The Superior times. [volume] (Superior, Wis.) 1870-1912, 1875-08-19
CHECK FOR 800, 900.
The Biggest Auction Since
the Sale of Rome's Throne.
Thirty-six Millions of Dollars of In
debtedness, Ten Millions of Acres
of Land, and Five Hundred and
Fifty Miles of Iron Rall.

El1Ly miles OF iron hall.
The Northern Pacific Railway
with all the franchises of the com
pany, inclu ling the franchise TO be
corporation, and all property OF
the company, except those lands
that have been patented aud cert
fed, were sold by auction at noon
yesterday on the steps of the Gus
tom House The sale was the re
suit OF a friendly suit instituted by
ythe bondholders, and the purchaser
was Mr.. Johnston Livingston, the
Chairman OF the committee ap.
pointed by four-titths of the bond
holders to bid the road
in for them, and the price pail b,
him was 100000 On the 18th OF
March last, the first meeting ot
bondholC ers was held at the call OF
the directors OF the company, to con.
Ter and act concerning the interests
of the road generally, and especially
in relation to bill prepared for in
PRODUCTION into Congress fer the re.
llet oftI road Congress, however,
before the day OF meeting, adjourned
without having had the bill before
it, and the bondholders were thrown
back upon themselves.
THE ITEMS OF INDEBTEDNESS.
President Ca>S presented report
showing that first mortgage bonds
had been issued to the amount of
50 $4,000, and that $50, 100000
were then outstanding. There wer,
also oat 1892 900 IN land scrip and
warrant bonds. Land warrant
bonds. 10 The amount of S1I5.5OO
had been converted into land. The
floating debt exclusive OF intere st
due on the bonds, was S624.OUO,
and the interest then amounted to
over 81, 800, 900. Besides these well
founded claims there were the de
mands of stockholders, who held
S25, 100000 Of stock, some OF
whit h they had obJalued from JAY
Cooke as a premium on their bonds,
and of owners of small amount OF
preferred stock.
The assets consisted of 553 miles
OF completed road in operation and
selt-supporting in Minnesota, Da-
kota, and ashington Territories,
and l0,684, 900 acres of land earned
10y the completion of that extent of
road Only a small part of this
land has been reduced to actual
possession by the completion Of sur
veys required by Government.
a committee composed of the
men most heavily interested in the
road was appointed, and in their
subsequent conference they
decided that the early compile
tlon OF the road was the vital point
to be secured; and that as a preIinl-
mary the vast Indebtedness must
be put into new form, which would
admit of q remortgaging Of the
property. On The 10th day of April
they petltioned Judge Shrman to
appoint receiver of the road, aud
Gen. Cass was selected. On the
18th day Of May Jay Cooke and
Charlemange Tower, the trustees
of the mortgage, united with the
bondholders' committee, and APP
Piled to the courts for a foreclosure
of the mortgage and final decree. of
sale, Whlch We're granted.
THE PLAN OF REORGANIZATION.
The committee then called an
other convention Of The bondholders
TO meet on the 3Oth day of June,
and presented the following scheme
tor their approval:
l. That a committee should be
appointed to attend the sale of the
road " lth a view to purchasing it
for the benefit Of those bondhoIders
asserting to the plan.
2. That after the purchase the
capital stock should be fixed at
500, 100000, and divided into pre-
terred and common.
3. That preferred stock should be
created 10 the amount Of of $1,000
600, TO retire the first mortgage
bonds, TO cancel the land warrant
bonds, and to pay the floating
debts. That the preferred stock,
should have all the rights of the
common stock, and that the holders
should be entitled to such divi-
dends not exceeding eight per
cent, a the net earnings of the
road might suffice to pay, and
should be convertible at par value
into lands belonging 10 the company
east OF the Missouri river.
4. That common stock should be
issued to the amount of $40, ,0UO, 600,
but that the owners of it should
have no right to vote upon it until
after July !, 1873; and should re-
ceiye no dividends, except at the
discretion of the directors, and only
when the net earnings might be
sufficient to pay interest and sink