, 1883-09-22

from the northern to the southern and cen
trSl routes Thus, once more in human af-
fairs, the last was made first, and the first
last During this period, however, the agi-
tations of the subject before Congress and
in public meetings by Asa .Whitney, the
convention at Chicago in the spring Of
1919, and al ST Louis IN the fall Of that
vear. the vehement aad persistent prcpa-
gandism of JOSIAH Perham. all had to do
with this northern route. and the feeling
and interest thus awakened and developed,
with this object, were. no doubt. easily
transferred 10 the service of the other routes,
when paramount motives gave them the pre-
cedence In 1858 Congress made appro-
pristions FOR the exploration and survey of
all the proposed routes. and a valuable and
adequate exposition Of the northern path
way across the mountains was secured.
The survey from the East un-
der ,he charge OF Governor Stew
en-, and from the West conducted by
Captain Mcclellan, met near the point where
We now stand. and these surveys have fur
nished the basis upon which the calculations
and combinations, corporate and financial,
ever afterwards proceeded, till the point was
reached when actual construction needed 10
he provided for.
On the II of July, 1864, the bill for the
construction of the Northern Pacific Rail
road was signed by Abraham Lincoln. The
enthusiasm OF Perham, which anticipated a
rush of his cOuntrymen that would bring, if
need be- a million subscribers for 800 of
The stock apiece, induced the insertion OF a
clause Of the act prohibiting either the issue
of bonds or the creation OF mortgage IN
aid Of the construction. This financial folly,
End much time and labor spent in trying to
obtain from Congress very moderate and
by the Government, in the Shxpe of guar
anty of interest for limited period, held
the whole enterprise in allegiance, till, in
1870, the obnoxious section was expunged
from the Act, and some other beneficial pro
visions 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 Govern
ment land grant, should the construction be
carried through.
Perhams popular subscription having
proved wholly abOrtiye his organization of
the company was transferred 10 one made
I'D IN New England IN December, lS65. of
which Governor j. Gregory Smith, of Yer
mont, became the President The financial
agency of the enterprise was offered 10. and
after careful examination and new survey,
accepted by, the eminent bankers, Jay
Cooke Il Co. then in the highest repute
from their wonderful administration of the
immense Treasury transactions in the issue
, and distribution Of bonds Of Tie United
States.
The wisdom Of the selection of This emi-
nent financial agency and the immense en-
ginery at It's command were quickly demon
strated. During the years 1870 and 1871
the Company received nearly $50, 900 600
from the sale Of its bonds conducted by Jay
Cooke & Co., and the money was rapidly
applied 10 the actual building Of the road.
The source of supply, however, proved not
TO be perennial nor ineyhaustible, and the
/ Company WAS pressed for funds in the sum
mer of 1872 \ change then took place. in
the Presidency. The financial outlook for
{ the enterprise became less and less encour-
, aging, til this gloom spread over all our af
fairs, and the general panic Of 1873 swal
lowed up the Company and lis financial
, agency in the common insolvency. But this
| brief period Of plenty and prosperity was
. well employed. Never was The prudence OF
/ making hay while the sun shines more
clearly illustrated. In this period the road
, WAS built from the east TO the Missouri rivel
, and on the west between the Columbia rivel
/ and Puget Sound. Upon this firm basis, a:
the p0u sto Of Archimedes, the skillful en-
gineers OF the Compeny's present prosperity
have lifted the heavy globe from the Gaia
, clysm in which it was engulfed, till now il
. blaZeS upon cur eyes, ''totaS an StpS1, teres
; GtqRe rOtllHdHs.
r General Cass succeeded Governor Smith
I Us President, and skillfully nursed the en-
1 r IL a, tln
, Gus period of It's eclipse. He became lis
? Receiver upon the decree of bankruptcy il
1919, and, through the actual cautery OF
foreclosure and sale. the property became
vested in the present reorganization under
the honest, generous, substantial and sue
cessful scheme ot Cancellation between the
. disappointed interests of the past and the
. hopeful interests of the future. known as
. the Billings" plan. This eminent gentle
| man, who unites the unusual distinctions of
credit as lawyer among lawyers, and !
tinancer among figaacierS became dlrec-
tor in the company in 1870 and has con
| tinued in It's management ever since, sue
ceeding Mr. Wright, of Pennsylvania, in
1879. and succeeded by Mr. Willard in 1881,
As President. after temporary occupancy
| of the place by Mr. Barney. As Mr.. Bill
| lingS dates his connection with the COM
pany from before the deluge he will be able
10 correct the impressions Of any who, IN
the glorious sunshine of to-day's prosperity,
may imagine ii was not much Of shower.
The restoration. however Of financia
confidence and strength, was by no means
immediate or unchecked. The preferred
stock after the reorganization commanded
only twenty-five or thirty cents on the dollar
in Wall street, and at one time fell 10 IS i
share. and the common stock TO $50. Ap
peals 10 Congress 10 aid lis securities by
| guaranty of interest were again resOrted TO
| and AGAIN refused. But in the mean While
the good management of the fragments of
completed road showed net earnings of
some 5000, 900 in 1876. and some 500, 900
in 1873. THIS kept alive the organization
and confirmed confidence The merits OF
the route and the value of the lands when
the road should he finished Were courage
ouslv relied upon by the experienced ana
able men who put their own fortunes IN the
enterprise, to attract the confidence Of capital
and give credit 10 the bonds aad value TO
the stock Of the road.
And, now, the food of the tide Of finan-
cial prosperity of the whole country ioated
this enterprise which its ebb had left
stranded The resumption OF specie pay
ments by the Government II 1873. the rapid
conversion of the public debt into 4, 4, 3i
and 3 per cent secutitles, The rapid reduc-
ton of the debt itself, set at liberty great
amounts of capital for participation IN the