Bozeman avant courier. [volume] (Bozeman, Mont.) 1872-1882, 1875-05-14

Northern Pacific Bonds.
! New York Sun, April 23d.I
j At . meeting of the Directors of the
1 Northern Pacific Railroad yesterday. Gen .
George w. Cass, President Of the road, !,
rendered his resignation, TO take effect
from April II, the date of his appoint
ment as receiver by Judge Shipman. The
Resignation will be accepted to day, and
Judge Rice of Maine will probably be
Ielected to fill the vacancy. Such was the
feeling Of tho dirsctoss last night.
In the afternoon there was meeting of
the Bondholdcrs' Committee, attended by
Johnston Livingston of New York. VIM.
Window of Minnesota. VIM. Mcknight
of Pittsburgh, Gen. Stark of Lowell. ].
N. Hutchinson of Philadelphia, and ]. n.
Denison of Baltimore. These gentlemen
with ex Gov. Coburn constitute the COM
mittee - now formed. The work ycster.
day consisted principally ofan investiga.
ton of the liabilities and assets as fur
nlshed by the company's reports. BY these
lit appeared that tho assets consist of $50
miles Of finished road and oyer 10, 0OO 600 Of
acres of land, while the liabilities are mort
gagged bonds TO the amount of $50, 600,
GOO. stock to the amount Of $25, 600, 600,
which was distributed as premium to
the bonds, and floating debt of less than
$7C0, O'0, of which $500. 600 IS due to the
directors of the road. Besides this there
i is So, 500. 600 of back Interest due, which
is unclassified and which vii! probably be
relinquished by the bondholders in their
settlement f the present difficulty.
After the examination of these reports the
committee discussed with the company's
officers the financial difficulties of the road
and the best way out of them. Three
plans were prominent among the many
proposed; first, to form an association of
bondholders that might be strong enough
to foreclose the mortgage and buy in the
road; second, for the b0ndh0lders to ex
change their bonds for preferred stock.
leaving the completed road clear of debt
as the basis of new series of bonds. and
then later to effect second exchange of
bonds for the stock if desired; third, to
hold the road built and lands earned as
sole security for the bonds now out, to di-
vide the road to be constructed into Sec
tions of tw enty five miles, ana to make an
issue of lOnds for each section. to be Sc
cured by that particular section and the
lands earned through it.
At S o. clock the committee adjourned
without taking decisive action, to meet
again today.
In the evening reporter called on Gen.
Stark, of the committee representing q
large number of Massachusetts bondhold-
ers, and learned from HIM that the third
plan mentioned above was the favoritc
lone with the committee yesterday after
noon. The necessity for a compromise
If some SORT is evident said Mr.. Stark,
and one that involves some sacrifice to
the bondholders. And yc: it Seems as
though it leaved US ample security. For
our $50, ,OO0. 900 boHds we have 500 miles
Of road. which netted last year $l25 ZOO,
and over O,000. 900 of acres of land.-
That is the very worst showing we can
make for ourselves, and it is one BY which
we relinquish our lein on the possibilities
lnf f1o finished r0ah ~
"But." asked the reporter, sis the feel
ling of confidence among the bondholders
|general?"
"Well, sir" was the reply, I'm Massach.
|usetts, which holds Of the bonds $1O,00O,.
1000. and in Pennsylvania. which holds
SO, 600, 900 more, the feeling OF the rep
resentative men, as expressed to day, is
that the road is rich one, which they
stand ready to put money il. in the future.
There was one man prcsen. today who
controls Immediately s1.OOo,0Oo Of the
bonds, who expressed his confidence by
IAN offer TO embark more capital in the
same boat"
"But will the plan proposed be an IT.
trsctive one to the public!"
THAT of course is something we cannot
Judge of completely, but with the figures
before them which You have before you.
lit seems a. though they must have conf
ience in the undertaking. BY our plan"
lcontinued Gen. Stark, ''there will not be
10 large amount of bonds thrown upon the
market ct Once-nOne Of The flooding
which has proved 80 disastrous already.
la section Of twenty-five miles will be lald
|out, and. bonds sufficient to pay for the
work upon it will be issued. These bonds
will hold their particular section of the
road and lands - prior security. and will
moreover have for secondary security a'l
other sections of road anG lands, subject
to the bonds issued upon thcm." Fs*
The engineers estimate on short sec
ton of twenty-five miles can te made so
accurately that an Loscst and economical
administration can complete theroad with
out burdcning it with dollars unneces-
cary mortgage debt
The greatest difficulty, Nj, Stark thought
would be in floating the bonds of the 6rst
section, for unless some additional fea-
lures are attached to the plan the first IN
vestOIs will have no security buts second
ary lien on the existing road until the hrst
section is built. He feels, though. that
such security is ample, as the land already
earned, It cold at half the rate which that
already cold had brought, will more than
eaiisfy the bonds now out, leaving the
road free. a hae el
Another member of the COMMITTEES. . |
like Mr.. Stalk. and not an
officer Of the road, said that the road y |