Daily globe., 1879-10-05
the cost of building over the mountains, a
well a. down the river, can be made.
CONNECTION WITH ST. PAUL AND MINNEAPOLIS
AND MANITOBA BUSINESS.

o1nce the last annual meeting. arrangements
have been perfected securing for the Northern
Pacific railroad satisfactory and permanent
connection with the cities of st. Paul and
Minneapolis. ....,r. :
contract has been entered into with the St.
raul, Minneapolis & Manitoba company, own
Ing the lire of railroad between St. Paul and
Sauk Rapids, distance of seventy-six miles
connecting our Brainerd branch with the cities
OF st. Cloud, Minneapolis and St. PauLAunder
which there is granted to the Northern Pacific
railroad company the perpetual use
IN common, of this line of railroad, together
with the use of not less than ten acres Of land
in St. Paul for terminal purposes. The con-
slderat1on for this grant is an annual rental of
S4o.5O0, considerably less than the interest
upon the cost of q new road between these
points which had been projected and would
have been built and leased to this company. if
no other way had been devised to secure an
ern Pacific line. The trains of this company
now start from and run to st. Paul as we'll as
Duluth making close connections with the
Leading railroad lines to the south and east
during the entire year, and with the numerous
neet OF steamers and sailing vessels on the
great lakes during the season of navigation
This contract also secures to the Northern
Pacific road, on equitable terms, the trans
portation of the business of Manitoba, and of
the northerly valley of the Red river, passing
via the st. Paul, Minneapolis & Manitoba rail.
way to and from the lakes.
cAssELToN BRANCH.
The rapid settlement and cultivation of lands
IN the Red River valley, within the limits of
the Northern Pacific land grant, present such
necessity for the construction of q lateral
branch railroad, that your directors have
deemed it expedient for this company to oc-
cupy the ground before other and rival inter-
ests (who have already commenced surveys for
that purpose, seeking to divert the products
tlon), should gain possession. We have &C.
cordingly caused branch road to be located
northerly from Casseltcn, twenty miles west
OF the Red River, aud the grading and ties for
thirty miles to be put under contract for COM
pletion in time to move the crop of next sea-
son. 1t is intended to lay the track
with iron rails, selected from those
now being replaced by steel between Brainerd
and Fargo. The surface of the country travers
ed by this line being almost level, the amount
of grading and bridging is extremely light, and
putting the rails in at their market value, the
estimated cost of this branch ready for opera
tlon is only about five thousand dollars per
mile
1t is considered that this branch can be con-
structed, equipped and operated by the COM
pany under its charter, as spur of the main
line running into the granted lands expedient
and advantageous for the interests of the COM
pany, necessary to furnish transportation for
the products of the lands, and as part of the
Northern Pacific railroad. But by an act of
the legislature of Dakota, passed at the last
session, the company is authorized, under its
present organization, to build such branch
upon the adoption by the directors of a resolu-
tlon designating the proposed route, and filing
a certified copy of such resolution, under the
seal OF the company, in the Office of the secre-
IN 4rv nf fho Tow n.
organized under the general laws of the Ter
rltory to construct the road, when it can be
leased to this company, if desirable. It will
be for the stockholders now to signify which
OF these methods shall be adopted.
CAPITAL STOCK.
The capital stock of the nompany is fixed by
the plan of reorganization, as it is by the
charter, at $100, 100000, divided into one mil
lion shares, of $10O each.
Under the plan of reorganization it is SUBJ
divided into preferred stock, $4,000 shares
(849, ,0OO,000).
The preferred stock is receivable at par for
the company's lands east of the Missouri river,
IN the State of Minnesota and in the Territory
of Dakota. Such conversion is the extinguish-
ment of the stock.
There have been 80 received and extinguished
to date little over 72, 900 shares leaving OF
preferred stock now issued and to be issued,
nearly 43S, 900 shares. Of this the company
owns, as part Of its assets. $4,000 shares,
whereof 10000 shares have been appropriated
for the construction of the Missouri division,
and $4,000 shares for the construction of the
Pend d 'Oreille division, leaving about 46, 600
shares of the preferred stock in the treasury
as an asset to be used for the best interest and
advantage of the company.
Of the 100000 shares of the common stock,
hor ov1fSf 101 10 IN G,l,o
and which are nearly all issued. The remain
ing 19O. 474 shares of the common stock are to
be issued, according to the plan of reorganiza-
ton, to the numerous owners of the old pro-
prietary interests, as the road progresses.
The preferred stock is entitled to dividends,
non accumulative, not exceeding eight per
cent. per annum, as the net earnings of each
year may suffice to pay, and before any divi-
dends shall be paid on the common stock.
When and during the time the net earnings
shall be sufficient to pay eight per cent. divi-
dends on both the preferred and common stock
issued, the surplus is to be divided on both
alike, according to the number of shares issued
to each.
The net earnings are defined by the plan of
reorganization to be ''such earnings of the
said railroad as shall remain after paying all
expenses of operating the said railroad and
carrying on it's business: including all taxes
and assessments and payments on incum-
ing fund on the first mortgage bonds, the ex
peases of repairing or replacing the said rail-
road, It's appurtenances, equipments or other
property, SO that the same shall be in high
condition, and of providing such additional
equipment as the said company shall deem
necessary for the business of said railroad.
EXPRESS BUSINESS, SLEEPING CARS, ETC.
In July last your directors resolved that from
and after the first day of January, 1880, the
company shall itself do the express business on
it's lines, and that all ''sleeping' and so-called
''parlor cars" regularly run on the lines of
road operated by the company, shall be owned,
controlled and managed by it; and that no
special or privileged freight line or lines shall
be permitted to be maintained or operated on
any line OF railroad controlled by this COM
pany.
The directors have also had under considera-
tion the question of elevators on or along the
line of the road, and how the great and con-
stantly Increasing crops of grain to be trans
ported by the company, are to be handled for
the best interests of the farmer and of the
road. There is a necessity. becoming more and
more Imperative every year, for greater faciIi-
ties for handling wheat to be transported to
market, and these must be provided before the
crop of 1880 is harvested.
CONGRESSIONAL LEGISLATION AND RIGHTS rSnrR
THE CHARTER.
For five successive years your directors have
applied to Congress, at each Of its sessions. to
extend the time to complete and construct the
road, under the company's charter. Their sue
cess was only partial at any session, by reason
OF the press of business. In the last session of
the forty-ffth Congress, on March ID, 1879
motion was made in the House to suspend the
rules, and take from the Speakers table for
amendment and passage the extension bill
which had passed the Senate. The ses-
sion was so near its end, the bill could not
be reached in the ordinary course of business.
The motion for suspension of the rules, re-
quiring two-thirds vote, was lost, though 133
voted in its favor to 104 against.