New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-22

yenrs the OF Immigration mas nV"ou, i"rshs
concluded therefore, That tIore WIZ Oe consIui"
demand for the land through which ths me pass f
Tho business OF the Northern Paeihc ne WI, " td.
Their Increased by tbi rcSils Of tho sale OF Puoo
constantly brought rto The market ~ Goysrnno", 60,
by all concessions Of land for pnbnc purp a,oe q,
eminent mas a,IsaGy doubled the minimum piloS W
q 25 per for those alternate sectons OF pnDe
which ie ia tho dstiet OF the grant But the conai
tons OF TIC Homestead law. according 10 winch ever
settler after term Of five years and The paynent ~
emplon law, which the settler The right OF p1r
chase at nominal prizes give certain sdyanages apS
Government and 40 that tho railway lands eau oOb
fetch o higher price at n later date.
The foregoing crcums touces tend greatly 10 the hen
owing The pr gross OF tho Government settlements
on the alternate scctions that the intermediate rail
many on ts part can contribute 10 the advantages
merated above by stmu.aung emigration and generally
ment offers TO settlers Ths consideration serve g.
explain the fact that at present some railway land
actually fetcbes higher Prices than Government land
THE xeut TO which settlements are being Elected m
tie nted states may be seen in the at
the Wear 1870 Government disposed OF for settlement
nnder the Homestead about 100000 acres, and sod
2,lGO,C0O acres, for winch u reahbeu Soooo""
LAND sAIrs OF OTHER RAILWAYS
In ,ooard 70 otber railways favored with land oonces
sions IL NAV I've sufficient that the Union Pacific
though not fully opened Gil the 18TH May 6o mas "p
TO the present moment sold more than 2so0 acres "a
not inconsderable portion Of s entire grant 81 3ooo
scre at average price OF $40 per acre T. az h
cinc line has within three years, disposed Oh W.
100000 which comprised lis grant me pl,1e
was only 6 r 9st tive Of tSe sales OF the i
acres successvey granted to the ST. Paul qua PcIhe
OF sos year AZ an average Of &c a Although the M
Central, which the lint line In the maFset VIII
It's land has still zoo left OF the 25seo OF
,ts original grant this may be accounted by the de
termination OF the directors to hold back for an
prices In fact, these lands produce more than VIZ
per acre. and show steady Increase OF value datmE
it's not 10 be expected that the sale land the
Northern Pacific line can at first De oth9rNlse mar
81 80 GS Sn OF
capital will have been realized to redeem all tue none
obligations OF the ino, or &C least more than 10
the stil outstanding bonds
II take into account 1st the increase OF building
everywhere good and In some places even excellent COZ
dton OF the land 3D. the increasing value OF tue prop
erty granted 10 the Company <h, The various snds OF
aid at the disposal OF the ,Conpany we must aclnow
edge that the whole we have the basis OF
tive satisfactory enterprise Payment OF interest
on the bonds issued is 70 be made out OF the building
fund during the term 81 building estimated at four or
tye years. This with the yield OF the trale from those
portions Of tine lne 10 be successfully opened must IN
faibly m the long run prove source OF considerable
income. After the completion of the line, however, IL
WILL OF course be no longer possible 10 pay Interest Out
Of the building fund During the first year. IN our oph-
ion the traffic on the line win be sufficient to pay
the interest and certain deficit will arise which eau
not the be covered by the current receipts
This anticipated deficit has been provided the
mortgage deed on the understanding that on tho eA
haustion OF company 'sifunds the required
be taken from the proceeds OF The land. But certain
pleton of the line and as the payments lor land are
generally distributed over nnmber or years ana, ac
cOrding 10 the deed, be made Ia bonds Or shares
Is impossible suppose that with The sum OF T3toO
he raised annually in gold even the prUcees OF the
FINANCIAL DRFICCITY
In the event Of the interest not being paid three
months after It's becoming DUE the deed oOut5ins pro
vision for forced safe OF proportonate part Of the
Company's lands But In this provision fall 10
