New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-08-22
RAILROAD INTERESTS.
A CONSOLIDATED MORTGAGE.
NORTHERN PAcIFrCs INDEBTEDNESS.
DIRECTORS APPROVE PLAN FOR REFUNDING-
ONLY SMALL ISSUE OF NEW BONDS
NOW PROPOSED CARRYING OUT
NM

NOW PROPOSED CARRYING OUT
THE OREGON DEAL.
The board OF directors of the Northern Pacific Rail-
road Company yesterday voted In favor OF plan Tor
tho creation OF a consolidated mortgage not 10 exceed
s1cO 900 OOO the bonds 20 bear interest at rate not
mors than per cent per annum. In wall street une
plan Is generally spoken Of as Henry Vards, and us
ultimate object Is said TO be tho efundng OF the com
nany's obligations at lower rate OF interest than now
is paid How far in IT'S present shape It may resemble
Mr. Wizards original proposition could not be learned,
AZ ONLY the outlines OF that proposition were ever
given TO the public For the present the scheme does
not appear contemplate more than the raising of
moderate sum of money by the issue OF bonds whose
negotiation will afford excellent test OF the credit
Of the Northern Pacific Company. Coupled with II,
however Is a promise held out TO patient preferred
stockholders of a dividend at an early date In the
winter.
The meeting was declared 10 be harmonious and
the vote was unanimous Eight members OF the
board pre- sen the absent ones being Charles b..
wright j. L. Brookman John C. Bullitt, Charles H..
Colby and Frederick Billings. There was said 10 De
no significance I'm any Of the absences
Tho general features OF the disposition proposed OF
the new consolidated bonds arr Reservation of about
$3.50 600 for future rcfundlng TRANSACTIONS ieser
walton Of 10000 900 for future needs IN building
branch lines and early application Of S20OOOOOO for
tho pressing needs Of the company. These latter
include the cancellation OF 1000 bonds of tho
oregon and Transconnental Company, for which the
Northern Pacific is virtually liable and which would
have TO be wiped out 70 facilitate harmonious
Liquidation Of the Oregon concern.
II Is also necessary TO provide for floating debt or
80 100000 TO 100000 and to furnish terminal
improvements az Tacoma, equipment, physical
Improvement OF the road, etc The exact amount that
it IS hoped can be negotiated at early date Is UNI
determined. a prominent director Of the Northern
Pacific estimated It at from $40 900 to S15 600 00o
the general street figures being from $l5,OOO,OOO to
for the sale of these bonds. The preferred stock
holders will DO called TO meet October II TO ray
the action of the directors. Tho date Is about one
month after the annual election Of the company.
As a security against any improvident ISSUE OF the
new bonds the approval of nine out OF thirteen dl-
rec tors will required for any issue. As an induce
mcnt to tn. preferred stockholders pledge was given
that hereafter earnings expenses shall 60 out In
dividends necessary improvements being provMed by
the new bonds. ... - -, -,
Prosper W. smith, brother Of Elijah Smith, who
fought unslccessfly against the Willard interest for
the control OF Oregon 1ransconnenta last June, mas
resigned from the directory of the oregon Halfway ana
Navigation Company. Union Paclhc man VIII HI
his place This Is in accordance with the compromise
reached the election and the subsequent develop,
mentS Mr.. Smith will also surrender the other seat
in the Oregon Navigation board pledged TO him at maj
time. The Union Pacific. acting through the oregon
short Line, the lessee OF the Navigation company, mas
accepted 10000 shares of Navigation stock al 30 ana
the stock has been placed with trust company pend
ing The issue Of collateral trust bond to cover IT,
The remaining 10000 shares OF Navigation stock held
hy the Oregon Transconinental Company VIII go TO
the Union Pacific and the Manitoba road ater III ac-
corlance with the Portland Ore, compromise