New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-03-22
PRICE FOUR CENTS.
RAILWAY INTERESTS,

q AN AFFAIR OF NATIONAL IMPORTANCE. {,
ISSUING THE RESIDUE OF NORTHERN PACIFIC con
MON sToCK-rHIs ACTION THE RESULT OF M
PRESENT HIGH PRICE OF TIE sTocK-ASoTHER
ELEVATED RAILWAY SCHEME IN BRooKLYN--THE
READING ELECTfON.
A distribution of nearly $1s,000,O00 Of
common stock has been made by the North
ern Pacific Railroad Company. The stock has
been held in the company's treasury
since the reorganization. and the issue
adds nothing to the company's funds!
The distribution was made at the
earnest solicitation of the original proprietors,
who were entitled to it under the terms Of
the plan of reorganization. The third Rapid
Transit Commission in Brooklyn yesterday,
decided upon routes for elevated roads. At
Philadelphia yesterday, George NJ. Dallas
fled in Court his report as master of the
Reading Railroad election of last week. A
decision was made yesterday in the United
States Supreme Court affecting the title TO
lands held by the Chicago, Rock Island and
Pacific Railroad Company.
NORTHERN PACIFIC STOCK INCREASED. f.
THE RESIDUE OF COMMON STOCK. AMOUNTING TO
NEARLY $18.000,O00 AT PAR, ISSUED BY THE
DIRECToRs-CoMPLETION OF THE AMOUNT AU-
THORIZRD BY THE ACT OF INCoRPoRATI0N-THB
REASON FOR THE ISSUE d.
The directors of the Northern Pacific Railroad
Company at a recent meeting decided to distribute.
the residue of the common stock, amounting to
nearly 1S0 900 shares, which has been held in the
eompany's treasury since the reorganization in
1875. The subject OF issuing this stock was con-
sidered at the regular monthly meeting Of the
directors last Thursday. For personal reasons
quorum of the Board could not be kept together
until the next day, and the matter was left to the
Executive Committee. On the following day that
committee voted to distribute the stock, and in ac
cordance with that decision circular letters were
forwarded to the persons entitled TO receive the
stock. A part of the stock has since been issued,
and the certificates are ready fordelveTy whenever
they shall be called for. This issue completes the
total amount of common stock authorized by the
plan of reorganization and by the act Of incorpora-
tion-$49. 100000.
The reason for the distribution Of the stock Is said
by officers of the company to be the anxiety of the
persons entitled to receive it to realize their profits
at the present market value of the stock The chief
opponent of the issue has been the president Of the
company, Frederick Billings, who was unwilling
that the stock should be issued any faster than the
road was completed aud accepted by the Govern
ment The pressure brought to bear upon the
Board became so great that it was decided to mako
the distribution at once. The stock belonged under
the terms of reorganization, to the original propri-
etors but the issue was wholly at the discretion OF
the directors.
The Northern Pacific Railroad was sold under
foreclosure proceedings in 1875 to purchasing
committee of the bondholders, who organized the
present company September 90 1873. Under the
plan of reorganization the capital stock Of the COM
IA kl.oa NJ onfb
lied by the original charter. 1t was divided, how
ever into preferred and common stock the pre-
ferred being fixed at $51 ,OO0, 900 and the common
at $40 600, 900. The preferred stock was created
to retire the principal and interest due to July J.,
1873, of the outstanding bonds; the
principal and interest to January /, 1875
of the land warrant bonds, aud TO pay
the floating debt not protected by the orders
of the Court. Tho preferred stock was entitled to
dividends not exceeding 8 per cent year before
any dividends should be paid on the common stock.
The preferred stock was convertible at par into any
lands belonging to the company east of the Missouri
River in the State of Minnesota, and in the Terri.
tory of Dakota. Such conversion, it was agreed,
should be an extinguishment of the stock. The
holders If the common stock were not entitled TO
vote on il until after July 1, 1873, and were only
entitled to dividends in each year. at the discretion
of the directors, when the net earnings should ex-
ceed an amount sufficient to pay interest and sink
ing fund on the mortgage debt and per cent divi-
dend-on the preferred stock. The plan of reorgan-
lzaton then provides that certificates OF this stock
shall be issued to holders Of or TO those entitled
TO- certificates share for share; and the residue
ratably to those originally entitled thereto or their
assigns"
residue OF the common stock held IN the treasury
was about 1926 100000 1t is said that the reason
if was not then issued that 1t was thought im-
IN the full amount oil stock authorized
when so little or the railroad was built. There was
an understanding between the directors and the
proprietors of this stock that it sh0nld be issued
from time to time as the road was completed and
accepted in sections of twenty-five miles. Such
issues have been rlade since the nnt
the residue had been reduced below $1S 00O 000 The
proprietary rights TO this uniSsued stock have been
dealt IN somewhat. and recently have been sold at
about 20 to % t is said hy oiheerso OF the company
that so long as there great difference between
the price of the privileges and that of the stock the
persous entitled to receive it were content with the
policy of the company IN issuing the stock only on the
completion of twenty-five mile sections OF the road.
But since the large advance in tire prics OF Northern
Pacific stocks these persons have become moro and
more urgent to secure the stock nsei and the large
differences between the price OF the privileges and
that of the stock.
Ashbel H. Barney. director of the company, who
was also member OF the Board in the Jay Cooke
DAYS said last evening: There was no good rea-
son Why the persons entitled 10 this stock should
not receive it.. | have always advocated the issue
of the stock, although have been member OF the
present Board only since the last election The
stock belonged under the terms of reorganization to-
certain persons. and to no Others There was no
Justice in withholding their stock when they could
get for their rights not more than ~ or 70 wnile
others were getting for their Issued stock
about 90 The o1al %ere SeOryng them Of the
chance to realize large profit on what was their
own property The only objection to the issue was
fhe completion of the road. That was the objection
TO The issue at the time of the reorganization, when
think it should have been made; ana That mas mas