The daily intelligencer. [volume] (Seattle, Wash. Territory [i.e. Wash.]) 1876-1881, 1879-07-09
THE NORTHERN PACIFIC RAIL.
0OAD.

2, 1864. and vas authorized to construct
q line from Lake Superior to Puget
Sound. Washington Territory. and Q
br>nch 10 that Territory southward TO
Portland. Oregon Large grants Of
lands ~ere made TO the corporation
The work Of constructing the new road
was undertaken with considerable pros
pect Of success. but the great CONNER
cisl panic Of 1873 seriously interfered
with its progreAs. Oo January !. 1874.
the company made default in the pay
ment of interest on bonds. In April.
1878, it's entire property Vas placed 10
the hands Of Rsceiver. and On Angus,
25 Of the sane year the road. rights
and franchises were sold under fore
closure. The bondholders OF the com
psny had organized in March, 1873. to
protect their interest in the property,
and on June 30 plan for the reorgan
izstion Of the company was agreed upon
by them. under " Inch the property was
purchased.
Under the provisions Of the plan no
assessments we're levied upon the bond
holders. the expenses Of the reorgani-
zation being psid out Of the assets OF
the company. The capital stock Of the
new CON psny was 6xed st 500 ,OOO. 900
and vas divided into preferred and
common stock. The preferred stock
was f1ed 1t Isl. .0OO. 600. and Was is-
sued ~ to retire the principal Of the
outstanding Z $40 bonds, and the in
terest due on them up to and Including
July l. 1878. st the rate Of 8 per cent.
per snnum ; (2) to retire the principal
and the interest to and including Jsnu.
airy /, 1875. of the land warrant bonds :;
90 TO pay the floating debt not pro.
tectsd by the orders Of the Court. aud
~ for the general purpose Of carrying
into effect the reconstr uction scheme.
THE PLAN OF REORGANIZATION.
The preferred stock had the eIclu-
sive right tn vote previous to July. 1873;
it is TO receive such dividends. not sx-
ceeding 8 per cent. per annum. as the
roads net earnings may sufics to pay.
before tn. payment OF any dividends
on the crmiHOn stock. When the IN
come Of the com pany is sufficient to pay
y pSB op oNtu PsS-
tcrr-d and comm mmOu stocks. any existing
surplus Is to 10 divided on both the
preferred and common stock alike per
share. sccor ding to the number cf
shares issued Of eacn. The preferred
stock is convertible at it's par value into
the land, of the company east Of the
Missouri river in Minuesn.s and in
Dakota Territory. The proceeds OF All
sales Of such lands are to be used in
sxtinguisbment Of the preferred stock.
Both the preferred and the common
stock now have tho privilege of voting.
Common stock is to 10 issued TO the
amount Of $4,000, 600. and is exchang.
able for the stock of the old Company.
share for share This stock is only 10
he entitled to dividends each year. at
the direction Of the Board OF Directors,
when tho net earnings of the road shall
exceed Oil amount sufficient to pay the
interest ard provide for the sinking
fund of the mortgage debts and 8 per
cent on the preferred stock.
To provide the means to complete
and equip the road . system Of first
mortgage bonds secured upon separate
divisions Of the road has been adopted.
The Missouri Division. Of 200 miles,
now under construction from the Mis-
souri, river to the Yellowstone region
has lately been bonded for Sl2, 900 per
mile. These bonds are secured by .
first mortgage upon the lands OF tue
division, run for period of forty years
and draw interest 1t the rate Of 9 per
cent. per snnum. The interest end
sinking fund are further secured by .
lien upon the earnings Of the entire
road. The completed portions Of the
company's road in Minnesota and 10
Dakota and Warrington Territories are
NOT bonded. - they were constructed
by the old company. whOes bonds are
now converted into the preferred stock
OF the new organization.
RIGHTS ACQUIRED UNDER THE REoRaAN.
ILATIoS.
The now company acquired BY the
foreclosure SIS miles Of railroad in cp.
Grafton. and the following amounts OF
lands: 1885. 800 acres in Minnesota and
Dakots. and 2.al5.9l7 acres in Wash
ingtoo Territory. sggregsting l0.l1l.>
liz acres. 4 controlling interest 10 the
stocks Of the St. Paul and Pacific Rail.
roa1 Company. the Lake Superior aud
Puget Sound Company. and the Tscoms
Land Company. wss also acquired by
the conpany under the foreclosure.
Since 1878 the conversion Of the old
bonds into new preferred stock. and the
exchange OF preferred stock for the
company's land east Of the Missouri
river. il is stated, have progressed very
favor1bly. There a:e nov outstanding
only bstween 81 .O0O. 900 and 81. OOO. .00O
bonds Of the old company. The amount
Of prslssrsd stock that will be issusd
in the conversion Of bonds and coupons
10 about a., ,0O0. 900.
The last balsuce Aheet Of the COON
pany showed that 3SS. sos. $40 preferred
stock had been isued. There had
been surrendered 81 Goa 997 drst oest.
gage :bonds and go. .eo6. .S3l interest
coupons. OF tho common stock ts6..
iso. 500 out Of &i0, ,000, 600 bad been 10
sued, and $eS. S.9ls. go stock Of the for.
mer organization had been surrendered.
On land Gales to July 81. 1873. $5,o93.-
024 preferred stock and scrip had been
received and cancelled.
Ohicers Of the company state that
the operations Of its land department
have been very satisfactory. The 6rs,
sales Of land by the company we're
made in Nay. 1871. The total sales e
May !. 1879 amounted to 2si1.Ul