Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1884-09-17

hasten and increase our mai embar-
rassments. ~
Daring the latter part of 1882 and the
fir.t months of 1888 the calls for money
from the construction department while
continuous and heavy, did not yet as
sumo such proportions as 20 give rise to
any apprehension Of an Insufhclency OF
resources. Ii was already evident. in
deed, that the company's resources
would not contrary 70 expectation, be
adequate to fully equip the road for the
e1pected increase Of traffic upon lite
completion as a through transeontlnen-
tai line, and that hence some extra
provision would have 10 be made for
additional motive power and rolling
stock, But as far as cOnsts action pro-
per WAS concerned, no information had
"a vet reached the management from
the engineers, or from any other quar-
ter. foreshadowing deficiency.
For the reasons explained, the tinan-
cial Intervention of the Oregon d Trans
continental Company was continuously
needed. There was, indeed, from the
time it was first granted IN l5o2 until
late in October, 1888, hardly day when
II could have been Withdrawn without
forcing the Northern Pacific into lm-
mediate bankruptcy. Aid was con-
tinued by the allied company IN three
forms: % by cash advances, % by
endorsements, and 81 by loans Of col
laterais. To what extent help was re-
ouirsd and rendered will be best seen
from the fact that during period Of
seventeen months the cash advances
averaged 1874, $50 6r monthly; the en-
dorsement Of the Northern Pacific aver
aged $2,5O0,00 per month for nineteen
months, and cellaterals were loaned for
tventy-two months TO the average ex-
tent Of 81. 227, ZIP per month.
While help was thus being given WITH :
ont stint Everybody in your Board OF
Directors was very willing to admit that
hut for the Oregon Il Transoontinentai
Company the Northern Pacific would
have been driven over the precipice on
the brink of which it stood for nearly
two years. | regret to say that there Is
now disposition in the same quarter
TO forget the services rendered SO freely
in the compauy's hour of distress by
the other corporations
The demands on the treasury for con-
struction and equipment purposes dur
ing the last months of the past fiscal
wear were made at such rate that |
felt called upon to institute close inqui-
rice as to tbs extent Of the money re-
uuirements yet to come. The result
| forced the painful conclusion upon me
that a considerable deficiency WAS In
dead inevitable. TO determine the ac-
tuai extent was, however, exceedingly
difficult, as those familiar with the I'm
certainties of railroad building on so
large a scale and in such haste will
readily understand. The end of the
fiscal year, with the annual closing Of
accounts, afforded Us an opportunity to
ascertain precisely what had already
been expended mp to that time, bat as
TO subsequent wants We still had to deal,
beyond the work done under contract,
with the unreliable factor of engineers
calculations. Ii appeared from the
books of the company that mp to June
Goth, 1883, the total Of expenditures on
account of new construction. renewal
of old road and general equipment al
ready exceeded by nearly six millions
| the total of the cash resources available
for these several purposes, including
the remainder of the forty millions Of
general first mortgage bonds yet to be
delivered to the syndicate.
As TO requirements subsequent to the
date mentioned, it then appeared, from
statements of the engineering and oper
ating departments, aud from existing
construction, material and equipment
contracts, that not exceeding x5,0O0,00t
more would absolutely complete and
equip the main line. .Unhappily, this
assumption was again far out of the
way. Nearly eleven millions more, in.
stead of five millions, we're actually
needed in the erfd. In spite of every
effort on the part of the management
to- be accurate, even the estimates given
in the circular of October 18th, 1883, &c
the holders of the preferred stock were
, exceeded by nearly million, owing t.
miscalculatioNs of the engineers.
Now, the above figures were obtained
as stated, upon the annual balancing OF
the books. and were not known to me
until the middle of August. They were
communicated by me without reserve
not only to the members of the Board
but to any and all stockholders who
called on me for information on the
subject. As charges we're made at the
time that the managsmt mt conceal,
the truth in the premises, il is proper {
make distinct record of the facts OF
the case in this place.
In consequence of the steady excess
of the actual over the estimated calls
upon the treasury, the summer and fal
! months of last year formed a period al
constant and most trying embarrass-
ment for me. In October and Novem
Der. until the proceeds of the sale oi
| $l5,00O,0 600 of second mortgage bond.
became available and afforded perma.
nept relief, / had most desperate
struggle to prevent the suspension OF
payments by the company. For, be II
known, that throughout those tive
months every appeal to the bankers oI
the company for help was met with 1
point-blank refusal. Not one dollal
was received from them. | was com
PEELED To fall back entirely upon tn,
Oregon Il Transcontinental Company
and upon my own personal resources
Once more your company WAS saved
but at heavy cost TO the other com
pany and TO me.
| Including all work commenced anC
finished usder my administration, Oh,
cost of completing and equipping tue
main line was as follows
New construction proper,
with apPurtenances. -. .S35. 6s5, 600 O
Renewal Of old line. 49,. 3,s23, l39 a
Equipment. .............. 3,972, 656 3
Total NEUTRALITY-SUSPICIOUS. 81, $50, 796 4
| Deducting from this total the expend
itures fer renewal of old line, we OBJ
tain $685., 656.9s as the cost of new
construction and equipment. The chic
engineers estimate OF November, 1880
was go. I73.900, showing an underesti
mate of els, 1883, 756 ~, or ever 80 pei
cent, The estimate of January, 1852
was $2t ,00l 600. adding TO which 81,
6o0,ooo, as the approximate cost of o.
miles built meantime OF total mileac,
estimated on in 1880. we obtain an un
deresiimate Of Sll. l56 o56 80, or nearl,
So per cent.
Here Is the true key TO and the sol.
cause of your and ray disappoin.ments
and of the reverses that have overtaker
the Oregon and rranscontiRental Com
pany and me personally. feel SURE
that you and all Just men will absolys
me from all responsibility for them
Al the same time, Justice requires me
TO say that do lot wish to attach I'm.
due blame to the engineering depart
ment. The estimates that came frou
il were made in good faith and in the
light of the best information TO be had
That they we're faulty WAS due in a
great measure 10 an unavoidably imper-
| feet knowlersa Of tina nasnr.i oh.k.