The semi-weekly miner. [volume] (Butte, Mont.) 1882-1886, 1883-09-12
transferred to the service of the other

| quale exposition OF the northern
pathway across the mountains wa
secured. The survey from the east
under the charge OF Governor Ste
vens, and from the west, conducte
by Captain Mcclellan, met near tn
point where we now stand, and thes
surveys have furnished the basis upo1
which the calculatio rs and combina
tions, corporate and financial, eve
afterwards proceeded, till the poin
was reached when actual construc
tion needed to be provided for.
On the End of July, 1864, the bill
for the construction of the Northern
Pacific railroad was signed by Abra
ham Lincoln. The enthusiasm O
Perham, which anticipated rush o
his cOuntrymen that would bring, i
need be, a million subscribers 10
500 of the stock apiece, induced tht
insertion of clause in the Act pro
hibi ing either the issue of bonds o.
the creation ofa mortgage in aid of tn.
construction. This financial folly
! and much time and labor spent in
trying to obtain from congress yer,
moderate aid by the government, ir
the shape of a guaranty ofinterest io1
a limited period, held the whole en-
terprise in allegiance till, in 1875, the
| obnoxious section was expungeC
from the Act, and some other benefi-
, cial provisions inserted, and the
company took the resolution to build
the road on the faith that capital
would show in the enterprise itself
and in the prospective value OF the
government land-graHt, should the
construction be carried through.
Perham's popular subscription
having proved wholly abortivc, his
organization of the company was
transferred to one made up in New
England in December, 1865, OF which
Governor J. Gregory Smith, of Yer
mont, became the president. The
financial agency OF the enterprise
was offered to, and after careful ex-
animation and new survey, accept
ed by, the eminent bankers, Jay
Cooke & Co., then in the highest re-
pute from their wonderful admins
tration of the immense treasury
transactions il the issue and distri-
button Of the bonds of the United
States.
The wisdom OF the sele ction of this
eminent financial agency and the
immense enginery at its command
were quickly demonstrated. During
the years 1879 and 1871 the company
received nearly $50 100000 from the
sale OF its bonds conducted by Jay
Cooke & Co., and the money was
rapidly applied to the actual building
of the road. The source of supply,
however. proved not to be perennial
nor inexhaustible, and the company
was pressed for funds in the summer
of 1872. A change then took place
in the presidency. The financial
outlook for the enterprise became
ess and less encouraging, till this
gloom spread over al our affairs, and
the general panic Of 1873 swallowed
up the company and its financial
agents in the common insolvency.
But this brief period Of. plenty and
prosperity was well employed.
Never was the prudence Of ma i'g
hay while the sun shines more clearly
illustrated. In this period the road
was built from the east to the Mis-
souri, river and on the west between
Columbia river to Puget's Sound.
Upon this firm basis as the pou sto OF
Archimeiles, the skill ul engineers of
the Company's present prosperity
have lifted the heavy globe from the
cataclysm in which it was engulfed
till now it blaZes upon our eyes.
'.totus in seipso, tcres, aiq"e rotuni,ts :"
General C;lss succeeded Governor
Smith as President, and skillfu!ly
nursed the energies o. the enterprise
during the ing orious period OF its
&c ipse. He became its. Receiver upon
the decree OF bankruptcy in 1875,
and, through the actual cautery of
foreclosure and sale, the property be-
came vested in the present rcoryani-
zation under the honest, generous and
and successful scheme OF
conciiiation between the disappointed
interests OF the past and the hopeful
interests OF the future, known as the
Billings plan. This eminent gen
who unites the unusual dis
of credit rs Il lawyer among
lawyers, and tinancier among tinan-
ciers, became Il Director in the COM
pany in 1879, and has continued in
its management ever since, succeed
ing Mr.. ', right, of Pennsylvania, in
1879, and succeeded by Mr.. Wizard in
1881, as President, after Il temporary
occupancy of the pace by Mr. Bar
ney. AS Mr.. Billings dates his con-
nection with the Company from be-
fore the deluge, he will be able to
correct the impressions of any who,
in the glorious sunshine of to-day's |
may imagine it was not
much of a shower.
The restoration however, of tinan- |
ii Il confidence and strength, was by
10 means immediate or unchecked. |
The preferred stock after the reorgan-
zation commanded only twenty-five
u thirty cents on the dollar in Wal! |
Street, and at one time fell to s. Il |
share, and the common stock to S150. |
\ ppeals to Congress to aid its securi- |
les by guaranty OF interest We're
again resorted to and again refused.
But in the meanwhile the good man-
lgenent OF the fragments of COM
)ttltl 1OituS SlloN Stt lct Ctti ilill-S w !
ome S3)o,O)) in 1876, and some |
800, ,0W in 1878. This kept alive the |
and confirmed conf
lence. The merits of the route and |
he value of the lands when the road
hould be finished We're courageous Y
elied upon by the experienced and
lble men who put their own fortunes
II the enterprise, to attract the con-
idence OF capita and give credit to
he bonds and value to the, stock Of
he road.
And now, the food Of the tide Of
financial prosperity Of the whole
country foated this enterprise which
is ebb had left stranded. The re-
of specie payments by the
in 1879, the rapid con-
-ersion of the public debt into / !, 4.
)! and per cent securities, thcrapid
eduction of the debt itself, set at lib
.rty great amounts of capital for par
icipation in the active emp toyment
# money. These stupendous trans
lctions of the rcasury at once conn
,elied and attracted immense invest
nents in well-founded enterprises of
industry and trade in a country
which, emerged but Fl teen years from
civil war whose sacrifices of able
,odied producers and Of accumulated
wealth had never been equaled-ap-