Bozeman avant courier. [volume] (Bozeman, Mont.) 1872-1882, 1875-01-01
NORTHERN PACIFIC RAILROAD
LEGISLATION.

S1ApuIC TcpOjt COOEllnS lew OF the points
of the argument of Hon. b. r. Wade be.
fore the House Pacific Railroad Commit
tee IN b. half of the Northern Pacific Rail
roal o. the basis of the bill introduced q
the last session and now ncnd;::x SScct:;;re
Congress. The terms of this bill. hav,na
never Uecn given TO the MOntana public
arc printed below:
First. That the company may issue, in
addition to bonds heretofore issued, its
per cent. 30 year 6 Did rsnds u the amount
of $50. .OOO per miie of its authorized line
Of road, the entire issue tn be delivered by
the company to the Secretary Of Treasury.
SccOnu. THAT as often as NE company Y
shall complete and equip a section ot q
Or more nj les Of new rUad, and the same
shall have been accepted as tirsi class by
G vermment Commissioners, the Secretary
of the Treasury shall deliver 10 the com.
pany $40, NV Of its authorized s per cent.
bonds tor each mile Of the section thus
completed; each bond delivered to the
company 10 bear a guarantee by the Uni
ted States Government of the payment of
the interest thereon. The remaining So
700 of authorized 5 per cent. bonds for
each mills equivalent TO ~ per cent. of
the entire amount to be issued to com
plete the road shall be retained in the
United States Treasury as q reserve inter.
est fund, to be used rs hereafter named.
Third. That as often as the company
shall complete q 20 mile section aud sppiy
for \ CO. OsrespOnding lnslaiIment of its
guaranteed bonds. il shall depOs,t with the
Secretary of the Treasury $5O, O,OOO of Its
Z $40 First Mortgage bonds for each mile
Of the section thus completed. These
73 10 First Mortgage bonds are to remain
in the Tinted Sa'cs Treasury, in trus., to
secure, first, the United States Govern
ment for it's guarantee of interest and
second, the holders Of the new per cent.
bonds. The pr ncipal Of which will not
bear the Government guarantee Thus the
Government receives first mortgage on all
the company's property and franchises in
return for its guarantee of interest.
Fourth. THAI, 10 provide and secure the
payment inio the United States Treasury
Of sum of money clual t. the guaranteed
interest, as II shall fan due: Isl, the COM
pany shall. within sixty days after the
approval of this Act, convey ana surren>
der to the United States Government its
entire land grant, earned and t. be earned,
aggregatlng about fifty million acres, to
be soid, subject to existing equities, under
the direction Of the secretary OF the In
terror. and t. actual settlers on agf.cuIIu
raj lands at the minimum price OF 80 so
per acre. the entire proceeds 1T sale, each
SIX months to be paid into the Treasury of
the United States fifteen days before the
maturity Of the next se,ni>anL ual install.
mcnt of guaranteed interest: 2l Every
SIX months The entire net earnings of the
n 1 for theprctiOus six months shall be
paid into the Treasury Of the United
States, accompanied by sworn statemen,
of the business of the road during The
same period; 81. If at any time the pro.
ceeds of sales Of land, together with the
net earnings of the road, and any other
sums paid over by the company, shall be
to meet the next payment OF
guaranteed interest," then the Secretary of
the Treasury shall cell sufficient Of the
per cent guaranteed bonds,
retained by him as security, (mentiOned in
secondly and apply the pro-
cecls to meet the deficiency.
Fifth That all surplus funds in the
United States Treasury arising from the
sale of land and the net earning Of the
road, after paying any instalment Of guar
anteed interest, shall be paid 10 the COM
psny, until the year 1858, at which time
and thereafter. 10 long as necessary. all If
such surplus shall be paid into sinking
fund until the entire issue of guarantee
bonds 10 paid off, principal and interest.
Sixth. That any holder OF the Outstand
ing Z 30 First Mortgage bonds Of the com
pany. issued prior to the passage of this
Act. may, by surreDdering them to the
Secretary OF the Treasury, exchange them
for the cOmpany's 5 per cent guaranteed
bonds. bearing interest from January /,
1878. on terms to be fixed in the Act. The
object IF this provision is To place in the
CDi,ed States Treasury all of the com
pany's First Mortgage Mnds, and thus
give to the Government alone first and
lem on all the cOmpsny's props
city and rights Of property, aud that
without working Any injury u the com
pany's present bond holders.
Seventh That Congress may fix and
determine fares, tolls and charges on the
Northern Pacific Railroad. provided that
such government control shall not Impair
nor defeat the security sought 10 be given
by this Act.
The provisions of the bill, ii will thus
be seen, are highly advantageous to the
Cover nmeut and the n4tlou, and whatever
of aid or cOunienance is asked by way Of
interest guarantee ON bonds is more than
for by the release II the land
grant and the protection secured tO the
in providing for the interest
account - it becOmcs due and payable.
I he purpose of the company is tU cDm.
plete the road from ito pre- sent terminus
on the Missouri river, westwardly 200
miles 10 the Yellowstone up the valley Of
that river 800 miles u Shields river, thence
through Bozemsn Pass, across The Gall
latin valley, through either Deer Lodge
)r Ten Mile Pass Of the main range, vic
CIark's Fork and Pen d. Oreilie Lake to
Walluls. on the navigsble waters OF the
Columbia, thence down that river 10 Port.
land, Oregon, uniting 1t Kslslnx with the
Psciic division Of the road, already built
Ind running. 1t ID also proposed. q the
charter provides, to buiit eastward from
Duluth through Wisconsin to tho bound.
lry of AIchigsn on the south shore of
lake Superior. The cOmplessG line will
Il,us extend from the Northwestern bound.
s.y of Michigan, something more than
J, 900 miles through our northern tier of
states aud T-rritOrie- Wisconsin, MIME
Iot., Dakota, Montana. Idaho, Oreg0n
snd Washington.
The certainty that the Northern Pacific
very sum after it's compile ton,
viii have Z profitable traffic, with suiflc>
.lent net earnings 10 meet the proposed |
Iht Interest liability, 70 emphssi1ed By |
he Central and Union Pacific r . Is eat b |
vear sirce their opening ~ through line.
10 1873 ne Un,Onv Pacific on l. .QH miles |
# r0sd easnsd more than $40. ON. .O0v end
md netted %, ~. .2l2 The Central r. |
Pacific IN the same year, on l.l5S miles,
arnel S13, ,93u. .06o in guild. and Melted |
q. Sci, ,66t aud It 10 TO 10 remembered |
hat nearly 20 PER cent Of the earhines of1