The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1889-08-22
NEW BONDS CARRY
Henry Wizards Scheme for Consoli-
dating Northern Pacific Mortg-
ages Approved.
The Matter to be Submitted to the
Preferred Stockholders in Octo-
Der for Final Action.
Twenty Millions 10 be spent In Improve
ments on the Main Line and at
Terminal Points.

NEW YORK, Aug. 21.-The board Of dt
rectors OF the Northern Pacific railroad
has unanimously passed q resolution to
submit the financial plan devised by Henry
Willard, as chairman of the inancelcom-
mlttee, TO q vote of the preferred stock
holders. The salient points of Wizards
plan are q consolidated mortgage of $3.50,
900. 900, which is TO be used for the retire
ment Of the outstanding first, second and
third mortgage bonds and other securities
guaranteed by the Northern Pacific
railroad company, and which is
also to be applied to the financial needs,
present and future, of the company. IL is
not Intended to issue st present more than
SIS, 900, coo of the consolidated mortgage
indispensable improvements, enlargement
of terminal localities, permanent better
ments and improvements on the main line.
The Tribune this morning prints the
following: The board OF directors of the
Northern Pacific railway company yester-
day voted in favor a plan for the erea-
ton OF a consolidated mortgage, not TO ex-
ceed Sl60, 900 900, the bonds 10 bear interest
at the rate of not more than per cent. per
annum. In Wall street the plan is gener-
ally spoken of as Henry Wizards and it's
ultimate object Is said to be the refunding
of the company's obligations at lower
rate of interest than is now paid. How far
in its present shape it may resemble VII
lArd's 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 ap-
pear TO contemplate more than the raising
of moderate sum of money by the issue
OF bonds, whose negotiations will afford
an excellent test of the credit of the North
ern Pacific company. Coupled with II,
however, is the promise held out TO the
patient preferred stockholders of a divi-
dend at an early date in the winter.
The meeting was declared 10 be harmoni-
Ons, and the vote was unanimous. Eight
members of the board were present, the at
sent ones being Charles l.. Wilson, j. u.
Colby, j. q. Bullitt, Charles Colby and
Frederick Billings. There WAS said TO be
no significance in any of the absences.
The general features of the disposition OF
the proposed new consolidation bonds are:
A reservation Of about S6l, 200, 900 for fu-
ture refunding transactions, reservation
of $50, ,OOO, 200 for future needs in building
branch lines. and the early application OF
$50. 10000 for the pressing needs of the
company. These latter includes the can
csiIation of $40, 600 900 bonds of the Oregon
& Transcontinental Company. for which
the Northern Pacific is virtually liable, and
which would have 10 be wiped out to IA
cilitaIe the harmonious liquidation of the
Oregon concern. IL IS also necessary TO
provide for a floating debt OF $1,000 900 to
SO. 000. 900 and 70 furnish terminal improve
menIs at Tacoma, new equipment and
physical improvement of the road.
The exact amount that is hoped can be
negotiated at an early date is undetermined.
A prominent director of the Northern Pa
cific estimated il at from SIC. 200. 600 to S15-
0O0, 900. the general street figures being
from SIS, 100000 to $50 100000. No ar
rangements have yet been made for the
sale of these bonds. The preferred stock
holders will be called 10 meet Oct. IL 10
ratify the action of the directors. The
date is about one month after the annual
election of the company. As security
against aDyFany improvident issue of bonds
the approval of nine of the thirteen direc-
tors will be required for any issue. AS an
inducement To preferred stockholders a
pledge was given that hereafter the earn
dends, necessary improvements being pro-
vided by new bonds.
Prosper w. Smith, a brother of Elijah
Smith, who fought unsuccessfully against
Willard for the control of the Oregon
Transcontinental last June, has resigned
from the directory of the Oregon Railway
Il Navigation Co., scd a Union Pacific man
will fill his place This is in accordance
with the compromise reached at the cleo
other seat in the Oregon Navigation board,
pledged to him at that time. The
Oregon Short Line, the lessee of
the Navigation company has acceptedpart
of the Navigation stock at ninety and the
stock has been placed with a trust COM
pany pending the issue of q collateral trust
bond to cover il The remaining shares of
Navigation stock held by the Oregon
TranscOntinental company will 20 the
Union Pacific and Manitoba roads, the lat
ter in accordance with the Portland, Ore,
cOmprOmisp.