The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1876-02-19
NORTHERN PACIFIC RAILROAD.

NORTHERN PACIFIC RAILROAD.
JOS Dreamer & Co., brokers and dealers IN
bonds and stocks, PAL Dock ST., Philadelphia
send US q circular addressed to the preferred
stockholders of the Northern Pacific Rail
road, setting firth the financial condition and
prospects of that enterprise AS we are mel
Their preferred stockhol ers or otherwise IN
said concern, or likely to become such, the
only motive in sending US such circular mus
have been to give US some items Tor para
graph in reference 10 said road. The break
ing out of the Black Hills fever, which prom
ises to rage with considerable violence this
spring, and the most convenient and practi
cable route to the Hills being by way OF the
Northern Pacific Rrilroad, give II unusual
importance at this time, 50 that reliable in
information in regard to its condition and
capabilities cannot fail just now to be accep
table. Our readers have already been advis
ed that the railroad in question is completed
from Duluth, at the head of Lake Superior
70 Bismarck, on the Missouri river, the latter
point being within 1911 miles of the BLACK
Hills, and by at least 100 miles nearer than
the Hills can be reached by any other rail-
road The only other portion of the road
completed is from the deep waters of the Col
umbla river to Tacoma, in Washington terri
tory, distance of IT'S es,-making SOD
miles of the road now built and in operation
To accomplish this much the circular before
us states that the company raised So 5000 q
by selling its bonds, or by loans, in addition
to which there have been about 500 W',OO'
of stock issued, and the company are having
handsome income from sales OF its lands,
of which over 1000 0O9 acres have already
been conveyed to it absolutely by the gov
eminent, and which are selling rapidly al
IS an acre" Then let us figure: Expended
on the road thus far, borrowed money, $50,
100000; paid up stock, $1,000 ,0O9; sales OF
lands, 100000; total $50,500,oOO 1t would
be an eXtravagant estimate OF the cost OF the
road to place it at O,0OD per mile, yet al
that figure the cost of $50 miles would be but
$222 % 900, and to the bondholders and stock
holders at least it might be pertinent inQui
~, what did Jay Cooke & Co. do with the
other $2S,3U0,O0O?
Meantime the road earned last year $GlS,
$50, or $152l40 above operating expenses
which sum was all 1t had TO apply towards
the payment of the interest on its bonded
debt, amounting to $2,4O0,O00 ayear, and none
of which has been paid since 1878.
What the managers of the road are now en-.
gagged in, is an effort to reduce its $30,0O0,0Ou
of Indebtedness by C nvertlng the bonds into
preferred stock at the rate of 81 ,4OJ of stock
for every $1,000 of bonds, the $500 over face
of bonds being intended to cover unpaid IN
terest up to July 1878 This preferred stock
is to be entitled TO per cent. dividends be
fore the common stock will be permitted to
participate in any dividends. AS the com
mon stockholders" whose total payment thus
far cannot have exceeded SEC, 0OU,O00 df they
ever paid that amounD must have made away
with some $2s,O0O,0 of the actual means OF
the road in some way not to be accounted
for by work done upon it, they can very well
afford TO give the preferred stockholders
this advantage.