The Dillon tribune., 1883-09-14

ht the dh1 b. tate Of .s-'o per cent,
and withA considerable floating debt.
The 1atniags on the completed d.
vision were barely sufficient to pay
operating expenses. The country
traverssd by its line had scarcely be-
gun to attract settlers. President
Smith resigned and was succeeded by
0snsral Geo. W. Cas-. and no in turn
BY Charles b. Wright, Of Philadel-
phia. Nothing could be done for u
time but to persuade the creditors Of
tho company not to press their
claims, and to wait for the storm to
blow over. In 1876. however, the f.
nances Of the company were reorgan-
lied in . very successful manner.
The bondholders agreed to take pre-
fersed stock in lieu Of their bonds,
and the directors put the company
through 4 bankruptcy court in
IN expeditions and inexpensive
manner, lighting OF ali the sharks
and railroad wreckers that hang
around great corporations in distress.
The success Of this achievement was
highly due to Frederic Billings Of
Vermont. who afterwards became
president. During Mr.. Wright's adj
administration, which lasted from 1875
to 1879, the company managed to pay
ID its floating debt, and to operate
;he completed portions of the road,
10 - gradually to accumulate little
burplus over running expenses.
In 1870 the company had so far re-
oveTed its credit that it was able to
brow money to resume construction
oerxtiens On large scale. 1t began
Il build from the Missouri river
wstward, and from the Columbia
rier, in eastern Washington terri
|>ritry.s near the junction of the Snake
rivr. northwesterly toward Lake
Pc d'Oreille. The company did not
Tee strong enough to put forth any
financial scheme to complete the
entire road, but only asked for money
eno,gh to build two divisions, which
It nostgsged separately, with the land
grAts attaching to them. In 1881,
sfhr Mr.. Billings had succeeded to
the presldency, negotiations were
completed with syndicate Of bank.
EFT, BY which q loan Of &4O,U0e0O
was placed during that and the two
following years, aud money thus Sc
cured for completing the road across
Montana and filing the gap in the
track which then amounted to over
600 miles.
In 1881 = very important change
took place in the management Of thu
Northern Paci6c's affairs. Henry
Willard, - German by birth. who came
to this country ut the age Of eighteen,
and won considerab Q reputation as a
Newspaper correspondent during and
after the civil war, and who had be-
come interested in railroad manage
ment In Kansas and Oregon a. thu
representative Of large German finan.
ctal interests, had gradually obtained
control. during the six years follow.
ing the panic Of 1879, Of the transpo,.
tation lines by rail, river and sea in
the State Ut Oregon. These lines he
had consolidated aud greatly extend.
cd. - that they represented what, for
. Few country, was q remarkably
efficient transportation system. In
1870 Mr.. Willard determined, If possi-
bls. to secure q harmony Of interests
and control between his Oregon lines
and the Northern Pacific line, so a.
10 make the former the western ex-
Eenstons and feeders Of the latter.
In 1881 he organized what was known
y the "Blind Pool" in New York.
md obtained In q few weeks, from
'sbscrtptions. ever s8O000OO of mon-
y. without disclosing the use which
10 meant to make Of this large sum,
md without giving any other security
han his personal receipts. With
his money aud other means of his
'wn. he quietly purchased a control
ing interest in tho stock of the
Northern Pacific company. and was
|lscted Its president in September Of
hat year, placing his friend and
lormer associate in railroad manage
nent In Kansas and Oregon, Mr..
Thomas +. Cakes, in the vice-presi-
iency. a. the chief executive officer
II the company.
The principal eastern terminus Of
he Northern Pacific system is at the
'wtn'citles of st. Paul and Minne-
'polls. In the latter the COMPANY
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