St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-08-22
VILLARD'S SCHEME.
"A Vote in Favor of III is Plan by the
Directors.

NEW YORK, Aug. 22.-The board of
directors of the Northern Pacific
Railroad company yesterday voted
+ in favor of a plan for the
creation of consolidated mortgage not
to exceed Sl60, 100000, the bonds to bear
interest at a rate not more than 5 per
cent per annum. In Wall street
the plan is generally spoken
ultimate object is said to be the refund
lower rate of interest than now is paid.
How far, IN its present shape, it
may resemble Mr.. Wizards original
proposition could not be learned,
as only the outlines of that proposition
were ever given to the public. For the
present the scheme does not appear to
contemplate more than the raising of a
moderate sum of money by the issue of
bonds whose negotiation will afford an
excellent
TEST OF THE CREDIT
of the Northern Pacific company.
Coupled with it, however, is a promise
held out to patient preferred StOckhOld-
ers of a dividend at an early date
in the winter. The meeting was de
clared to be harmonious, and the
vote was unanimous. Eight members of
the board were present, the absent ones
being Charles B. Wright, J. u. Brook
man, John G. Bulltt, Charles l..
Colby and Frederick Billings.
There was said to be no sig
nificance in any of the absences.
The general features of the disposition
proposed of the new consolidated bonds
are: Reservation of about $780,
mn 00n for ft,t r1ra rQfInHInp
transactions; reservation of $780,,
100000 for future needs in building
branch lines and early application of
S2O.00O,000 for the pressing needs of the
company. These latter include the
cancellation of S10,000,000 bonds of
the Oregon & Transcontinental COM
pany. for which the Northern Pacific
is virtually liable and which would have
to be wiped out to facilitate harmo-
NOUS liquidation of the Oregon concern.
1t is also necessary to provide for a
floating debt of 100000 to S.
100000 and to furnish terminal
improvements at Tacoma, new equip
ment, physical improvement of the
road, etc. The exact amount that it is
hoped can be negotiated at an early date
is undetermined. A prominent direc-
tor of the Northern Pacific estimated it
at from $10,000,000 to S15,000,000, the
general street figures being from S15,-
100000 to s20,000,000. No arrangements
have yet been made for the sale OF these
bonds. The preferred stockholders will
be called to meet on Oct. II to ratify the
ACTION OF THE DIRECTORS.
The date is about one month after the
annual election of the company. AS
security against any improvident issue
of the new bonds the approval of
nine out of thirteen directors
will be required for any is
sue. As an inducement to the
preferred stockholders, pledge was
given that hereafter earnings over eX-
penses shall go out in dividends, neceS-
sary improvements being provided by
the new bonds. Prosper W. Smith,
brother of Elijah Smith. who fought
unSucceSSfully against the Willard in
terest for the control of Oregon Trans
continental last June, has resigned
from the directory of the Oregon Rail
way and Navigation company. A Union
Pacific man will fill his place. This
is in accordance with compromise
reached at the election, and the subse-
quent developments. Mr.. Smith will
also surrender the other seat in the
Oregon Navigation board pledged to him
dG ludt tlIiie. Lie u HUI dCluCs dCbillS
through the Oregon Short Line, the
lessee of the Navigation company, has
accepted 10000 shares of Navigation
stock at 80, and the stock bias
been placed with trust company
pending the issue of a collateral trust
bond to cover it. The remaining $4,000
shares of Navigation stock held by the
Oregon Transcontinental company will
go to the Union Pacific and the Mani
toba road later in accordance with the
Portland, Or, compromise.