Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1882-06-23
OREGON AND 1RAxsCss1lxENrAL.

The following circular to the stock
holders has been issued by President
Willard:
"One of the principal objects of tho
organization Of this company was to
construct, in its own interest az large
holder of the stocks of the Northern Pa
cifio Railroad Company. such branches
to the main line Of that company as
would he found necessary or requisite
in order to increase tho value of its land
grant, to procure additional traffic by
the development of the territory tribut-
ary to it. and to protect it from the ell
or0aohments Of rival interests. Propo-
sitiOns to at end were exchanged as
early as last summer between the two
corporations. and in duo course of time
an agreement was reached on the fol-
lowing general basis:
l. That the Oregon 4 Transcontin-
entA Company should promote and
bring about the actual construction, un-
der the ownership of local companies to
be specially organized for the purpose,
of such branch lines, and such only, az
would be recommended, surveyed and
located by the engineering department
of the Northern Pacific Railroad Com
pany from time to time.
2. That the Northern Pacific Railroad
Company should undertake the actual
operation of these branch lines under
traffic contracts, by the terms of which
minimum net annual income Of 81 400
per mile of operated road should accrue
to the branch companies, being equal to
six per cant. per annum ON $2O,OOO per
mile Of bonded Indebtedness and
sinking fund charge of per cent; the
Northern Pacific, however, not to be-
como liable for such net income for two
years after the completion and accept
ance of each line, under proper inspec-
ton and recommendation of its engi-
neering department.
3. That the Oregon 4 Trancontinental
Company shall provide the money re-
quired for the construction Of the branch
lines, including interest ON the bonds,
until the Same shall be provided for un-
dor the traffic contracts as above men
toned.
4. That the capital stock Of each
branch company constructed by the
Oregon Il TranscOntinental Company
should be deposited in trust, so that the
Northern Pacific would exercise all the
rights of Ownership during the contin-
uance Of the trust subject to compliance
with the payment Of the net income be-
fore mentioned, and would. become the
absolute owner Of it upon tho extinction
of the funded Indebtedness of each
company by tho operation Of the sink
ing fund.
Under the foregoing programe, tho
Oregon 4 Transc0atinental Company
hes nearly completed 200 miles Of branch
lines. and expects to complete. in the
course of tho present year, q total of
about 400 miles, TO be owned respective
ly by the following companies: The
Little Falls 4 Dakota Railroad Com
pany, of Minnesota; Fargo d South
western Railroad, of Dakota; jamestown
i Northern Railroad Company. OF Da-
kota; Columbia and PAloose Railroad
Company, Of Washington Territory.
Negotiations are pending for bringing
in the Northern Pacific, Fergus 4 Black
Hills branch, under tho same arrange
ment, In which case 100 miles viii b
added to the foregoing mileage.
In order to provide the means fol
mileage already built and to b built q
described, the Oregon 4 Tranoontinen-
tai Company has created . trust With
the FarmsrS Loan d1rrust Company ot
Now York, for the purpose OF PLACING
with that company Ill the bonds rooeiv
cd in payment for the construction 0l
branch lines not exceeding $4,000 POI
mile-Of finished line, and Of issuins
theroupon an equal amount of it, owE
40 year s per cent. Arst-moRt9age, trus
bonds, payable in gold coin, With eemi
annual interest, commencing Nov.
1882, and rsdeemable ct mot exceeding
los and interest, by purchase or draw
ings under the provisions Of thsi1 sink
ing fund. These bonds will thus repre
sent q triple security direct obligation
Of the Oregon i TIansoontinental Com
pany, which has no other indebtedneGl
q first mortgage on completed read 10
exceeding $4,000 per mile, and guar
antee of income sufficient 70 pay intsFes
and sinking fund changes On theo
Londs BY the Northarn Pacific, maxim,
them . hrs&-claas security in al rsspeeel
These bonds Are offered 10 yua at 50 an
accrued interest. Pay 70 b made d
| i've equal installments ol 30 Per cent
each, a follows: July 1, 1855, 20 p
osut.; Sept. !, 1852, 20 per cent; Nov.
1852, 20 pe1 cent; Jan. l. 1888, . p
osnt.; March ], 1883, 80 Pr cant. Hah
scribers 70 have the privilege of prepay
ment ON any installment data, VT
allowance Of interest at 6 per oent. Ar
plication may b made for any amoun
desired. AllotmsuAs viii b made b
special circular, and - neasjy popoa
tiooate . seook inteSost ~ po9oib1o. q
eordinR to the holding oe rerocd Jun
=, l7HZ. 6uhsoripGions viii b Sooeivo
!. until July I. and dAoald b addfsassd I
) Henry Willard, President"