The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1881-04-23

however, had elected one Josiah Perham pres.
ident of the company, and to pay him for do.
ing nothing, or tor lobbying in Washington,
or for some other purpose, 5000 shares were
issued to him, but upon which he never paid
the $40 per share required by the charter, or
one cent.
Jan. 10, 1867, however, said Perham and his
directors or somebody, entered into an agree
ment recitlng that the control of the charter
and the entire property, expectations and pos.
siblllties of the Northern Pacific Railroad
Company had passed into the hands of
Gregory Smith, of St Adams, Vt, and his 1O)
associates, who had divided the enterprise"
.up into 10 equal shares, valued at $500 each,
which sum each shareholder was to pay to
said Smith on demand, and each share was
to be entitled to one director in the new COM
pany thus organized The 100000 thus
raised were to be used tor lobbying in Wash
ington to secure favorable legislation for the
"enterprlse"- subsidies, &c, to wit.
. Nothing was done, however, under this or.
panization except to make an occasional as.
sessment on the IL shares and 10 agree to recog-
nize the 5000 shares of Perham stock as re-
deemablc at so cents Oh the dollar-until May
20, 1869, when Jay Cooke makes his first ap-
pearance upon the boards Ga his accession
1t was agreed to increase the number Of shares
from 10 to "a, Jay Cooke to control the other
10; and then it was agreed to appropriate the
the capital stock of the company 100000.
900, on which the charter required $40 per
share to be paid down and the balance is as
sessments) as follows $4,000 900 to be divid.
ed equally among the above "a shares (Mr.
Window had now become owner of one of
the jaw Cooke shares) to be issued as fully
paid up stock Though no, dollar was paid
On lD &, 24l 900 to the shareholders at once
and the balance from time to time as the road
was built at the rate Of $40,5 500 to each on the
completion of every successive % miles OF
the road, and $19,999, 600 to Jay Cooke at the
rate of S4O0 of stock for each $1,000 OF the
bonds of the corporation that he sold. The
same agreement stipulated that the first IL
share holders should have back tout OF money
to be borrowed by Cooke on bonds $25O,OOO
advanced BY them for lobbying purposes, and
that the Perham stock (6 900 shares should be
redeemed at so cts. on the dollar, the 10000
shares originally subscribed In Boston being
declared forfeited for non-payment OF assess
mentl
Well, Cooke goes on borrowing money by
the sale of bonds at 50 cents ON the dollar and
constructing the road until about $Sl ,OOO,OOc
of bonds had been sold and 800 miles (sbou'
onefourth) of the road were built. Meantime
the stock began to have quotable value IN
the market and the greedy holders Of the "a
shares were too eager to realize TO await the
slow process of building the road in section;
of 25 miles to receive their portions OF the
$4,000, 900 OF stock, and when 500 miles OF
road were built they had already received sSl,
100000
Then Gin the fall of 1873 Jay Cooke sudden
w collapsed, and with him, for the time, the
great Northern Pacific enterprise. 4 sort Of
life was kept an the concern by running irreg
ulsr trains on The 500 miles Of completed road
but no attempt was made to keep up the in