Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1875-07-24
OLYMPIA. SATURDAY MORNING, JILL q. 1915
THE PLAN OF THE BONDHOLDERs.

THE PLAN OF THE B0NDhOLDhhS.
AT "a meeting of the bondholders OF
the Northern Pacific Railroad, held in
New York City on the eth inst, the
committee appointed at the meeting in
March reported plan of action which
WAS substantially as follows: A board
of which tombstone Livingston of New
York is suggested as chairman are to
be authorized to attend the sale of the
railroad and other property of the COM
pany with view TO purchasing the same
and taking title therefor, Tor the benefit
of all parties asserting to and comply
ing with the conditions of the plan; to
assume the management of the railroad
and property when they shall have ac-
quired title thereto; to attend to the
issuing of bonds and stock, perfecting
title, and generally to do all things that
may be necessary to the complete exc
cution of this plan and to place the rail-
road again under the control and oper-
alton of board of directors to be here
after chosen. The report further sug-
gests that upon the sale Of the railroad
and other property and the acquisition
of title thereto by the board or commit
tee, the present stockholders shall sur
render their certificates of stock into the
hands of the committee, to be held by
them as muniments of title, to be used
accordingly by them. Preferred stock
is to be created and used to the amount
of $51, 000, 900, majority of the share
capital, to retire the interest of the Z
$40 bonds and interest thereon up to
July, 1878, at the rate of eight per cent.
per annum, and the principal and in
terest of the land-warrant bonds to JAN
uary, 1865, pay the floating debt not
protected under existing orders of the
court, and generally for carrying into
effect this plan.
The usual provisions are embodied in
the plan for raising money to build and
equip the road by the issue of mort
gage bonds not exceeding S25, 900 per
mile, and their redemption after forty
years by means of sinking fund, for
which provision is likewise made.
A strong sentiment was manifested
in favor of postponement of the sale,
in order to allow time for all the bond
holders to come into the movement. It
was likewise urged that delay would aid
in the development of the country and
enhance the value of the road day by
day. Mr.. Billings explained the plan
at some length, and answered numcr-
Gus inquiries as to its details. He said
that the road was completed $50 miles,
and the remainder to Helena, taking in
the rich Yellowstone country and Mon
tana, could be completed at SIT 900 or
5000 mile. When the road reached
the Yellowstone zsgioa share E7ouIa -
a steamboat connection that would
practically control the Montana trade.
This part of the work would cost SO, ;
100000.
After much discussion & was resolved
First-That no assessment shall be levied
upon bondholdefs.
Second-That the costs of purchase and
foreclosures shall be paid out of the assets,
resources, and income of the road.
Third-That the time allowed bondholders
70 enter into the movement shall be left to
the discretion of the committee.
Fourth-That holders of common stocl,
shall have no power to vote until July l, 1878
Finh-That the 100000 authorized by the
amended decree of the Court to be paid for
interest, &C., shall be paid pro rata.