National Republican. (Washington City (D.C.)) 1872-1888, 1875-03-24
The Northern PACIFIC Railroad

IFIom the PhiladClL hla Inquirer
The last annual report Of the Union Paeih;
Railroad Company. dated March 10, 1875, aud
Just given to the public, throws a food Of light
the subject OF transcontinental railroads. That
report, signed by the president and secretary OF
the company, states that the gross earnings oil
the Union Pacific road LOS miles, from Omaha
to Ogden) the past year were 90, jjg.SSO and the
net earnings, $780,, 565. This amount Of net
earnings, the report adds, is equal TO seven per
cent on the entire amount Of bonds and stock Of
the company, an aggregate Of $Sj,OOO,OOO. Here
is line Of road still in its infancy, starting the
extreme " estern verge OF settlements, and built
a Thousand miles westward through a region al
most without an inhabitant, and for eight hun
Gred miles Of the distance utterly incapable OF
settlement; constructed with Wasteful prOdigallty
of means at a time when war prices were paid for
all labor and material, and still burdened with a
fictitious capital nearly double the amount Of
actual money put into the Work-and yet, in a
scores OF old Eastern roads have all they can do
to keep out oil bankruptcy, this wild cat line
through the Western plains has earned seven
per cent. net dividend on a nominal capital Of
$4,000 per mile. The history Of railroad trans
pOrtaiiGn in the United States presents no
parallel.
This success is really flying in the face Of all
conservative logic and prOphesy. The road "Was
not needed" 1t was protected before its tIme:"
ii was built through Wilderness;'I il went ain
advance OF settlement it was "A hundred years
too sOoI;' il began nowhere and ended no.
trains showed up four months every winter. And
Yet it stands to-day an assured success, and with
Jew, ii any exceptions, the most profitable and
Ircmislng railroad property in the United States.
This in spite Of the grossest Encouragement and
worse in its early history.
Last Thursday the bOndhOlders Of the North
ern Pacific railroad met in New York to consider
the situation and decide upon some plan Of action
for the future Of that road. This meeting was
called some weeks ago in the expectation that
Congress would, before adjournfng, pass some
rLasonat!e measure for the relief Of the company
sad the completion Of the work Such not being
the case, the meeting listened to reports of the
condition Of the property, and closed by appoint
irg committee Of seven bondholderstO examine
the affairs OF the company, confer with the d.
rectOrs, and report to another meeting Of the
general body OF bOndholders such plan or action
as shall seem best calculated 10 make available
the capital already invested in the road by
further prosecuting the work OF construction
Gen. George W. Cas-, president Of the com.
parry, in his statement TO the meeting, brought
out into prominence some facts which deserve at
teniion. Using the report Of the Union Pacific
railroad as a standard Of comparison, Gen. Cas-
stated upon his personal knowledge Of both lines
referred 10 and on his lifelong experience as a
railroad builder and manager, that nOtHithstand-
ing the brilliant success OF The Union Pacific road
the Northern Pacific will be a still better aud
more profitable property when finished. Some OF
bis reasons for thinking thus are that the North
eTn route has lower grades, straighter line, In
cCmparably better lands, more mines of the pre-
cOus metals, more and better coal, far more good
timber, better climate, less snOw, better agri-
cultural and pastoral soil, more water and more
! building stone. He called attention to the fact
| that four hundred continuous miles Of the Union
ard Central Pacific road are higher than the
htg peak On the Northern Pacific. The Union
Pacihc Company obtained a total land grant Of
about twelve million acres for their entire line:
the Northern Pacific receives about eleven mil
| lion acres for the portion Of road already built.
The Union Pacific Company hiss sold in ten years
| less than eleven hundred thousand acres at an
average price Of - SO per acre; the Northern Pa
| cifc Company has SOLD, in little more than two
years. $4,000 acres at average price Of Oper
acre. The Union Pacific directors estimate their
remaining 100000 acres as worth $4,000 600; the
1880. COO acres Of the Northern Pacific C9mpany
| should then be worth $6O.OOO,OOO
II 1t be said that the Union Pacific road Is
profitable becauSe Il has the California and China
trace the answer is that seventy per cent Of its
earnings are from local traffic, and that without
a pUul q Of through business It would pay a 10.
eral return on Its reasonable cost. The Northern
Pacific road completed. would not thrive by
taking away the business OF the present road. II
has an abundant field OF It's own, and would
speedily build up and draw TO Itself local trade
much exceeding that now enjoyed by the Union
Pacific.
The boz dholders Of the Northern Pasihc Com.
pRny as shown by their sensible action ut the
meeting just held, understand perfectly welt
that their means are invested In an enterprise
provided IL can be pushed forward 10 q point
one Of the speakers Of the meeting eKpressel u,
"a block OF unfinished stores on Broadway, for
which tenants are waiting. has very little market
value until the root be put on the building and
the stores 10 thus rendered available for the