find sufficient guarantee. For on tho one hand u
tracts while the development OF the country was IN
complete, and. on the other experience shows thai
beside this, the remedy provided VIII not be available
until three months after the failure " pay the he'esl
in nj bOndhOlders
suffered certain loss. In spite OF our favorable opn
TO buy bonds other DC provided for
ing payment OF tie interest during the years M
Ga sSae sonsderacn Of ali tie facts Of the case as
stated in the mortgage deed we therefore venture I"
1t is desirable that ia the OF the present imam
cia operations sum OF $4,000 should We so asds,
either in bonds or In some other sufficient security ana
should be deposited IN hrstcass European bank there
to be left until the Company has paid the interest for
three years solely from the surplus OF iis traffic From
fund.- with the interest aecrung Ia the time
naSl n nna Gs T he subtraction u the doe
tined the construction OF the line must aoo'atey
be covered by the Shareholders THIS can be done most
satisfactorily by increase In the payment The
Original shares tile sNn subscribed hitherto having
! been comparatively small The desired end could hs"
be obtained by second mortgage or 10y any other SUIT
aole arrangement OF the Ike kind but IN any oas" u
IefS intact tact ~
The sixth article OF the deed provides that II a, any
time the Of the Company should nos suli,e for
the payment OF the interest On the bonus SOC losses
| should be made by sale OF land. To THIS there
eau objection but tail 20 md any clear nstrnf
Ons prohibiting ABSTRACTION iiorn the proceeds Of
the land during the process Of construction, asmucb
al this time the payments OF interest must ne exclusively
derived from the building fund. Furthermore, n Is
necessary III the interest OF the bondodefs that The
money derived from the sale OF land after the compile
OF the line should NOT only be placed ont at inter
est should also he repaid 10 capital before any die
trDution OF dividends he allowed 10 take place Fc0n
he ABOVE IL will naturally follow that the Ltken
from the proceeds Of the land may supplied accord.
ing TO the discretion Of the Company by the 81
second mortgage bonds-an arrangement which might
possibly result in the bOndhOlders receiving securities
OF that kind instead Of interest
or norfaeu
OF the still unso. land is 10 be yearly free from III.
mortgage in proportion 10 the redemption OF the oblga
tons aud be counted free property Of tho share
holders. We certainly acknowledge the preiicdbiiy
OF this process, and think the more UNNECESSARY u
mortgage until the redemption OF ali the bonds, AZ
would quite needless burden on the share
ence in ali other lines the unsod land which forms
part Of security for the bonds rises considerably m
the course OF successive years.
We think 1t very lmpractcable however, to free any
part OF the land from mortgage as long as In. interest
consider IL not TO let the Liberation OF the
aud from mortgage pegin as stated IN inc lortt"ss
the the bonds be paid out OF the proceeds
of the raihc without touching the reserved nnd 80
that the proceeds OF the sale OF all the land up 10 that
tine may be for the benefit OF the bOndhOdors.
In addition to these measures. which think Deces
sary Tor securing the interest on tue bonds may e
allowed TO point TO some other facts the consideration
~ which appears 70 us 20 be no less desiFabct We
recommend the presentation " the interests Of tnc
bondhOdeIs in the directory. TINS be secured by
OF the Northern Pacifc line, and this two mem
of complete directory will have 10 retire.
punctuil adherence to the ternls OF the mortgage
deed Of particular Importance 10 all future bondhOd
aud TO secure adequate Representations OF this
body two gentlemen have been appointed In America ~
trustees such represe Is OF the Greatest import
anee as Tor IA inc event OF an i.eropten IN
deed only authorized, bat not compelled, 10 the
Company by the forced lo OF land 10y other
We therefore consider it ABSOLUTELY necessary that
European trustee should be nominated o represent
Interests OF the Dondholders.
Inc rules iad down 10 he MORTGAGE deed for the sue
cessiyc liberation or the land fron mortgage not