The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-08-13
NORTHERN PACIFIC RAILROAD SALE
Bought In by a Committee Of The Bond
hOlderS---$lOO, 900 the Price
REPORT OF THE PURCHASING COMMITTEE
Preferred, Common Stock and First Mortgage
Bonds to Participate in the Restoration


Yesterday at adjourned sale Of the Northern
Pacific Railroad, with its equipment franchise &C.
took placc-accordng to law and under order of the
Court-on the steps Of the Custom House, in this city
AS may be imagined the group OF gentlemen assembled
before the auctoneer did attract particular
at the entrance to this
BEEHIVE GovERNMENT,
and when the road so fruitful of disaster whom great
bankers was bought for the Purchasing Committee of
bondhoders by Messrs Jay Cooke and Samuel Wilkin-
son, $780, OO0 tho gentlemen quietly dispersed and
only discussed in knots Wall street the future pros
poets of this mammoth corporation which incidentally
produced the memorable panic of 1sI3-whch
swallowed the private fortunes of thousands and sent
hundreds OF hitherto good houses into bankruptcy.
1t may be well in review state that the Court having
found the issue OF bonds legal ordered sale Of all tho
property Of the company August 9 which sale was
by arrangement adjourned until yesterday with the
suit above indicated The proceeds Of the sale OF tho
property must be applied folows:-
First-To the payment of court costs and legal cx-
penses
Second-To the payment of balances due to employees
for twelve months previous to the entering Of the
der. Such amount not 10 exceed $4,000.
Third-To the payment of right of way and land
claims not TO exceed $4,000
FourM-To the payment Of moneys advanced for in
bonds or for labor and material, not to
coed 500 600
Fifh--To the payment pro rata of the bonds and in
terest outstanding tho books OF the company and
trustees without individual proof by bondholders
The purchasers must pay on the day or sale 500 600
cash. The
LAND GRANTS
must be sold under the Of Congress in sections In
the various States and Territories. The decree
amended entered the application of the counsel
the trustees all parties to the bill and all the bond
holders who appeared be heard withdrawing all OBJ
jecons to the original decree and asserting to its
amendment.
The Purchasing Committee made the following report
q short time since to the bondhoders-
REPORT.
The sale of the lands under decree Of Court win necessa-
outstanding Northern Pacific Railroad Com
. Under the adopted plan of reorganization preferred
stock will be issued to each assentng sndhode the
bearing accrued interest from July, 1872 ,,-
for ne RI. w lands Ss az the %os
Foms 10000 acres.
reoganisatcn nenr no expense whaeycr and no liability
Under the decree Of Court as modhed Sonahoders ara
mot eqGd make S pe of their b claim" against %
Of the trustees of the mortgage All tina, is required of bond
end i to the Purchasing COMMITTEE and when NOTIFIED
send their bonds to the pr0pc trust in New York
8 The Livingston Plan ithe only proposed protects
property reorganization q the company with the pres
~a ananmony by ths II Of
holders held in New York, June 30 1878.
to take preferred stock under the plan adopted and thus
lands and their future deyelSp%ent accept in final see
Of his claim, his share of the proceeds the
THE LIVINGSTON PLAN
issued as basis for adjustment, reads thuss-
that The S named W.T.
Woodstock, VI; George Stark. Boston, Mass. William
oSn psD Bsmer constructs
the sale OF the railroad and other property
title hcreio for the benefit IF ali the PARTIES asserting 70
the management Of the railroad and property when they
shall have acquired ,io ,heIc,e attend ths
things that be necessary the complete
the Of Ss
W e sn Be the bond
holders but all costs Of the purchase o>he railroad and
shall paid assets assets and income q ,hs
from the purchase Of the railroad and other shall be
The h cash S. % o for claims ola, under
In case any deutes carrying out this plan
and employ such counsel in their Judgment will
xny I% @ or e said
%ee BY death or otherwise shall be filled by
The committee may act all cases by majority of
unable agree any question, filling a
ing
Of Incorporation and shall be divided into preferred and
the sale of the railroad and the other property
the acquisition Of title thereto ~ the committee above
Gates Of stock into the hand. Of the said committee ,ob
of title, to be used accordingly by them
PRErKRRRp
Preferred stock shall created amount
o. being majority OF the share capital for tho
3-IO bonds the thereon TO become
due and including July 1878 at the rate Of eight
and interest TO and including January $50 Of the land
existing Of the Cont and generally for pur
n S%nF . %.S e Ss Hsep a the rights and
Of the stock with the right 60 vote aud the holders
per per the earnings hereinafter defined
IL f% s be- ya ON E =, @ and before any
After and during the time the income of the road shall be
the stock the surplus shall be divided both
alike share according TO the number Of shares issued of
The preferred stock shall be convertible the par
any lands belonging TO the company hereafter be-
long Of the Missouri River IN the State Of Mime
in Of the provisions of the first mortgage bonds
hereinafter provided Tor and such conversion shall be
until such default shall be used likewise extngush
The met earnings" used above shall he con.
r1ed TO mean scm spi rn te s ra""a az
railroad carrying its business including NIL taxes and
e and and %knp fund on the di mortgage Sc"s
the expenses Of repang or repscng the snd railroad It's
be in high condition, and Of providing such add
for Tie business Of said railroad
COMMON STOCK
Common stock shall be issued authorized by
charter, less the amount Of SOL OoUO preferred
stock The holders Of the common stock shall not have the
right to II until and amer July J. 1874. The
holders Of this stock shall only be entitled TO dividends
year discretion Of the Board Directors when
the net earnings heretofore defined exceed
sufficient pay interest and sinking fund the mortgage
debts and eight the preferred stock Certificates
this stock shall be issued holders Of those
entitled to, certificates share for share and the residue
Tataby originally entitled thereto their assigns
provide complete and equip the road there
shall be issued first bonds not 10 exceed an aver
of ST. 600 mile 81 road actually completed and ac
President the United states 20 be secured
by mortgage mortgages which shall be rst aud para
line Of road constructed and TO DO
constructed and on the equipment property lands and
franchises acquired be acquired including the iran
rhise 10 be corporation subject only the right Of the
holders Of the preferred their stock into the
lands OF the TO be acquired
east Of the Missouri River In the state OF Minnesota and
Territory Dakota also the right 10 she proceeds of
Inc sales of said lands used in the cNtngushment of
said stock until any default made In the provisions OF this
,nor,gago The principal these bonds shall be payable
% yaSr after date aud interest and sinking fund may
he m AIDE nnva able in gold.