The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1883-09-09
. ESTABLISHED isss
I PRICK FIVE LENTa

lng the construction OF the road till jay
Cooke came to the aid OF the enterprise with
his great reputation as successful tlnan-
cier. He obtained legislation in Washing
ton, authorizing the issue OF bonds and
the main line Of the road, so that
u should run down the Columbia river IN
Portland, aad, hence north to Puget Sound.
instead OF across the tremendous barrier Of
the Cascade Mountains. Cooke first pro-
posed the Noythern Pacific loan In Europe.
but his plans TO this end were defeated
by the breaking out OF the Franco-German
war. 81
He then put the bonds upon the Amerk
can market, using the same means to popu-
lariEe them which he had successfully EN-.
ployed IN selling the great war loans OF the
United States government. In two years
time, beginning In the spring of 1870, he
with the means supplied by him, the COM
pany began to build Its line, commencing
work at rhompsons Junction, tweuty.three
miles west OF Duluth. Jay Cooke was then
building a line trom 81, Paul To Duluth
and the Northern Pacific bought a half
interest in the twenty three miles from its
junction TO Duluth. Duluth was an obscure
hamlet in the forest, Inhabited by perhaps
a hundred people. IL had no harhor, but
good one was obtained by cutting canal
across q long Mrfow sandhank enclosing
the bay of SupeySor. Construction was also
begun In the sAme year, on the extreme
western division vi the road, running rom
the Columhts rivur at kalama northwatd
TO Puget Sound. In 1871 the road was fin
ished across Minesctatp the Red river OF the
north, and In 1878 \ was built as Tar as
the Missouri river, where a town was laid
out and named Bismarc. On tho Pacific
side los miles OF road, between the Colum-
bia river and Puget Sound, were completed
! by the fall OF 1878, and terminal city lard
4 L.. a H. m nal
named Tacoma.
BANKRUPTCY AND RK.oRa AsizArIoN.
| The panlc OF 1878 destroyed the bank
ing house OF Jay Cooke 4 Co., and para
lyzrd, for a time, the Northern Pacific en-
terprlse. The company was lelt with
bonded debt OF about $50 900 0OO drawing
interest at the high rate OF 7 $40 per
cent, and with u considerable floating
debt.
rhe earnings on It's completed division
were barely sufficient TO pay operating ex-
penses. The country trayersed by It's line
, had scarcely begun TO attract settlers
: President Smith resigned aud was sue
oeeded by General George W, Cass, and he,
= In turn, by Charles b. Wright, OF Philadel-
. phin. Nothing could be done for time
! out TO persuade the creditors Of the compa-
ny not to press their claims, and TO wait
0 Tor the storm to blow over. In 1870,
!, however, the fnRnces OF the company
u were reorganiaed in n very successful man
= ner The bondholders agreed to take pre-
y ferred stock In lieu OF their bonds, and the
= directors put the company through bank
Z ruptoy court In an expeditions and mex
e pehsiye manner, fighting of all the sharks
u and railroad wreckers that hang about great
y corporations in distress The success or
u this achievement was largely due 10 the
e Hon. Frederick Billings, OF Vermont, who
- afterwards became president. During Mr.
ns Wright'a administration, which lasted rom
VI 1915 TO 1879 the company managed TO pay
ia of its floating debt and 20 operate the COM
IL plrted portions otits road, 80 as TO grad
ually accumulate u little surplus over rum
y ID also built thirty miles OF road on the
so Pacific coast. from Tacoma to the extensive
IN coal field on the western side ol the Cascade
=, mountains. Mr.. Oass and Mr. Cheney,
IN two of the directors, opened wheat farms IN
at the Red River valley OF tho north, which
"a, demonstrated that that region was peculiar
! ly adapted Tor wheat culture. Settlers be-
lst Gan 10 come into northern Minnesota
", aud northern Dakota along the
70 line OF the road, new towns sprang mp, and
rh with this influx OF population, the affairs Of
70, the Northern Pacific wore, year by Year.
