The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1881-03-23
TELEGR APHIC
THE RAILROAD RACKET.
A Rig Issue of Northern Pa
cific Stock.
Ofher RnlIroad NIatlers.

Other Railroad Matters.
Chicago, 81. - Inter Oceans New
YorB: The d s,ribruon of the residue o
he c. mmon stock amounting to nearly
$50, 900 shares, which has been held il
the company's treAs-ry slice the organ.
ization IN 1875, was considered at the reg.
uiar monthly meeting OF the directors oil
the Northern Pacific last Thursday. For
personal reasons quorum of The board
cOu.d not be kept together until the next
day, and the matter Was left 10 the execu-
tive committee. On the following day
that committee voted 10 distribute the
stock and in accordance with that decis-
ion circular letters were forwarded to per-
sons entitled to receive stock. Part Of
the stock has since been Issued, and GER
tifcates are ready for delivery whenever
| they shall be called for This Issue COM
pleles the total amount of common stock
authorized by the plan Of reOrganiZ ,tion
and by the act OfincorporAiion-S49,0 600,
600. The reason for the distribution is
said by officers 10 be the anxiety of PER
sons entitled to receive it to realize the
profits at the present market value. The
chief opponent of the issue has been the
president Of the company, Fred
erick Billings, who was unwill-
ing that the stock should be
issued any faster than the road was COM
pleted and accepted by government. The
pressure brought to bear upon the board
became so great that it was decided to
make the distribution at once. The stock
belonged, under the terms Of the reor-
ganization, to the originsl proprietors,
Eut the issue was wholly ut the discretion
Of the directors. The Northern Pacific
was sold under foreclosure proceedings,
in 1875, to q purchasing committee of
bondholders, who organized the present
company under plan of reorganization.
The capital stock was fixed at the same
amount authorized by the original char
ter. 1t was divided, however, into pre-
ferred and common stock, the preferred |
being fixed at SOL 600, 600. The preferred |
was created TO relieve the principal and |
interest due TO July LIST, 1878, of ou.- |
standing bonds, the principal and interest |
up to January LIST, 1875, Of land warrant |
bonds and 10 psy the floating debt not |
protected by orders of the court. Pre-
ferred stock was entitled to dividends |
not exceeding 8 per cent. per
year, before any dividends should be
paid on the common stock. The pre-
fetred WIS convertible at par into any |
lAnds belonging 10 the company east of
The Missouri river, in Minnesota and in
The territory ofDakots. Such conversion,
il was agreed, should be on the relinquish-
nent OF the stock. Holders of common
;iock were not entitled to vote on it, I'M
III after July LIST, '7S, and were only en-
titled to dividends each year at the dis
cretion of the directors, when the net
,sFnings should exceed an amount suf-
icient to pay the interest and sinking
und on the mortgage The preferred
TO k plan provides that certificates Of
took shall be issued to holders or to
hose now entitled to certificates, share
or share, and the residue ratAbly to
heir assigns. At the time the reorgsni-
alton wss completed the residue OF COM
non stock held in the treasury was about
,26, 100000. II is said that the reason
Why it was not then Issued was that it
vas thought impoiitic to issue the full
I'M punt Of stock authorized when so
title Of the railroad was built. There
Vas an understanding between the direc-
ors and proprietors OF the stock that it
hould be issued from time TO time as the
pad wss completed, and accepted in
eetions of twenty-five miles, such as
ave been made since the organization,
lntil the residue has been reduced TO be-
ow SIS 200, 600. The proprletors' rights
o this unissued stock have been deslt in
omswhat and have recently been sold at
b ut 20 to Is, and said officers of the
ompany that so long as there was no
.reat difference between Inc price and
privileges and stock, persons entitled TO
eceive it were content with the policy of
he CON pany in issuing stock only on the
of twenty-five mile sections,
'ut since the large advance in the price
( Northern Pacific, these persons have
'ecome mote and more urgent to secure
be stock itself, and the large differences
etWeen the price Of privileges and the
took. Ashbel ii. Barnes, director Of
be company, who was also q member of
be board in Jay Cookies day, said this
vening: The only reason for making the
istfibu ion at this time is to enable per-
0ns entitled 10 the stock to take adyan-
age of the present high price. The
elton of the board was not instigated in
ny wsy by the reported control of TIE
ompany by the Willard pool. If the
lends Of the Oregon Railway and 4.
navigation Company have secured
ontrol of the stock, the distribution
f the treasury stock would be favor.
BILE to them rather than otherwise. An
ler officer expressed great doubt whether
ir. Willard and his friends had secured
ontrol, SIS they confidently claimed, and
aid there was no indication on the books s
nat the coatrol had passed from the
resent management He also said be
lought it had been q mistake to have the
too k listeG st the stock exchanges in |
lew York and Philadelphia, so long as
Ma uni-sued stock was hanging over the
la ket. The equity 10 the stock, how !
yer, belonged 10 certain parties, but the
irectoTs had absolute power of issue
yer &, 000, 600 that had been issued since
ne reorganization. Recently the clsmor
f owners to have the whole residue
sued at once has become go fierce that IT
ould not be resisted by the board. The
istribution will be favorable to the Viii
ard pool, for if we had any fears in re-
ard to the control of the company we
oud have delayed the issue till few
sys before the next election. Mr.. Vii
ard himself, however, has been the
uyer of t. proprietary privileges, and
ot little OF the stock will go directly to
i'm. don't know where the stock will
o, but do know that that on the books
bout 400 are entitled TO receive it
At the Office of Henry Willard, presi-
ent of the Oregon Railway ard Nsvigs-
ion Company, who claims to have OBJ
aimed control of the stock, It was ssid
hat the issue would not interfere with
is control OF the road. It would find its
ysy into the market.