 200, 900
year in gold. This it will require
gross annual income of about 500
100000 the profits on American
railways amounting on the average
to 35 per cent of the earnings.
Herr Has can see no prospect of
Northern Pacific Railroad earning
$2O,OO0,000 year for long time
to come. The present population
of the States through which it pass
es is only 600, 900, and if the whole
region should develop as rapidly
say as Minnesota has developed
since the, introduction of railways
it would still have in 1880, scatter
ed over $4,000 square miles of sur
face, population only so per cent
larger than that of New York City
at the present time. This could,
not yield much, and the transcon-
tinental trade would add but little
to it.
In case of deficiency in the earn
ings, the company is allowed to pay
the interest by borrowing from its
land fund, which is pledged for the
redemptian of the bonds. But for
many years the land fund will yield
but little. There are extensive Gov
ernment lands along the line of the
railway which can be taken up un-
der the homestead law, and immen Sc
tracts Of the railway lands must be
utterly unsaleable until there has
been an enormous advance of settle
meuts. 'It is certain" concludes
Herr Haas, "that a longer or short
period will onsue, Immediately up
on the opening of the line, during
which the bond holders will have to
forego interest"
This it will be remembered is but
one side of the question, although
it is strongly supported. Whether
there will be a rush of travel into
the Yellowstone region, or a mark
ed development OF through freights
from Portland, or whether the profits
from the Columbia river line of
steamers will contrib ute to pay the
interest fund, we do not know.
There are some $15, 600, 900 differ
ence between the face of the bonds,
and the estimated cost of the road,
which estimate the Germain admits
to be liberal. This would provide
two years interest. Still after all
is said, this showing is to the effect
that for some years the bondholders
must be without interest, although
the ultimate value of their bonds
seems assured.-Pittsbrrg Gazette.