The new North-west. [volume] (Deer Lodge, Mont.) 1869-1897, 1875-09-03
Sale of the Northern Pacific Railroad.

At last there begins to be a faint prospect
of the completion of the Northern Pacific
Railroad. The foreclosure sale, which was
made recently, gives general satisfaction to
the bondholders, five-sixIhs of whom have
agreed to participate in the re-organiza-
ton, as preferred stockholders, funding
their bonds, with accumulated interest to
1878, accordingly. The road was bought
in for their account, with the agreement
that new mortgage, not to exceed
demands and prosecution Of the work under
the new auspices. The company thus start
with clear balance sheet, and with their
land grant intact and 500 miles of road al
ready built and equipped.
The sale results in transfer of all the
company's property and right of the bond
holders, the bonds to be surrendered and
cancelled and the holders to receive pre-
ferred stock in the reorganized company,
pursuant to the terns of the plan repre-
sented by the purchasing committee. The
amended decree Of the court, striking out
the words "land-yrant " included in the
property covered by the sale in the first de-
cree, to effect which the sale was previously
adjourned, was read by the aucyioneer be-
fore the sale. The plan of reorganization
provides first for the appointment of the
purchasing committee, which is to assume
management of the road pending the cleo
ton of new Board of Directors. It pro-
vides also that no assessment shall be levied
upon the bondholders, but that all costs of
purchase, expense, of foreclosure, etc,
shall be paid out of the assets and income
of the company. The length of time with
in which bondholde.s may join and partici-
pate in the benefits of the property as left
to the discretion of the purchasing commit
tee, which will probably make early an
nouncement of the limit within which
bondholder may come in or hold on to his
bonds, and accept in final settlement of his
claim his share of the proceeds of the
sale of the property, 100000. The object
of the new organization is to convert the
9:30 bonds, which are those of the mort
gage just foreclosed, into preferred stock,
by adding the interest to the principal of
the bonds at s per cent. per annum from
July 1st, 1878, the date of the last payment
to- and including July |, 1878. This will
give the stockholder 81, 400 of preferred
stock for every $1,000 bond that he holds
The amount of 81, 400 is arrived at by its
bearing the same relative proportion to
81, 900 that the whole amount of $51, 900, 600
bears to the entire indebtedness of the
road, which is made up of mortgage bonds,
$50, 500, 900; interest, $4,000, 900; land war
rant bonds S732, 500; floating debts, amount
in all to about $36, 600, 900. The stock is to be
entitled to dividends up to per cent, as
it is earned, afte. July 1st. 1878. The pre-
ferred stock is to be CONVEX tible at par into
any lands owned or to be owned by the
company easS of the. e.NIissouri r.ver in Min
nesota or Dakota. These lands now
amount to nearly 100000 acres. The pro-
ceeds of their sales are to be applied to the
purchase of preferred stock The common
stock is not to be entitled to dividends
until s per cent per annum is paid on pre-
ferred stock, and it can have no vo.ing
power until after July 1, 1878. For the
construction and equipment of the road
the issue of first mortgage bonds, not to
exceed an average of $25, 900 per mile of
road actually completed and accepted is
provided for. These bonds are to be
first and paramount lien ON the whole road,
including its equipments, lands and fran
chises, but subject to the rights of the pre-
ferred stock, until any default is made in
tbs provisions of the mortgage. Eond-
holders representing over $24, 600, 600 of the
$50, ,000, 900 bonds of the road we see it
stated, have already assented to the adop-
ton of the plan.