Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1936-12-12


I'd erick Billings, for whom tn
MI city OF Billings was nance
AWA His work as the financia
genius who reSuscitated tn
fragile and failing Northern Pacift
railroad of the seventies, had a larg
part to do with the development, no
only Of this state, but OF the entir'
northwest. Under his directing efforta
the road was pushed from eastern Da.
kota into Montana, across the Yellow.
stone and the Rockies to give Butte {
direct outlet to the east, route ovel
which it could obtain equipment need
ed in mine development and over
which it could ship ore and metal. The
fertile Bitter Root and Deer Lodge
valleys we're opened and the lumber
industry in western Montana saw the
start Of its prosperity with the arrival
of the road. With the completion of the
line to the Pacific coast the Treasure
state was given transportation faci1-
ties which saw the real start of all Of
its various industries.
The livestock industry, including cat
tie and sheep, was the first in Mon
tana to benefit by the advent Of the
Northern Pacific railroad. Before 1t
reached the borders of the state, mar
kets were reached only by long and
expensive drives to the end of the line
With its arrival in Miles City, all that
was changed Markets we're easy to
reach. The number of cattle and sheep
upon the prairieS doubled and trebled
in a remarkably short time. Settlers
flocked in. AS the road reached Bill
hngs. then Bozeman, the advancement
Of the state progressed at an astonish-
ing rate.
Salt Lake to Butte Only Line
Before the Northern Pacific came
into the state, the only railway Mon
tana had was the Utah g. Northern,
Butte. 1t was later known as the Ore
gon Short Line and is a part of the
Union Pacific system Closely follow
ing the Northern Pacific came the
Great Northern, built by James j. Hill.
The Great Northern did for northern
Montana what the Northern Pacific did
for the southern part of the state. Hill
overcame great difficulties in building
his road. Little of it tapped such inn I
mediately productive territory as did
the Northern Pacific, nor had it the
benefit Of government land grants as /
the Northern Pacific did.
Without the land grants and the /
hand of Frederick Billings at its helm, (
it is quite probable that the Northern /
Pacific would not have reached Mon
tana for several years after it did, and |
the development of the state would /
have been delayed accordingly.
Billings became interested in the
Northern Pacific in 1869. He was its
president from 1879 to 1881. It was
largely due to his efforts that the
Northern Pacific was reorganized and
given new life after the collapse of
1873. He had, in 1859, purchased a one
twelfth interest in the property from
Hiram Walbridge. In 1870 he was elect
ed to the directorate. in which body
he retained membership until 1885,
In 1879 he was elected president of
the system, but resigned two years
later when controlling interest in
the road passed to the Willard group
AS chairman Of the land committee,
he organized the land department of
the road of which he was managing
director until the reorganization of the
company in 1875. In 1871 he had a part {
IN locating the crossing of Red river
and, In the following year, the terminus {
1n Puget sound. {
In 1873 Billings was one of COM
nittee formed for the purpose Of en-
isting capital in San Francisco and ar l
angling for construction of the road on /
he Pacific side. Other members of the i
committee were r. D. Rice, vice pres h
dent of the road, and w. G. Moor 6
lead, a director. William Minor Rob- 6
= boy bAAC CAASA44CCl III CA4lC1s MEllb Will y
he committee to San Francisco. n
Stock Hard to Sell 4
At that time the Northern Pacific Ii
took was not regarded as profitable +
lveStment; even its preferred stock II
cling almost unstable Following the II
allure of Jay Cooke g. Co., its bonds
ad become q drug on the market and T.
honey for the immediate needs of the l.
bad could be borrowed In only small Il
mounts and then by pledging $4,000 81
+ so of its best securities for 81 900 Il
ash. 1t was at this time that Billings, B
S chairman of the executive commit VI
se, suggested the plan of reorganiza- Ia
on which eventually pulled the road v
ut Of the hole and placed it upon q b;
Jund financial basis. CT
On April IS, 1875, bankruptcy pro- az
ceilings were begun in the United
tates circuit court Of New York. n
ieorge w. Cas-, then president Of the di
ompany, was appointed receiver. A few fc
eeks later a decree of foreclosure was TT
gned. Then the plan of reorganization n,
as carried into effect by a committee a
ppointed by the bondholders, in whose S,
interest the entire property was pur- I'll
hased together with all of the COM W
any's rights and privileges. Thus did fl
ne bondholders themselves become the
body styled the Northern
acific Railroad Co. fC
Before the end Of the year more than bl