New-York tribune., 1875-08-13
NORTHERN PACIFIC SALE.

THE ROAD SOLD AT AUCTION TO THE BoNDHoLDERS
PURCHASING COMMITTEE FOR S1OO,O0O-PIAN
OF OBSERVATION-DISCLOSURES VIEWS OF TIE
MANAGERS.
The Northern Pacific Railroad was sold at
public auction yesterday under decree of the United
States Circuit Court The sale took place the steps OF
the Custom-House. The purchaser Johnston Living
stOn Chairman OF the Purchasing Committee OF the bond
holders, and the amount bid the nominal sum OF
100000 The sale included the road with all the Com
pnys franchises and property except the lands which
have been patented and certified and which will he sold
60 days notice hereafter Everything bid in as an
entirety for the Purchasing Committee which consists
beside Mr. Livingston OF Messrs Billings Stark, Moor
head, Hutchinson and DenisOn There was no conpet
tion, and tie Ony bid that by Mr.. Livingston
The 100000 bid was paid in cash by the Purchasing
Committee who will be reimbursed by the new manage
of the road. This fixed in the decree OF
the Court ordering the SALE in order to pay the legal ex
penses of settling the affairs Of the Company.
Among those present at the sale Jay Cooke and
Chareaene Tower the trustees of the mortgage which
fOrecOsed by the sale Gen. g. W. Casa. formerly
President and receiver of the Company; e.
b. Wright, President Of the old corporation ;
william Shaw, F. A. Lane, the Companys counsel ;
Judge Rice of Maine the members OF the Board OF d.
rectors, and a number OF other bondholders. The
amended decree striking the word Gland
grant included III the property covered by the sale In
first decree read by the auctioneer before the
sale. The Farmers Loan and Trust Company was
designated by the Purchasing Committee as the Gus
todian Of the securities which are to be called in
The Purchasing Committee declared yesterday that
there perfect unanimy among the bondholders Of
road in support OF the plan OF reorganization about
to be carried ont. The managers OF the road affirm
that the foreclosure sale Of yesterday has lifted an
incubus OF the road which bound the Company hand and
foot that could not build mile OF road, or improve
its property. The foreclosure was in the in
M fhp road in
the hands OF the bondholders and enable them
to go with its construction. The total bonded
Indebtedness. under the mortgage. amounted to about
$50 600 900 On this interest at the rate of per
amounted to over SIo 900 taken from the Conpanys
pocEeis while they weIe unable to do anything toward
the completion Of the road II provided In the
decree OF sale that II the road should be sold
r oss Sa sn e s fsG p :. ns d IN on he
Under this provision II any outside person had bid OF
the road he holding no pods would nave Deen Obliged
bidding above him could pay in bonds instead Of money
Thus was made ct n Ss % the rGaa TO
The plan OF reorganization which will now be carried
ngson plan It provides first for the appointment Of
the Purchasing Committee which IL 10 assume The man.
OF Directors. II provides that assessment what
ever s shall m be levied nr"n the SDndnoders
and Of @ The copany @ The length Of time Within
senefts Of the purchase Of the property left the
discretion of the Purchasing Committee. The object OF
the organization IL 10 convert the 80 bonds (Which
are those OF the mortgage Just oreclosed into preferred
stock by adding the interest to the principal of
the bonds al eight per cent per annum from July l.
1873 the date OF the last payment Of interest 10 and
including July 1, 1878. This will give the
stockhoder $I,40O Of preferred stock for every
81 bond that he holds. The stock is TO lie entitled
to dividends up per il il earned after July
1873 The preferred stock is 70 be convertible at
into any lands owned to be owned by the Company
east Of the Missouri River i'll Minnesota or Dakoia.
These lands amount to nearly 5000 900 acres The
proceeds OF their sales to be applied 10 the purchase
Of preferred stock. The common stock ia moi to be
entitled TO dividends until per cent per annum is
paid on preferred stock and 1t have voting
power until after July 1873 For The construction and
equipment Of the road the issue OF FIST mortgage bonds,
not TO exceed average Of 900 per mile OF road
actually completed and duly accepted IL provided for.
These bonds 10 he first and paramount lien the
whole road, including its equipment lands and
franchises but subject the rights Of the preferred
stock until any default is made in the provisions Of the
mortgage.
Bondholders representing over S24.O0O,C0O Of the
S0O00000 Of bonds OF the road have already nted
to the adoption Of this plan. The Of the road
express most hopeful of future. They state
that with the adoption OF the plan OF organization,
covered by small mortgage they cannot fail TO make
IL complete success by developing the Of Mon
and Nevada and opening up the the North
WaAf