The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1912-07-01

- vial lCuIIudlloH anu IIldN
cial soundness. they were suddenly
wrecked by the panic of 1873.
In Receivers Hands.
Aside from the Northern Pacific
property, the lines in the state of Min
nesofa most important and availab bic
if converted into real assets for the
development of the northwest were
the fragments Of the old ST. Paul e.
Pacific COMPANY. Following the pam
of a receiver. The holders of their
securities in Holland We're more anx-
IONS 10 recover what they could from
IN" wreck than to pnt more money
INT" its completion and improvements
that must be made if the properties
were TO continue to be operated at
all. Their valu" Law tn some extent
In what was left of a land grant.
which would be valuable as soon az
the country should he opened. bur
chiefly in the possibilities of traffic
from the millions of productive acres
in the northwest to be opened to set
tlement by transportation facilities.
Yet so great seemed the task and SO
uncertain the reward, in the general
opinion. that any plan of acquiring
and r"organizing the property was
regarded as visionary in those days
by most holders of capital and most
men of affairs.
After long and close study of the
situation the slender beginning was
made on which we risked our all.
Failure woul he immediate and final
disaster. My associates were George
Stephen, now Lord Mount Stephen.
Donald "A. Smith. now Lord Strathco-
ma. and Norman w. kittson. We
bought the defaulted bonds Of these
properties from the Dutch holders.
Thu - Qra,,,,ort xr.i+l &lo TN,xt ..-
nlittee was executed March 10. 1873.
and practically all outstanding in
dehfedness was subsequently secured.
Inc mortgages We're afterwards fore
closed and tho property was bought
In. For those DAYS it seemed a for
'nidahl" financial undertaking. The
stock of these companies aggregated
s6.ono.ooO. and their bonded indebt-
edness with past due interest nearly
S33."oo'ooo. aside from floating ohli-
cations. These had to be purchased
at prices above those for which they
had previously heen offered in the
open market. The total capitalization
and Indebtedness at that time of the
companies taken over was approXi-
matelv $4,000. 900.
Lines Completed.
The property secured considered
or completed lines from st. Paul Via
". HiltIl'IlN Io 4NIeIToSP. q Instance OF
1o4 miles. n from Minneapolis IN
Breckenridge. a distance of 2o7 miles:
and of two projected lines. one from
Sank Rapids to Brainerd. and one
from Melrose to the Red river at st.
lncent on the international boundary
line. IN these latter some grading
had been done. M about seventy-five
miles of track had been laid. There
were gaps between Melrose and
barnesville. Crookston and st. Vim
cent that must he filled quickly. In
themselves. had it not been for the
promise of the future. these were
scattered tracks in a countrv just
being settled. out of which to con-
strucf a railway system and on which
to base the financing of their pur-
chase and development.
We advanced the money to build
the Red River Valley railroad. four
teen miles of track from Crookston
to Fishers Landing, on the Red river,
making a through route by steam
BOAT from that point to Winnipeg.
While negotiations We're pending. and
also after they were concluded, but
before possession could be secured
through the foreclosure of mortgages
an immense moun of work had to
be done. The extension from Melrose
10 GAINESVILLE must he pushed. and
was carried thirty-three miles. as far
rs Alexandria: and ninety miles were
built in the Red river valley to reach
the Canadian boundary. The former
was necessary to save the land grant.
whose time limit. already extended,
was about TO expire. The latter wa
nadditlon TO connect with a railroad
projected by the Canadian
ment from Winnipeg outh. AS the
properties We're still in the hands of a
receiver an order had to be obtained
from the court for the completion
of the work in Minnesota with funds
furnished by us. Money had to lie
raised to build these lines and to fur
nish equipment necessary for their
operation.
Organize New Company.
I'm May. 1879. the st. Paul. Mime
apolis & Manitoba Railway COMPANY
was organized to take over ALI these
properties whose bonds had beer
largely purchased. whose stocks had
been secured and whose assets We're
10 he bought in under foreclosure. 1t
had an authorized capital stock of
s15.nh0, 600. limited by it's charter to
S2o.Ono.00o. and made two mortgages
Of SS.oo0.00o each. George Stephen
was made first president of the com
rany: Richard r. Angus, vice presi-
dent. and I was chosen genera man
ager. This placed upon me the prac-
tical conduct of the enterprise from,
its formal inception.
The lines IF the new system turn
ed over 10 VI possession on June %.
1872. comprised n mileage of 667
miles. of which 565 We're completed
and 1o2 under construction. From
the beginning its business fulfilled the
expectations of its founders. The an
nual report for 1850 showed an in
crease in earning of 54 per cent. and
the land sales amounting to S1.200.-
200. And now began the long task of
building up the country. No sooner
was a mile of road finished than the
need of building other miles became
apparent. Before Minnesota had fill
ed up. the tide of immiration was
passing even the famous Red river
valley country and flowing into Da-
kota. BY 1880 it had become neces-
sary to add a line down the Dakota
side Of the Red river, to plan for
many extensions and branches. and
two local companies. building line in
western Minnesota, were purchased.
Get Outlet to Lakes.
Only a detailed history of the rail-
road could follow step by step the
progress Of track extension and the
financial arrangements by which CAPT
tai was furnished for these constant
and always growing demands from
this time on. In a brief review such
as this, I can call attention only to
what may fairly be called points of
historic interest in the growth of
what is now the Great Northern sys-
tenn. One of these was the provision
Of an eastern outlet by way Of the
Great Lakes. An interest was obtain
ed in the ST. Paul G. Duluth Railroad
company in 1881. This. with the
building of the Link from Ct Clnl1d