New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-10-04
GOING THE LONG WAY AROUND.
TO PAY THEMSELVES SIX PER CENT
THE MANITOBA ROAD TO BE OPERATED BY A
NEW COMPANY, THE GREAT NORTHERN.

THE MANITOBA ROAD TO BE OPERATED BY A
NEW COMPANY, THE GREAT NORTHERN
RAILWAY
The Great Northern Railway IS the apotheosis OF tho
St. Paul. Minneapolis and Manitoba Railway Company.
The mysterious WnsDrs about important railroad
dea- in the far Northwest that have been circulated
In Wall Street recently assumed shape yesterday In
the publication Of address TO the stockholders Of
the Manitoba company. In this circular letter 1t Is
argued length that the extension Of the
system and the rapid growth of the West have made
it indispensable to provhe for larger development of
the company's business. 1t is rectcd that a large
part OF the extensions, under the auspices Of the COM
pany, has been made by other corporations and that
stocks bonds of these corporations to the OF
800 900 600 held in the company's treasury
A committee of stockholders, consisting of Frederick
r. Olcott, Walter Watson, Joseph T. Brown. John G.
Moore and J. Kennedy Tod appointed TO examine the
securities and consider the plan proposed by the di-
rectors, reported favoraby at the annual meeting, and
the stockholders unanimously adopted the report
They received yesterday the following general outline
of the plan which they had formally approved:
Fiist-The Great Northern Railway Company IS a
corporation organized under the laws of Minnesota,
with ample power for all the purposes mentioned inc
control Of which has been secured for the benefit of
the stockholders OF This company. IL WI nave az
authorized capital of S40,0O0O00 Of which one-half
will be preferred stocL, entitled to dividends, IN
preference to all other stock AZ the rate OF per cent
per annum, nOn-cumulatiye and FREQ OF taxes As no
addition can be made to this preferred stock without
the consent Of three quarters OF all TIE preferred Stock
outstanding It's holders will be amply secured against
common stock will be retained by the Great Northern
Railway Company, subject to future disposition for It's
benefit.
Second-The entire $50 600 600 of preferred stock in
the Great Northern Railway Company is offered
10 inc stockholders of this company OF record on the
10Th day of November 1889 each stakeholder having
the privilege OF taking share OF Great Northern
preferred stock for each share OF Manitoba stock held
Thrd-Ths preferred stock will be Issued at par; ;
put the stockholders Of this company will only be re
qulred to pay $50 Per share in CASH the other $50
being paid by the transfer the company of tho
assets already mentioned exceeding 81 100000, but
subject TO the lien of the collateral truss mortgage
for $a000,000. Stockholders Will be allowed until
the 9th day of November, 1850, within which to
exercise their option to take this preferred stock or
not and meantime they assign their rights to
subscribe, If they so desire in the manner prescribed
by this company. shares of the Great Northern pre-
fcrrcd stock which not taken by stockholders of
this company, or their assigns. within the period here
assigns, upon the same terms; and if taken by tho
company. they VIII be disposed Of by the directors as
they may deem expedent.
Eighth--The St. Paul, Minneapolis ard Manitoba
have been complied with. execute lease of all the
railways, rolling stock and eqrpmcnt, owned leased
Company, for term of not less than ninety nine
years. in Consideration of rental which the Great
Northern Railway Company agrees TO pay, sufficient
to provide for guaranteed dividends upon the entire
capiua stock Of the Manitoba Railway Company
the rate Of SIX Ier cent per annum free Of taxes.
In quarterly instamens, the first days of February,
May, August and November in each year, together
with all taxes, assessments, interest bonds and
other current obligations OF the Manitoba Company,
of every kind: the Great Northern Railway Company
guaranteeing all he obligations of the Manitoba Com
pany, and indemnityng IT against all liabilities
1t suggested in Wall Street that the formation
Of company, called in most cases operating
company, not novelty In railroad financerlng
The stockholders Of the Manitoba Company under the
style Of the Great Northern Railway, agree in effect
to pay themselves per cent dividends The inquiry
that was raised why 1t necessary to change
the to reach this result.