The Bozeman courier., 1927-10-07

ern route, Wn1cn naQ long ana aD1y Deen |
advocated as the best line to the Pa
F. Johnson, and by Governor Stevens Of
Washington territory who had been in
command of the government expedition
which had surveyed the northern line
in 1853.
In 1864 congress passed q bill charter
ing the Northern Pacific railroad COM
pany and naming as incorporators,
among others, the men concerned with
Perham in the old Peoples Pacific COM
pany. Under this charter the company
was organized in Boston with Perham
as president and an attempt was made
to raise money for construction by popu-
lar subscription to shares Of stock at
800 each.
This ended in failure and after years
futile effort Perham and his associates
turned the charter over to an organi-
zation of New England capitalists and
railroad men who proposed to make the
road tributary to Boston. They elected
]. Gregory Smith as president OF the
company and for several years tried in
vain to obtain congressional legislation
guaranteeing interest on the stock. The
original charter did not permit the is
suance of bonds.
In 1869 amendments to the charter
were procured permitting the company
to mortgage its road and lands conveyed
under government grant, and a contract
delphia to sell the bonds. In period
Of two years this firm disposed Of more
than S30,000,000 of Northern Pacific
bonds bearing 7.3 per cent interest.
With this money the work of construc-
| ton was begun in the spring Of 1870 and
by the fall of 1873 the road had been
completed from Duluth, at the head OF
Lake Superior, to Bismarck, on the Mis-
souri,, and from Kalma on the Columbia
river in Washington territory, to Ia
coma on Puget Sound, total OF GOO
i miles.
The great financial panic Of 1873 pros
| trated the house Of Jay Cooke & Co,
stopped the sale Of bonds and made 1t
| impossible to continue with the con-
| struction of the road. The company was
insolvent and the directors threw it into
bankruptcy. Then, with the assent OF
the bondholders, they reorganized the
company free from debt by converting
the outstanding bonds into preferred
stock
! After the effects of the panic and sue
eeeding hard times had passed, con-
| structiOn was recommended on the Cas-
cade branch from Tacoma to the newly
discovered coal fields at the base OF
the Cascade mountains Then loar
was negotiated for building the Missouri
division from Bismarck to the Yellow
stone river; and shortly after another
loan was obtained for the constructor
mouth of the Columbia river to Lake
Pend d'Oreille in Idaho.
In the meantime several changes haC
occurred in the presidency OF the road
President Smith had been succeeded il
1874 bv General Cass, and he by Charle
| S. Wright of Philadelphia. MIR. Wright
: resignation in 1879 was followed by thi
5 election of Frederick Billings, unde
whose MANAGEMENT the work Of construc
: ton was carried on until 1881. A genera
= first mortgage loan was negotiated u
Il provide means for completing and equip
/ ping the entire line. The times becam
S so good that its bonds were readily soil
. above par by a syndicate Of leading bank
/ ers of New York city.
r In 1881, Henry Willard, who had preVl
ously obtained control of all transporta
ton lines-rail, sea and river-in Oregon
= and Washington, purchased Tor hlmsel
. and friends a controlling interest in tn
Northern Pacific and was elected presi
= dent. His purpose was to combine /
S with his Pacific coast lines.
t Under the efficient management
! President Willard and Vice PTesiden
i Thomas F. Oakes, the work on both end
s of the Northern Pacific was prosecute
S with great vigor during the years 188-
o 1882 and 1888, until the ends OF tn
: track, advancing from both sides OF tn
d continent, met near the summit OF tn
= Rockies in the territory of Montana.
f was laid with impressive ceremonies o
d Sept. %, 1883, at point in the vale
| | of the Hellgate river near the mouth {
It Gold creek. Four trains Of invited guest
n came over the road from the east an
r one from the Pacific coast. Among tn
" distinguished guests were number
n members of the English and Germa
e parIiaments, the British ambassador 6
! Washington, members of congress, Gen
II eral U. S. Grant, the governors OF a
n the states and territories Traverseo Q
a the Northern Pacific, the former pres
" dents of the company and number
: distinguished engineers and scientist
d from both sides Of the Atla-'+ic and reI
% resentatives of leading uewg,2G9 9ers
1t America and Europe.
sr An grafton was delivered by Hon. ".
a EVarts, the last spike r7aS Or. vsn q
4 Henry Willard, and the rossd WAS ini,ni
re diately opened for through Cra9sac
lr The extraordinary decline ID the 1&
Is ket value Of railroad securities VII Il. =
le gan in the fall of 1883 preventea ~
" realization of the plans formed hy 3;
10 Willard, and he resigned the pres,af n,
as of the Northern Pacific, and also of Il
ut Oregon Railway and Navigation conlpaI
at and the Oregon and Transconttnent
Id company, so there was no longer con
1e munity of interest between those con
panies. Later the Union Pacific leas'
~ the entire system of the Oregon Railw;
K succeeded as president by Robert Harr
ad and the general management Of the 70;
Id was undertaken by Vice Preside
MI Thomas F. Cakes.
in The Northern Pacific proceeded Wi
of great energy to build its short line I
20 the Yakima valley from Pasco, at Il
IIs junction Of the Columbia and Sna
II rivers, and across the Cascade mountai
Ve to Tacoma in order to secure access
in tfdewater without being dependent
1v the line of the Oregon Railway AZ
ne Navigation company. The new road "
nt opened to travel in the summer Of 18I
At using high grade switchback line acre
ne the Stampede Pass Of the Cascade mou
ed tains pending the completion Of gre
of tunnel, two miles in length.
M The switchback was a daring piece
engineering skin and was successful
operated for nearly year without acI
- dent. In the summer of 1888 the tunI
" was pierced and one Of the finest mou
Ic tain roads in America, from both an e
c1 gineering and a picturesque point OF VII
50 was completed.
ny In 1887 Henry Willard returned to t
a directorate of the Northern Pacific, hs
py ing fully recovered his former financ
we strength and acting as the representa-
sie of very large amount Of German capt.
lS.1 al 70.