Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-10-20
THE NORTHERN PACIFIC RAIL-
RO1D


investment, feeling little doubtful about
their value. While the financial difficulty has
given the road heavy shock, and doubtless
and crippled it to some extent,
it has large resources, and is an enterprise OF
so important character, that, though It's
completion may be delayed it will eventu-
ally be accomplished
1t has recently been made known to the
public that some of the German capitalists
who had thoughts of investing in tue road,
sent over two agents to this country to examine
and report upon it, one coming from Berlin,
the other from Vienna. They went ovei the
route of the road as they alleged, and exam
ined into all its affairs and prospects, and on
their return they made reports to the effect
that it was not a desirable enterprise for Ger
man capitalists to embark in. They ex-
pressed their belief that the project was some
what in advance of the real demands of civili-
cation in the region through which the road is
to pass, and that in consequence it would have
to linger through long period Of childhood,
in which it would be wholly unproductive to
those who might take part in its construction.
1t was in consequence of this report that for
eign capitalists refused to take the bonds,
throwing them back upon Jay Cooke Co.,
causing their failure, and precpitating the
crash among railroad stocks and other securl-
ties which followed.
| A statement is now published by Mr. A. B.
Nettleton, trustees agent of the Northern Pa
cifc Railroad, dated at Philadelphia on the
9Th inst, which gives an account OF the pres
ent condition of the road. The company have
built and equipped 428 1.2 miles, embracing
the Minnesota and Dakota divisions of their
road, extending to Bismarck on the Missouri
river, and the Pacific Division, nearly compile
ted, is l05 l-2 miles long. Adding "a miles
of main line between Thompson junction and
Duluth, jointly owned and used by the N. p.
& L. S. & M. railroad companies, and 13l
miles of the latter road, leased by the former,
the whole length of road operated by the Nor
thern Pacific is TAO miles. 1t is expected that
the Pacific division will be completed by
November 10. Freight and passenger trains
are running on all the divisions. The Min
nesota and 65 miles of the Pacific division
have been accepted by the government, and
the Dakota division is ready for examination.
The policy of the company has been to make
each completed section as nearly as possible
independent of through connections, and to
constitute them with allied lines a renumera-
tive transportation system in themselves.
Thus the eastern division has railroad and
water connections at Duluth, st. Paul, Min
neapols, and the crossing of the Red River,
and at Bismarck, the present end of the track,
with steamers on the Missouri The Pacific
division connects with steamer line naviga-
ting the Columbia river, and three-fOrths of
whose shares are controlled by the road also
at Tacoma, its northern terminus, with the
boats of the North Pacific Steamship Com
pany. The traffic of this division indicates
that it will be more than self-sustaining at
the outset
The earnings of the several completed Sec
tons have equalled the expectations of the
company's officers, and have shown a fairly
rapid increase from the beginning. 1t is be-
lieved that the time required to develop the
business of the road now constructed to such
an extent that the net earnings will meet the
interest on its cost will not exceed the period
| required for the average of new roads. The
| rolling stock of the road consists of the fol
lowing Y locomotives engines, % passenger
cars, mail and baggage cars, emigrant, q
dump, and l,525 box and platform freight
cars.
The number of acres sold up to the present
| time, fifteen months after the date of the first
conveyance, is SO ,353-equivalent to "a square
miles. This is exclusive of several tracts ag-
gregating some POO. 900 acres selected by col
|
less definite stipulations of gradual purchase.
The average price per acre realized is $5.4S,
and the total proceeds are 1926, 653.96. OF
this amount SIP, $50 So has been received in
cash or bonds, and the remainder is due in
yearly payments from the purchasers, wi b q
lien on the land sold. At the average prices
above named, the company's lands already
earned would produce about $55 200, 900, or
nearly double the cost of the finished portion
of the road.
The title to lands is in no way dependent
upon the completion of the road across the
continent, nor is it at all affected by routine
delay in the issuing of government patents.
Six hundred and torty-nine thousand acres
have thus far been patented to the Company
and other patents are only delayed by the
government surveys and the clerical labor Of
preparation.
1t Is the trustees emphatic belief that every
department of the company's service is
managed with clean hands, with rigid econo-
my, and with good judgment. Every mile of
the road has been built under contracts let to
the lowest responsible bidder after public ad.
verusement and competitive bidding. The
Northern Pacific Railroad is not more ''pre-
mature" than were nine-t of all the west
ern roads when bnilt.
Mr.. Nettleton says 'sThere is no occa.
sion for holders of Northern Pacifcs' sacri6c-
ing their investment, and the most unwise
course possible would be to attempt to force
these bonds or any other railroad securities
on the market, during the present period OF
| depression and alarm. The intrinsic worth
and Ultimate security of Northern Pacific
bonds have not been impaired by the panic
All the property pledged for their redemption
still exists. The Railroad Company loses nc
money by the suspension Of its financial
agents; it has paid its interest promptly and
met its engagements with the public; no in
terest falls due for three months to come. and
this gives time for making new financial ar
rangements. Among the directors and stock
holders are many of the strongest capitalists
and most successful railroad managers in the
country, who have several million dollars of
their own means invested in the road. A
resolute effort will be made to overcome
whatever embarrassments may result from
the prevailing financial stringency, meet
every obligation to stockholders and others,
and carry forward the work of construction