, 1881-04-30
uor.h.r. Pacific inside History.

The history Of the Northern Psnihe
Railroad Company, az given BY the New
York Wosid, is interesting. Ii appears
that the charter was issued July 2, 1864
Il provided that as sooa as recess shares
were subscribed fer ard ten per cent.
raid i,, the company could organize
December g, 1864, a report was made
showing that 10000 shares had been sub
scribed for, and thirteen directors we're
elected This apparent complains VITA
the terms of the charter save the com
pany an authorized capital of slOo,oo,-
eoe, and land grant of Il, ,0OO, 600 acres
In 1865, 1866, 1868, 1869 and 1870 'he
company received rights to mortgage and
extension of time in which TO begin work.
In 1867 j. Gregory Smith, W. b. os-
den. r. H. Burdell, D. n Barney, K
Fl. Barney, B. P Cheney, W. F. Fargo,
G. W. Cass, ]. E. Thompson and Edward
Reilly made an agreement between them
selves. They started with the assertion
that the 10000 shares originally sub
scribed for had been forfeited by non
payment of assessments j. Gregory
Smith and others had paid tor procuring
the charter sl02 900 and stock to the par
value of 5000 had been issued to
Joseph Perham.
The twelve recognized the claim OF
Mr.. Smith and the stock Of Mr. Perham
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 ndebt-
edness to sl02 900. The twelve divided
this Indebtedness into twelve parts, and
each assumed one-twelfth. They thus
obtained the charter and all it conferred,
and acquired what is called the proprie-
tary 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 d
Co. The capital stock OF SlOo, ,OOO, O,OOo
was divided into two parts, one OF SSO,-
OO1 900 and one CT sl9, ,999 600
OF the former, each of the eighteen, or
subsequently "a part owners received
s., ,24l 900 in stock at once. The re-
mainder was to be issued $40, 600 to each
one of the "a shareholders as often as 70
miles of the road were completed.
The S19,999, 900 were to be delivered
TO jaw Cooke & Co. in such amounts that
Jaw Cooke & Co. should have S2OO OF
stock afterwards made S4OO) for every
81 900 of bonds sold by them.
An agreement was made thet each OF
the twelve parts might be assessed sl2,-
500 for expenses in obtaining Legislation
also, that all expense incurred by the
twelve, eighteen or twenty-four share
holders should be paid, with interest, IN
bonds at IS cents on the dollar.
1t appears from all this that the 10 per
cent. required by the charter to be paid
on the original subscriptions was not
paid that the charter, with all it i'm
piled, cost the twelve 800 apiece; that
the twelve, without any ether payment,
if, indeed, this payment was not repaid IN
bonds, issued to themselves and to Jay
Cooke & Co. $50, ,O0I 900 of stock and to
Jay Cooke & Co 80, ,999, 900 additional
stock as bonus for the sale of bonds.
4 large part of the $40, ,OOl 900 was
divided at once the remainder was 20 be
divided at the rate of $40, 800 to each of
the "a proprietors as often as % miles of
the road was finished. This would have
made the last issue Of 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 Window, the World
saws, was the first to call on the Trust
Company for his new stock. He sold it,
but as the new stock was not good de-
livery, he had to buy old stock at his her
price to make his delivery good.
Now, if somebody would sketch the de-
tails of Mr.. Wizards "hlind pool it
would, perhaps, be apparent why both
parties are reported willing to COM
promise