New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-02-09
PROSPECTUS OF A BIG LAND COMPANY.
SPECIAL TERMS OFFERED TO NORTHERN PA

CIFIC STOCKHOLDERS.
stockholders Of the Northern Pacific Railroad Com
pany received yesterday neatly printed prospectus
Of the Minnesota and Dakota Land and Investment
Company, Of which Brayton, Ives Co., NO. Broad
St. arc the fiscal agonts Tho Northern Pacific stock
holders win be permitted at any time before April
I TO subscribe to the dobentre bonds Of the land
company % and accrued interest from January 1,
and an equal amount OF stock VIII be given to them.
Other subscribers will not be entitled TO the same
rights unless they take at least $4,000 Of tho bonds
The land company organized in 1885, under
the laws Of Minnesota, with authorized capital OF
A 900 Ooo 1t has q contract with the Northern
Pacific Railroad for the purchase Of 1e5OooO acres
NJ land east OF the Missouri River. The contract
price Is So acre, payable in Northern Pacific pre-
fcrrod stock at par. Something more than oo'ooo
acres have been selected and paid for The terms Oh
purchase by the company are as follows; Inc Ianu
company can pay for 900 acres on the nrst days
Of January and July of each year until all shall have
boon paid for; can pay for greater portion VT
for the whole any time, or It can cease payments
AZ any nms without penalty or impairment OF its
titles TO lands already paid for.
In thin meanwhile the railroad company agrees 10
sell these lands as the agent Of the land company de
dncting 81 an aero for expenses and commissions
The lowest price according to the schedule OK the
railroad company is "a acre, and the credits under
the contract already amount TO about SlOoooO' Inc
average price received by the railroad company ior
,,s Dakota lands has been according TO its Reports In
IN. last four years. 81 20 acre payable OF course
IN The rreterred stock At the present market price
% ~. stock the cash valuation Of the lands acquired
h On. land company would be nearly So'OOo,OOo'
nm N, entire amount needed to pay for them
,vorld h. something less than 100000 Inc pros
.o,,ya nroat Is so large that the offer to the stock
ho,ao ~ the Northern Pacific Is made TO silence any
,,,a,,on that the railroad company has encouragcd
the formation Of parasite organization
7. A, understood at the same time mat IL he
.ohhoders OF the railroad company do not SUBSCRIBE
Cor the bonds of the land company syndicate 10
- % ,ahs tho whole Issue. IL is asserted Dy the
al orcnts that the bonds are inherently sound
hooanso they are based on lands at a. price when
q, only about Onethird OF that received tor slmia'
lords IN the last four years. IL is arsueu 'ns' '
stock has a prospective value whoh IL % impos''D
~ estimate accurately, because the Vaiue Oh uo
,ands as well as that OF the preferred STOCK VI N
.~r-, ooupsnv. enters into the computation IL
the railroad stock should appreciate aver ~ a.
aau,.anv had bought the full amount required the
,lDl uou,d add to the assets Of tho land com
80 49,. q, tho railroad stock should decline through
-..,,,or or msmanagement the land company
, y. ohl. 70 convert it into valuable lands .. al
a,,uond nrce While competitive railroad Du"uis
-. hurt tbs Northern Pacific Rallroan' " ""uA~
probably help the land company a..
,rr. Mercantile Trust Company has been maoo 'he
-. % tho debeuturo bonds and the nscal @gen'S
% .,, ,hor. 10 per cent Of the proceeds OF tne
VIZ sa n,rd for tho payment Of coupons Tor s"'
Nv the agreement with the trustee, moreo o.yss
three fourfhs Of the net proCee 70 the redemption
~ at0 the bonds at 100 and interest, ana ono-i'
The nayment of dividends on stocR.