The daily Argus., 1875-08-19
SALE OF THE NORTHERN PACIFIC
RAILROAD.
Thirtv-Six Millions of Dollars of In
debtedness. Ten Millions of Acres
of Land and Five Hundred and
Fifty Miles of Iron Rail
Sold for $1,000 900.
From the Ee,O York Son, August 1sd.

From the NsW York Son, August 1Sd.
The Northern Pacific Railway with all
the franchise of the company, including
the franchises to be corporation, and all
property of the company, except those
lands that have been patented and certi-
fed. were sold by auction at noon yester-
dav ON the steps of the Custom House.
The sale was the result of a friendly suit
instituted by the bondholders, and the
purchaser was Mr.. johnson Livingston,
the chairman of the committee appointed
by four ffths of the bondholders to bid the
the road in for them, and the price paid by
him was 100000. 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 espe- |
cially in relation to bill prepared for in
PRODUCTION into Congress for the relief OF
the road Congress. however, before the
day of the meeting, adjourned without
having had the bill before it,and the bond
holders we're thrown back upon them
selves.
ITEMS OF INDEBTEDNESS.
President Cass presented a report show
ING that first mortgage bonds had been Is
sued TO the amount of $3l ,650,OO0, and
that S3O,4OO,OOO were then outstanding.
There we're also out 1882, 800 In land scrip
and land warrant bonds. Land warrant
bonds to the amount OF 81 l5,5OO had Deen
converted into land. The floating, DEBT,
exclusive Of interest due ON the bonds was
1854 900, and the interest then amounted
m over 80, 500, 900 of stock, some Of which
thew had obtained from Jay Cooke as q
premium on their bonds, and OF owners OF
a small amount Of preferred stock.
The assets consisted of 553 miles OF COM
rleted road in operation and selfsupport-
ing in Minnesota, Dakota and Washington
Territories and l0,684, 900 acres OF land
earned by the completion of that extent OF
road. Only a small part of this land has
been reduced to actual possession by the
completion of surveys required by Cover
ment.
A committee composed Of the men most
heavily interested in the road was ap-
pointed, and in their subsequent confer
ence they decided that the early compile
ton of the road was the vital point to DC
secured and that as preliminary the
vast Indebtedness must he put into a new
form, which would admit Of remortgag
ing of the property. On the ION DAY o
April they petitioned Judge Shlpman Il
appoint receiver OF the road, ana Uen
Cass was selected. On the 18th day o
May Jay Cooke and Charlemange Tower
the trustees Of the mortgage, united Wit
the bondholders' committee, and apple
10 the courts for foreclosure of the mort
gage and final decree Of sale, which wer
granted.
THE PLAN OF REORGANIZATION.
The committee then called another col
vention of the bondholders TO meet on tt
3Oth day of June and presented the 70
lowing scheme for their approval:
That a committee should be appoln
ed TO attend the sale Of the road with
view to purchasing it for the benefit
those bondholders asserting to the conc
tions of the plan. =.
2, That after the purchase the capt.
stock should he fixed at 800, 100000, al
divided into preferred and common.
3. That preferred stock should be cI
ated TO the amount Of $5l 100000, to
tire the first mortgage bonds, to cancel
land warrant bonds, and to pay the tio
ing debts. That the preferred sto
should have all the rights of the comm
stock, and that the holders should be Ell
tied to such dividends, not exceeding eig
per cent. as the net earnings OF the re
might suffice to pay, and should be G.
yertible at par value into any lands belo'
ing to the company east OF the Mlsso
river.
4 That common stock should be issl
10 the amount of $49, ZOO, 900, but that
owners of it should have no right to
upon it until after July /, 1878;
should receive no dividends, except at
discretion of the directors, and only wi
the net earnings might be sufficient to
interest and sinking fund on the new
posed mortgage debt, and eight per C
on the preferred stock. This comr
stock to be issued in exchange for the
stock, share for share.
8. That new first mortgage bonds she
be issued not to exceed an average OF 5
900 per mile oe road actually compile
and accepted by the president OF
United States, to be secured by m
gage or mortgages, which shall be
and paramount lien on the whole lint
road constructed and to be construc
aud on the equipment, property, lands
franchises of the company, acquired
TO be acquired.
THE BIDDERS AUTHORITY.
The terms of this plan were agreed
unanimously by the bondholders who
sembled on the 3Oth day of June and
been up to the present time ratified by
holders Of over $24,000,00 of bonds,
of the $50, ,500,00 in existence. In
flying the plan each bondhClder auth
ed committee known as the Purcha
Committee, to attend the proposed
and bid in the road for him as men
of q bondholders association.
BY the terms of Judge Shipman's
cree of sale, the proceeds are to be apl
seriatim to the payment of balances
to employees, not to exceed $4,000; t
payment of right of way and land ella
not to exceed $4,000; and finally t
payment pro rata Of bonds and int
outstanding.
Anticipating the possibility of
bidJudge Shipman ordered that $l0(
must be paid in cash on the day OF
anu the rest in cash within sixty days
at the sale Yesterday the first and onl
was bare $lO0,OO0, and was otfere
Johnston Livingston, Esq, chairma
tie Purchasing Committee. The auC
Ger called in vain for larger bids, aud
crying 100000 once-SlOO,0UO tw
Sl0U, 900 three times, he knocked it
ut that price MIR. Livingston exhl