Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1881-05-13
Northern Pacific History.

The history of the Northern Paci.
fic Railroad Company, as given by
the New York World, is interesting.
1t appears that the charter was is.
sued July 2, 1864. 1t provided thai
as soon as 10000 shares were sub
scribed for and 10 per cent. paid in
the company could organize. De-
cember 6, 1864, n report was made
showing that 10000 shares had been
subscribed for, and thirteen direct
ors were elected. This apparent
compliance with the terms of the
charter gave the company an author
lied capital of 100000, 900, and &
land grant of so, ,OO0.0O0 acres. Ir
1865, 1866, 1868, 1869 and 1870 the
company received rights to mort
gage and extensions of time IL
which to begin work.
In 1867, J. Gregory Smith, W. B
Ogden, r. H. Burdell, D. N. Barn
ey, r. H. Barney, B. P. Cheney
w. G. Fargo, G.. w. Cass, j. o.
Thompson and Ed. Reilly made an
agreement between themselves
They started with the assertion that
the 10000 shares originally sub
scribed for had been forfeited by
nonpaymen. of assessments. j. G..
Smith and others had paid for pio-
curing the charter 100000 and
stock to the par value of S6OO,OoO
had been issued to Joseph Perham.
The twelve recognized the claim OF
Mr.. Smith and the stock of Mr.. Per-
ham as debts. This being all that
was owed they agreed to take up
with bonds Mr.. Perham's stock at
the rate of fifty cents on the dollar.
This reduced the Indebtedness to
100000. The twelve divided this
indebtedness into twelve parts, and
each assumed one-twelfth. They
thus obtained the charter end oil it
conferred, and acquired what is
called the proprietary interest in the
property. In short, they captured
it and could do what they pleased
with it.
In May, 1869, the twelve parts
were sub divided into eighteen parts.
'Of this number six were given to
Jay Cooke g. Co. The capital stock
of 800 900 900 was divided into two
parts, one of $50, ,00] 900 and one OF
s19, ,999 900.
OF the former, each of the eigh'
teen, or subsequently twenty-four
part owners received 50, ,241 900 In
stock at once. The remainder was
to be issued $40, 500 to each OF the
twenty-four shareholders as often as
twenty-five miles of the road were
completed.
Tie $40, $4,000 were to be deliv.
cred to Jay Cooke & Co. in such
amounts that Jay Cooke & Co.
should have 5000 of sock (after'
wards made $400,) for every l,OOl
of bonds sold by them.
An agreement was made that each
of the twelve parts might be assessed
S12,500 for expenses in obtaining
legislation; also that all expenses In
Cured by the twelve, eighteen OF
twenty-four shareholders should be
paid, with interest, in bonds at Se
cents on the dollar.
1t appears from all this that the
10 per cent. required by the charter
to be paid On the original subscrip-
tions was not paid; that the charter,
with all it implied, cost the twelve
$500 apiece; that the twelve, with
out any other payment, If, indeed,
this payment was not repaid in bonds,
issued to themselves and to Jay
Cooke & Co. sS0,001 900 of stock
and to Jay Cooke u Co. S19 ,999, ,OO0
additional stock as q bonus for the
sale of bonds.
A large part of the $50, 100000
was divided at once; the remainder
was to be divided at the rate OF $40,
500 to each of the twenty-four pro-
prietors as often as twenty-five miles
of the road were finished. This
would have made the last issue o!
stock coincident with the completion
of the road.
The company has completed one
third of the road, but has issued the
whole of the stock. Secretary Win
dom, the World says, was the first
to call on the Trust Company fol
his new stock. He sold it, but as
the new. stock was not good deliv
cry he had to buy old stock at &
higher price to make his delivery
good.
Now, if somebody would sketch
tho details of Mr.. Wizards " bline
pool' it would, perhaps, be appar
ent why both parties are reported
willing to compromise.
LAST year Chicago furnished tel
d;yoroa c,,ita to ayarv Seventy-n min,