yes brighter look.
lns work BEouN AGAIN.
all In 1870 the company had so far recovered
It's credit that II was able to borrow money
20 resume construction operations on
me large scale. II began TO build irop tn
ist' Missouri river westward, and rom the 20
'lh- lumbia river, In eastern Washington terri
oI tory, near the junction oil me SNAKE rver @
on northeastwardly toward Lake fen'
! OF d'Oreile in northern Idaho. The compa
lm- ny did not feel strong enough 10 put Tort
mi, nnv nnAucial scheme for completing the en-
gun tire road, but only asked for money enong
ma TO build two divisions, which u moTtgage
lm- separately, with the land grants atshchin
Ing, to them. In 1880, alter MT, bllllngs M
the succeeded to the presidency, negotption
Use were completed with q syndicate OF bank
9 10 ers. Including the New YORK houses ,
aud Window, Lanier K Co., Drexel, Morgar
Tor 90. ard August, ielfaont q Co, and "
London house of s. Morgan n uo,, y
OF which u loan Of $40 900 900 was placed du
lern ing that and the two following years, 49,
ader money thus secured for completing u
Ter road across Montana and filling the gap
lcer, The track, which then amounted to over y
,na, @ miles.
any HENRY WILLARD OBTAINS CONTROL.
tenn, In 1881 very important change toe
nou. place In the management OF the Northe
nuy Pacifio's affairs. Henry Willard, Germ
peeh by birth, who came to this country AZ v
age of eighteen, aud won considerable re
com' utaiion as a newspaper correspondent d'
ef' inc and after the civil war, and who h
T the become interested In railroad managing
Was i'm Kansas aud Oregon as the representa-
Gem OF large German financial interests, b
king sradnnlly obtained control, during the
vern- wears following the panic OF 1873, OF
transportation lines by rail, river anu
In the state OF Oregon. THESE lines ne !
CHAR consolidated aud greatly extended, so u
niEed thew represented what, for a new count
legis- was n remarkably efficient transportat
ople's system. In 1880 MIR. Willard determin
and ii possible, TO secure harmony OF intert
loS2, and control between his Oregon lines .
" ms the Northern Pacific line, so as TO make
ed his toTmer the western extensions and feed
nd by nj the latter. In 1881 he organized W
bonds was known as the "Blind Pooln In n
btain- York and obtained within n lew WEI
la"d from subscriptions, over $S. 900, 900 ofmou
70 the without disclosing the use which he me
!, Ihe TO make of this large sum, and without
he al ing any other security than his perst
miles rsceInis. With this money and OF
9, ana means OF his own he quietly purchas
ith an controlling interest in the stock OF
an in- Northern Pacific company, and was ele
nay be its nresident In September oi thaI
zen by nlaoing his friend and former assocat,
Fer. railroad management In Kansas and
;, ana ron, Mr.. Thomas II. Oikes, In the
known presidency, as the chief executive oiiic
M nu sA' the company.
' ], .t,ep @ Construction operations went on raI
ny. III uutins lue lsss,9 t,na and in the berin
'n,. I ~, of the year 1859 the track remaining
my ~ constr,ietAd was reduced to about 800 n
,rthern consl, w. ,radtng Mad been mi
tarctic on WniTn er, Wv ,,"s cosed mn durIns
'erham zone, lnis l ,.. hap r ns iSsS "a thai
er, and spring Anu ,andv ~ be united on th,
issning OF September
ne hum There are two great lunngis ~ IN, ~ !,
,mpany one at tha Boteman pass, IN the belt Il
lar sub. tains; aud the other at the Mullan pa
The main division OF the Rocky moun
,yer the The former is 3,6O0 feet long, and the
England $50 teet. The hiRhest sumhs bas
pay his any point on the lne ls IN .ne noi =,
i spade tunnel, which Is 90 leet aooye uns y