Daily globe., 1879-10-05

Building More Road-The Connection
With Minneapolis and St. Paul-The
Lands
At the meeting of the directors of the
Northern Pacific, held in New York, Sep
tember oath, the president submitted the
following annual report:
THE REORGANIZATION.
The company is to be congratulated on the
success and final consummation of the plan
of reorganization. The suit to foreclose the
mortgage commenced on the 10th day of
April, 1878. The railroad, property and fran
chises of the company, including the fran
Chise to be corporation, were sold. under the
decree of the court, on the 18th of August
following, and were bought bya purchasing
committee appointed by the bondholders, and
who took title for the benefit of all consenting
TO and complying with the provisions of the
Plan In the same month of August call
was issued by the purchasing committee to all
the bondholders to surrender their bonds for
conversion into preferred stock. Within
three years about twenty-five millions of the
bonds were surrendered and converted. On
Guc IOLu VI DCCCmUC1, 1910, Iuc purchasing
committee, anxious to close their trust, and to
whose discretion the time was left,
published in one or more newspapers in
every State in which holders of Northern Pa
cifc bonds were known to reside, a notice that
the right to convert the bonds under the plan
of reorganization, would expire on the 30th of
June, 1879. Under the stimulus of this no.
tice, the conversion amounted in all, on the
l7th day of September, instant, to $50, ,207, 100,
and there are outstanding to-day of these bonds
only $729, 400. 1t is probable that most of
these will come in. Excusable delay on the
part of the few bondhoders who have hitherto
failed to come forward, will be taken into con-
sideration. But the trust of the purchasing
committee cannot be kept open indefinitely
for persons careless of their own interests.
THE FINANCIAL YEAR.
The financial year of the company has been
ixel to end June 30th. 1t is not easy in Sep
tember to bring detail accounts of the opera
tions of a road extending so many miles, and
partly on the Pacific coast to a later date
Besides, this conforms to the year for which
accounts a-e required of the company by the
United States railroad auditor, and the laws of
the State of Minnesota.
In last year s report to the stockholders the
report of General Manager Sargent ended with
June 3Oth, but the reports of the treasurer and
the land department brought down to
August 3lst Thus the reports of the treasurer
and the land department, this year. cover only
ten months-from September lst, 1878, to
June Both, lS79-and the two important
months in traffic, July and August, are not in
oluded.
BUs1NEss-EARNINGs AND EXPENSES.
The business of the road, in both local and
through traffic, is steadily increasing.
The acreage of wheat along the line this year
is estimated to be double that OF the past, and
the new breaking of land indicates that next
year 1t will be double that of the present.
That the Northern Pacific region is attracting
large immigration appears from the state
ment. under the head of Land Department., ~
Of the quantity of government lands taken ur
there by actual settlers.
The numerous settlements being made west
and south of the Missouri river, the transporta-
ton of supplies for the army posts and Indian
agencies in that region, and the traffic via the
lakes and to and from the country to the
north, furnish large and growing through
business. which must be vastly increased as
the constructed road will penetrate the Ter
-itory of Montana, reaching her fertile valleys
her rich grazing lands and her boundless but
yet only partially developed, mineral deposits
The earnings for the ten months ending
Jnne ~, 1879, do not show the full extent of
the increase Of the business of the road, as the
movement of the wheat crop does not begin
until near September. The gross earnings for
those ten months are 81, 167, ,26l.S2. The gross
earnings for the same months last year were
S914, ,23S.29; an increase of 1920, 02353 The
operating expenses were $711, ,463 81. leaving
act, over operating expenses, $455, 7SS. OF.
From this is to be deducted taxes insurance.
interest, general Office expenses, salaries legal
expenses, rents, stationery, printing and in
cidentale, $l07. .492Sl; leaving net over all for
ten months, 934S, ,305.20.
The operating expenses have been very large,
by reason of the great outlay necessary on re-
placement and repair of track, bridges, trestles
depot buildings and equipment, all of which
has been charged to that account; it being
provided in the plan of reorganization that ali
'eSpenses of repairing replacing the road
Its 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" should
come out of the earnings.
It is nearly six years since the work of con-
struction was suspended. The ties then in
the road bed were principally pine and tama-
rack, and the bridges and culverts were all
pine. This material has about reached the
limit of its duration, and renewals have OF
necessity been extensive. For instance So
QUO new cross-ties were placed in the Dakota
division last year. and 200, 900 have been pro.
cured this year. 1t is estimated that 100. OOC
more Will be required next year. and an equal
quantity the year following. About So O0O
oak ties were placed in the Minnesota division
the present year prior to July |. In the two
divisions thirty-fve trestle bridges-645 fee,
were; within the same time substantially
rebuilt with oak
Fully 1900 feet in length of pile brids es has
been rebuilt in the Duluth Harbor, and the
docks there have been extensively repaired.
In the Pacific division the renewal of BRIDGES
required large expenditure.
The water supply for engines found in
sufficient to meet the wants OF the increa sed
trains, and frost-proof wells are being con
structed at suitable points.
During the year four new locomotives wer
purchased and it may be stated that fou
more new locomotives and one hundred new
poX-cars have been purchased since the expi
ration of the year, July 30th last. OF thes,
eight new locomotives, six are now at work OF
the line. General Manager 81. E, Sargen
estimates. that to meet the demands of tn.
prospective increase of traffic arising from the
rapid settlement at all points along the line
the opening of one hundred miles of the Mis-
souri, division, and the necessary additional
transportation Of material for the extenson tc
the le!lowstone, a very considerable increas,
OF rolling stock Will be required; and b,
recommends the purchase of ten locomotives
at least two hundred box-cars, fifty stock cars
one hundred hat-cars, four passenger coaches
three baggage cars, and one sleeping car.
On account of the growing traffic betwee,
Bralnerd and Fargo, distance of 1881 miles
over winch portion OF the road passes not onl
the business to and from the lakes, but ais
that to and from st. Paul and Minneapolis. i
was deemed expedient to replace the iron wit
steel rails on the entire length of that section
For TINS purpose the company purchased II, 90
tons OF steel rails, viz: From the Clevelan
Rolling mills, 5000 tons at S44 per ton, an
from the Pennsylvania Steel company 500
tons at S45 per ton, delivered at Erie, at spec
fed times during the season. These rails wi
all be laid before winter. They were pu,
chased on time, and notes were issued for 500