St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-09-24
For the Growing Demands Of
the Northern Pacific
Railroad.
It's Wants Set Forth in a
Financial Circular to
Stockholders.
Brighter Times Will Put a
New Face on Manitoba
Finances.
Hill Reelected and Donald
Smith Succeeds Maxwell
Local Ballast.

The address of the Northern Pacific
directors to the preferred stockholders,
adopted at the directors meeting last
Thursday, says among other things.
that in the opinion of the directors the
time has come to make new financial
provision for the growing needs Of the
company. The gross earnings of the
road during the fiscal year 16S6-S7 were
S12, 7S9. AS: in 1SSS-S9 they were S15.S46,-
327; and in 1SSS-e9 they were S19,707,-
467.
A further corresponding increase may
be expected in the present fiscal year,
which will bring the gross earnings up
to 100000 or S24,000,000. But the
company could not in the past.
and will not in future be able
to take full advantage of the
suspicious situation without further
large investments of capital. Additional
rolling stock. improved facilities at the
Eastern and Western termini, additional
tracks and numerous other additions
and improvements are absolutely neces-
sary to the continued prosperity Of the
system. During the past two years the
company has purchased, as absolutely
necessary, $1,000, 900 of motive power
and equipment. and improvements. per-
manent and otherwise, for the year
amounted to 81, $50, 900. The increase of
terminal traffic at Tacoma calls for the
enlargement of facilities at that point.
The company must also be prepared to
build feeders wherever the local devel-
opment warrants the same, or the
danger of hostile occupancy becomes
apparent. As regards branch roads
it seems possible to effect at once con-
siderable saving in fixed charges by the
substitution of the proposed c)nSOllda
ted bonds. Meanwhile. by concurrent
action OH the part of the Oregon d
Transcontinental company, So, 567, 200 of
the branch road bonds, for the interest
and sinking funds of which the Worth
ern Pacific is responsible, can be re-
deemed at short notice, and bonds at
lower rate of interest, and without sink
ing funds, be substituted therefor. The
circular continues with expressions of
assurance that the new bonds can soon
be exchanged on favorable terms to the
company for all outstanding branch
bonds that are or will he subject to call
for the sinking funds. These in the ag
gregate amount to STATS, 900, involving
the call of S74, $50 per year, or, Including
the amount payable into the sink
ing funds of the Oregon q Transcontl-
mental branch roads, the sum of Sl75,
410. The sum of 1925, 900 must be paid
yearly for nine years for equipmen
for which the railroad company has
made contracts. 1t will be seen, there
fore, that under the proposed plan, at
at least the sum of S600,410 equal to
Clio per cent on the outstanding pre-
ferred stock, can be made available
yearly for division among the preferred
stockholders as soon as these financial
arrangements can be made. 1t is pro-
posed that the consolidated mortgages
shall provide for the issue of bonds at
less rates of interest than per cent, so
that whenever the credit of the COM
pany and the condition of the money
market will permit the favorable nego-
tiation of bonds at the lower rates it
may be done.
A resolution is appended that in the
judgment of the directors the 100000
600 consolidated mortgage should be
issued, the bonds not to bear an interest
exceeding per cent, every bond to be
authorized by a vote of nine directors.
The Oregon Il Transcontinental has
also settled its claim of 100000 against
the Northern Pacific, which had pre-
viouSly set up a connter-claim of $780,,
600. 1t is understood that the miSun-
derStanding was arranged at the Sug
gestion of Mr.. Willard, who volunteered
to exchange receipts and thus end all
further disputes.
the annual meeting of the Northern
Pacific will be held on Oct. II in New
York city.