, 1873-09-20
NORTHERN PACIFIC.

NQOh0 q W.
NORTHERN PACIFIC.
What is to become Of tho Northern Pacific
Railroad The question inevitably rises upon
the suspension OF Jay Cooke l. Co. The con-
atruction Of tho Northern Pacific may ba said to
have boon exclusivoly IN tho hands Of this firm.
Tho only partners Jay Cooke l. Co. had in tho
enterprise wore the bondholders. Jay Cooke 4
Co. having failed, there is but ono way in which
the road can bo completed. and that is for tho
sumo tts construction to Puget Sound. Thore is
nobody else to do 1t. The stock OF tho road Is
merely nominal But 100000 has boon paid in
on stock subscriptions, and Jay Cooke con-
trollod that. Tho Government neyor advanced
any money and has no interest in the road.
Thoro have been no municipal subsidiea, for
thero aro no municipalitles On tho limo Of tho
road to subscribe them. There was "Credlt
Moblior" ring in 1t, of COURSE making profits
out Of the construction, but that will 60 to pot
along with Jay Cooke & Co. Another such ring
cannot be formed, for it would DO impossible for
them to dispoae Of the bonds. Tho prosont
bondholdora, whoovcr they arc, own what thoro
is Of the Northern Pacific, which consists Of
about GOO miles Of poorly-constructed road run
ming through Wilderness, and Immigrant
equal to tho proportion Of railroad already COM
plotod, and not exceeding 5,000, 900 OF unBala-
bio acres located in bleak and dosolato strotch
Of country.
The situation Is anything but cheering. II
tho bondholders lot tho enterprise como to
standstill, their property Is absolutely valucloHH.
Tint portion Of the main line already completed
will not paY operating expenses, oven concoding
that tho branch roads that hayo boon bought by
tho Northorn Pacific may be operated at profit.
II tho road as 1t stands cannot earn enough to
pay expenses, Of course the interost on tho
bonds will not bo paid. It has boon paid horc-
tofore only by the sale Of now bonds. This re-
source has bcen cut of, or b1caars. Jay Cooke L
Co. would not have suspended. II tho intorost
On the bonds is not to DO paid, thon tho bonds
aro absolutely worthless 60 long as the road
Is in Its present condition. What is tho
prospect that tho bondholdera will complete tho
road7 1t could only be dono ut all by concon-
tration Of interosts, and tho bonds havo bcen
scattered about as were mover railroad bonda bo-
fore. It Is impossible as yet to say where they
lave boen placed or what amount has been sold.
The impression is that somewhere botween
twonty and thirty millions have been disposed
OF, but thia is m impression which comea from
Jay Cooke 4 Co., who aro tho only porsons who
know anything about 1t. Tho COO miles Of road
which have been completed would represent, at
coat Of s25 900 mile, s15.000,00o. Tho inter-
est paid out Of tho sale of bonds, thodiscounts on
tho larger Hales tho commissions paid to brokers,
tho fraudulent profits made by construction
companies, md tho various leakagaa incident to
such flssh enterprises, will probably account for
$40, ,o0o,0 600 moro, making an aggregate of s25,-
100000 OF bonds issued Thoro will bo nearly
$2,000,000 year interest to pay and nothing
to pay 1t with. When this shall DO demonstrated,
there is no doubt that Northern Pacific bonds
can be bought at aB low figures as tho bogus
buyers. however, unlosa syndicate eau DO
formed for the completion Of tho road. There
nrc about 1,200 miles Of road yot to bo built. It
will require, ut low estinate, $4,000 milo
to build and equip the road, or s3G oo0 900 moro.
Tho parties who undertake It must have tho
money bofore thoy begin. They can expect
little or no aid from tho sale Of
more bonds to tho public. The only i'm
mediate return for m investmont Of 8,000,-
900 more would be the title to the Congressional
grant, which consists Of A. 00o, ,U00 acres Of mora
OF less hhrreu and unaalablo land. Thoy could
not count upon tho road paying expenses eyon
WHOM completed. They could not count upon
tile aalo Of their lands until tho o1igonclcB Of
mankind demand their occupancy, aud this ia
far away In tho dim distance. The prospect for
the completion Of the road ia, therefore, very re-
motc Something might be mado by selling tho
east end Of tho road to the Canadians. but be-
yond this and the prospective value Of tho landu
for settlement and occupancy thoy hayo no ap-
parent recourse. What those items may amount
to tno only Gun toll.
There is no occasion to draw q moral from the
present woful condition Of Northern Pacific. It
la one Of claBs Of bubbloH that can noyor bo TO-
peatod In this country. The dilapidatcd ruin 1t
presontst oven before 1t is completed, datos back
to tue time Of tho Congressional land.grant.
When Congress- deliberately gaye away
100000 aosos, or "a, ,423 square milos,
OF tho public domain for building a
/ railroad through q wlldornoss, It perpotrat-
cd an enormous outrage upon tho people, which
could never como to good. Hero WAS an ON
plzs, larger ln area than the two states Of 1ndl.