The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1875-08-20
Reorganiz Ation Of the Northern Pacific Railroad.

Leonie's sake.
ReOrganz IL alton of the Northern Pacific Railroad.
| Az last there begins 70 be d iaIaJ pros
pect of the completion OF the Northern
Pac, fc Railroad. The foreclosure sale,
which was made last Thursday, gives
general satisfaction to the bondholders,.
tive-siXtbs of whom have agree to par
ticipate in the reorganization. as pre-
ferred stockholders, funding their bonds,
with accumulated interest to 1878, ac-
cordingly. The road was bought IN for
their account, with>the agreement that
new mortgage, not to- exceed $4,000 u
mile, should be raised to meet the de-
mands andpr0secution Of the work under
tie new auspices. The company thus
start with clear balance sheet, and
with their land grant intact and 500 miles
| of road already bu 1t anu equipped.
| The sale results in transfer vi all the
fcompany's properly and right to the
bondhOlders, the bonds to be surren-
dered aud Cancelled, and the holders to
| receive preferred stock in the reOrgan-
IZed company, pursuant 10 the terms OF
the plan represented by the purchasing
committee. The amended decree OF the
court, striking out the worus "land
grant," included in the property covered
| by the sale in the first decree, to effect
which the sale Was previously adjourned,
was read by the aucLioneer before the
sale. The plan OF reorganization pro-
vides first tor the appointment of the
purchasing committee, which is to as
sumo management OF the road pending
the election OF new Board OF Directors.
| 1t provides, also, that no assessment
shall be levied upon The bondholders,
| but that all COSTS OF purchase, expenses
| OF foreclosures, etc., snail be paid out oil
tue assets anu income of The company.
Fine length of time WITHIN when bond
holders may join and participate in The
| benefits OF the purchase Of Lhe property
is lett to the discretion OF the purchasing
committee, which will probably make
early announcement OF the limit within
which a DoDdnolder may come in or hold
on to his bonds, and accept IN final sell
tlement of his Gain his share OF the pro-
ceeds Of the sale OF the property, $780,
0U0.
The object of the new organization is
to convert the 7-30 bonds, which are those
vi the mortgage just toreclosed, into pre-
ferred stock, by adding the interest to
the principal OF the bonds at per cent.
per annum from July l. 1878, the date OF
| the last payment OF interest, to and in
Guiding July |, 1878. Tnis will give the
lstockholder 81, 4O0 Of preferred stock tor
otcIy Pl,VOV UOHu Iudt uo uOlu6s Iue
amount OF 81, 400 is arrived at by It's bear
Ing the same relative proportion to 81, 900
that the whole amount OF. SOL, 900
bears to the entire. Indebtedness OF
the road, which is made UP of
mortgage bonds, $30,50O,O interest,
VA, ,OO0,0OO; land warrant bonds, $732,-
SUI; floating debts, amounting in all to
about $36, ,0O0, QUO. The stock is to be en-
Titled to dividends up to 8 per cent, as
1t is earned, after July l, 1878. The pre-
ierred stock is to be convertible at par
into any lands owned or to be,oWned by
| the company east OF the Missouri river
in Minnesota or Dakota. These lands
now amount to nearly 8,000,000 acres.
The proceeds OF their sales are TO be ap-
Piled to the purchase of preferred stock,
The common stock is not to be entitled
to dividends until 8 per cent. per annum
is paid on preferred stock, and it can
have no voting power until after July /,
1878. t<1 w sa s
For the construction and equipment of
the road che issue of the first mortgage
bonds, not to exceed an average OF $25, 700
per mile Of road actually completed and
duly accepted, is provided for. These
bonds are to be first and paramount
lien on the whole road, including its
equipment, lands aud franchises, but
subject to the rights of the pref erred
stock, until any default Is maue in the
provision OF themorlgage. Bondhoiders
representing over $4,000, 900 oil the $780,
00D, 900 OF bonds of the road, we see ii
stated, have already assented to the
! adoption or this plan.-Inter-Ocean.