The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1895-09-29
THE NORTHERN PACIFIC.

The fortunes of the Northern Pacific are
an impressive illustration of tho immense
part which hope deferred has played in
the vast and stirring drama OF Western
developemnt. The hope which beckoned
the Purltans across the wide seas to lay
the foundation of a new Zion In the will
derness and which led their descendants
In their tollsome migrations over noun
tains and forests to form new settle
ments in the West, has been the inspira-
tion OF all western progress, but fulfill
ment has always Followed far in the rear
over the graves of successive generations
of pioneers. 1t was hope which built near
ly all the great railroads of tho West
long before there was sufficient popula-
tion or productive development to sup
port them. 1t spanned the continent
with these iron rainbows, cleaning with
bright promise of the future, but as un-
substantial as any benefits to the build
ers, as the prismatlc arch which the sun
paints on the clouds.
The Northern Pacific was, perhaps, the
most daring, as it was the most stu
pendous of all the great nallroad enter
prlses which have been undertaken in
this country-simply upon this optimistic
faith In the future. When ground was
first broken for its construction in the
woods OF Car.eton county twenty years
ago there was no settlement along its
entire projected iine og 1000 miles in
length. The scheme was practically to
bridge the vast soltudes of the western
half of the continent with a railroad
which was to depend for freight and pas
sengers upon the settlement that 1t was
confidently believed would follow fash
upon the heels of the locomotive. The
dream OF the large Drained men who
undertook this colossal project has been
to a great extent fulfilled, but IL was
never destined to be fuln.led In time
to save from loss the sangulne men and
women who put their money into the
splendid venture. When Its builders be-
gan their work the cost Of railroad con-
stnuction throughout the region to be
traversed was at least three times what
IL Is now. Iron rails cost three times
as much as steel now. The road was built
at probably twice what II would now cost
to reproduce it, AN this tremendous
shrlnkage in values fell upon successive
generations OF stock and bondholders. II
proved an instrument OF wonderful power
In the development Of the great trans
continental belt through which II ran.
and carried Northern Minnesota. North
Dakota. Montana and Washington TO
high levels OF prosperity. It reached out
with branch lines In every direction TO |
levy tribute upon the mighty resources |
1t caHed into productive activity Along
its route. But the far-seeing business |
sagaclty, the hope and faith, which Thus
laid hScnd and deep the foundations OF |
Its future business prosperity. were nof |
abe to push witch equal pace the slow |
processes OF compensation. The energy |
With which its managers pushed CON
struction and the acquisition Of new lines |
into new agricultural or mining terri |
tory to widen the domain OF its trih,,- |
tary resources. left little time for earn |
ings to catch up with expenditures 'Dbe
rapldlty Of its development has a,wovs
outstrirQed the growth OF the country
which 1t was its mission to open to cuiti-
walton.
This is the cause OF all It's nnanci,I
troubles. There was nothing visionary In
the faith OF its builders in the ultimate
ability OF the vast productive empire thev
have 0ullt up to repay AZ their drafts
upon its resources. II was founded unnn
the strlctest business circulation. wal,
ocket nothing In accuracy exeept tnn
important element Of time. The lntcrss,
IN bonds natures at fixed Intervals or
tIme' IL succession OF bad seasons
e'ose competition and cut rates radnee
earnings below the demands for money
to ray these fixed charges, tAe faimre
70 pay II Is an act OF Insolvency. Tbe
hohers OF the securities viii take no
account Of the splendid potential re.
sources OF the road; OF its earning mower
II LETT alone to work out the sieann,
proo.om OF its development. Il mas do.
Iauited In the payment OF interest Ana
mat settles II. Theree times while strne-
sing with the stupendons task OF finding
money Tor It's vast schemes OF constrnc.
ilon, or whEe waiting for the earoing
'ower or Vhe road to catch up with the
money expended In It's development. tho
Northern Pacific has been struck with
ne waves OF the financial nanics which
AVE swept over the country For the
hird time IL IS IN the hands OF receivers.
nd for the third time Is forced to 70
arough process OF liquidation ana
lnanciac reorganization. This Ia moi
necessarily a result ot financial mlsman-
cement which, OF course Il fraa.,,
Aarged by disappointed hondholders /,
the usual. almost necessAry. fSfe ~
abroad enterprises. especially Of fal,-os,;
Enterprises projected on such a gleanti,
,a.e as this. which are built not ~ a.
business acready existing, but TO crcate
! the development OF wholly unsstt,ed
ountry. the business on whieh N n
-pendeni fof It's earnlHss There an.
ary few western railroads which have
ot passed through the same experience
I'd sometimes through I series Of them. ,