New-York tribune., 1882-02-20
THE NORTHERN PACIFIC LAND GRANT.
Ed,tor Of The TrtbVne.

| To The Ed,tor Of The tribune.
SIR: In addition to the important facts con-
cernug the land grant of the Northern Pacific Railroad
Company recently presented in letter printed in THE
TRIBUNE permit that the mortgages issaed by
the company upon s lands create vested rights which
cannot be set aside by whim OF Congress. In pursu
ance OF specc authority conferred ny I'm 1870
the COMPANY, under the old jay Cooke management L.
sued $50 GOO OF bonds secured by mortgage upon
its andgrant Ia consequence OF the failure OF the com
pany and the foreclosure OF the road these bonds were
converted into preferred stock. The same night Of
placine lien upon the land grant again exercised
after of the first Issue of bonds by Great
ing what are known he Divisional mortgages which
apply TO lands along the Missouri and Pend Oriee
divisions OF the road and also in creating the General
First Mortgage under which $2oOo00o0 of bonds were
issued through a syndicate Of New-YOrk bankers cor
posed of the firms Drexel, Morgan Co, Winsow,
Lanier & Co. and A. Belmont & Co., and through the
London house OF J. S. Morgan & Co, and sold IN this
country and in Europe.
The bonds of the Northern Pacific are held by thou
sands people i'll the United states aud abroad and the
preferred stock is distributed among 5000 holders
soatered throughout the country. In what light would
the Government appear if il should take action con-
trary to the pgicd faith upon which these nVcsimcn Is
ore baedl Every purchase OF Northern Pacific stock
bonds been made upon the pledge OF the Government
plainly forth in the law creating the company, and
emphasized by the repeated action of the Executive De
partmont and the President himself that the land grant
ia not forfeited by of the failure Of the company
10 complete its entire within the time specified IN
the statutes relating to it.
II may he mentioned an historical fact that the
Northern Pacnc charter and land grant conceded
as nt assure OF Justice 10 the northern tier oi states IN
the Union When the project for Paciic railroad was
before in lS62 there great strife as 10 lis
locations the original location from Kansas City
westward and tie Northern Pacific line was endowed
with donation of land lbu money subsdlD in order
to satisfy demands Of scntauNcs o thc more
northern States. Eventually the Union Paclhc Road
made its main terminus at Omaha and Council Bluiis,
carving itself miles north Of It's original starting
point What was intended he the main eastern sec
lion of the line constructed by separate corpora
tion called the Union Pacific Eastern Division the name
! of which Hns subsequently, changed TO the Kansas
Pacific The change OF The main eastern terminus Of the
| and was consequence Of the superior
| facilities for railway construction IN the
| Platte valley OF Nebraska, of which Congress
| knew nothing at the time, when tie two roads
Nhe Union Pacific end the Northern Pacific were first
chartered The why the terms Of the tand grant :
of the tWO roads diflcTcnt-the Union Pacific :
grant being forfeited in OF failure 10 ba1ld within the
specified time, aud thc Northern Pacific nUt-Was tis
The Union Pacific had subsidy in money IN addition 10
bnild its road The Northern Pacific having money
subsidy, the representatives, OF the northern tier OF
States Insisted upon having their road built sOIn now,
aud the only available way TO insure lts completion
seemed TO be insert provision IN the act thar Al case
OF Noncompliance by the company with the terms ~
the act LANDS should st he applied 10 the building
of the road How they should he applied diScre-
onary with Congress- but they c0uld not Do diverted
from that end or applied to any other use.
| EsIN4 q -