Bozeman avant courier. [volume] (Bozeman, Mont.) 1872-1882, 1875-08-27
NORTHERN PACIFIC h. II.

ws.tsuia
NORTHERN PACIFIC b. II.
The Biggest Auction Since the
Sale Of Rome's Throne.
Thirty-six Millions Of Dollars Of Indebtedness,
| Ten Millions Of Acres Of. Land, and Five
Hundred and Fifty Miles Of Iron Rail.
From the N. Y. Daily Sun. tahl
| The Northern Pacific Railway with all
the franchise Of the company, including
! the franchise to be = corporation.
and all property Of the company. except
those lands that have been patented and
certified were sold by auction yesterday on
the steps or the Custom House. The sale
was the result OF friendly suit instituted
BY the. bondholders, and the purchaser
was Mr.. Johnston Livingstone. the Chair.
man OF the committee appointed BY four
fifths Of the bondholders to bid the road
lin for them, and the price paid by him
was 500 600. On the 18th of March
last, the first meeting OF bondholders
was held at the call Of the directors OF the
company, to confer and::act concerning the
Interests OF the road generally, and esp c
tally in relation to a bill prepared for in
into Congress for the relief
OF the road. Congress, however, before
the day Of the meeting, adjourned with
out having had the. bill. before it, and
the bondholders were thrown back upon
themselves.
| THE ITEMS OF INDEBTEDNESS.
President Cass presented report show.
ing that first mortgage bonds had been
issued to:.the amount Of $3l'650 900, and
that $50, 400, 900 were then outstanding.
There were also out 1872 500 in land
script and land warrant bonds. Land
had been converted Into land. I6llky 400
ing debt. exclusive ofinterest due on the
bonds, was 1854, 900, and the interest
then amounted to over $4,000. 0O0. Be-
sides these we.l-founded claims there
were the demands Of stockholders, who
held $25, 900, 600 of stock. some Of which
|they had obtained from Jay Cooke MS a
premium on their bonds, and of owners OF
a small amount Of preferred stock.
Theas consisted OF $50 miles of COM
pleted road in operation and sclf-support-
ing inMinnesota, Dakota, Washington Ter
ritories, and 10, GS4 900 acres ofland earn
led by the completion OF that extent Of
road. Only a portion OF this land has been
reduced to actual possession BY the com
pletion Of surveys required by Gov
trnment.
A committee composed of the men most
heavily interested ia the road was ap-
pointed. and in their subsequent confer
ence they decided that the early compile
tition OF the road was the vital point to-
be secured: and that as a preliminary
the vast Indebtedness must be put into a
ne;s form, which would admit of a remort-
gazing OF the property On the 10TH Of
April they petitioned Judge S!hipman to-
appoint receiver of the road. and Gen.
Cass was selected. On the 18th dey G
May. Jay Cooke aud 6 harielnegnc Tow er
the trustees OF the mortgage. united with
the aonaholdefs' committee, and applied
TO the courts for foreclosure of the
mortgage aud final decree of sale, which
were granted.
THE PLAN OF REORGANIZATION.
The committee then called another
convention Of the bondho.ders to meet
on uia 10Th Of June, and presented the
following scheme tor their approval:
l. That a committee should be an
pointed to attend the sale OF the road
with view to purchasing it fer the ben
eft OF those OBSERVATION-DISCLOSURES. to the
conditions OF the plan.
2. That after the purchase the cap
tai stock should be fixed at SlO0, OOO, GOO.
and divided into preferred: and ccmmoD
5. That preferred stock should be cre-
ated to the amount OF SOL COZ, 200, to re.
tire the first mortgage bonds, to cancel
the land warrant bonds, AMI pay the float
ing debts. c'Latthe preferred stock should
have all the right OF the common stock
hat the holders should be entit!edto such
not exceeding per cent, asl
the net earnings ofthe road might suffice
to pay, and should be convertible at par
value into any lands belonging to the COM
pany east OF the Missouri river.
4. That.common stock should b. issued tot
amount of $40, O00. 600, but that the
owners Of it should have no right to vote
IN it until after July 1st, 1875; and should /
receive no dividends. except at the discre-
ion Of the directors, and only when the
let earnings might be sufficient to paw
interest and sinking fund Oh the newt
mortgage debt, and s per cent
N the preferred stock. This common
tock to be issued In exchange for the
I'D stock, share for share.
5. That new FIRST mortgage bonds
hOuld be issued not to exceed an averaged
4 So. 900 per mile of road actually COM
'leted and accepted by the President OIL
he United States, to be secured by a
mortgage or mortgages, which sta II be a
lrst and paramount lien on the whole line
i road constructed and to be construct
q, aud on the equipment, property,
aDds and franchises Of the company, ac-
uired and to be acquired.
THE BIDDERS AUTHORITY.
The terms Of this plan were agreed tu|,
by the bondholders who
ssembled On the 3Oth day Of June andll