New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-10-21
TO TIE UP N. p. BONDS.
ACTION OF PREFERRED STOCKHOLDERS.
SOME ANGRY ONES USE HARD WORDS TOWARD
Mr.. vILLARD-A COMMITTEE OF IN


Mr.. vILLARD-A COMMITTEE OF IN
VESTIGATIoN APPOINTED.
The annual meeting of the stockholders OF the
Northern Pacific Railroad Company. in the Mills Build
Ing yesterday. had directors to elect the board
IS now classified and none rctrcs until next year.
But the preferred stockholders disposed of the question
Of the consolidated bonds set aside for their benefit
and the meeting was enivened by the presence Of sew
eral dissenting stockholders who had some vigorous
remarks concerning the alleged Acknowledgement
OF the company, and who made Henry Wizard, the
chairman pass a few uncomfortable hours. A com
mittse investigation finally appointed and the
meeting ended in milder mood than that In which 1t
0egan.
There were about thirty five stockholders present
Mr. Willard, as chairman of the board OF directors,
presided and announced that the meeting was organ
lied as meeting OF preferred stockholders To act upon
q proposition which had been submitted by nuiner-
ous stockholders for the disposition Of the S334'o
consolidated bonds held in trust for the preferred
stockholders Immediately opposition was developed
10 the PLAN which conemplates the WING up OF the
bonds, except as they be sold ut 30 from time 10
time. tb make up the difference between what divi
dends the company pay out of earnings and per
cent per annum on the preferred STOCK. one STOCK
holder wanted 10 know why the bonds had not been
distributed and Mr. Willard replied that the directors
had NO discretion The disposition OF the bonds rested
with the stockholders.
Joseph Morette, New-York stochholder, said This
proposition will not hold in court. am an owner OF
40 shares of preferred stock. You can't tie up my
property and that fact will be shown on an appear 10
tho courts IL there are any directors this resolution
7 am also a second mortgage bondholder. gave UP
NV rights to the preferred stock. Then we gave up
our lands the Rocky Mountains Tor lands east o
e. We have been giving up everything. Then We ap
proyed this consolidated mortgage on promise 'hat
the accounts would be settled WIN 'ie Pcioituu
stockholders and now we can't get our bonds. NO
preferred stakeholder vote away my properly
and Mr.. Morette banged his fist enl'haucaiN oii .'
directors table in the middle OF the rooi"' VA.
Willard replied that the directors had nothing TO do
with the bonds the stockholders alone couu ao''
this action revocable 2" was asked
"That is a point that l have not consulted any
lawyers about Mr.. Willard responded
Then George J. Vandegrift. Philadelphia stock
holder, took the floor in polligerent attitude iou
have announced the amount of stock owned oy ea'h
~ tho sisners Of this proposition he cried; but
7 notice that nothing is said about the amount Oh
stock that the chairman holds. From what nav
read In print don't doubt that am heavier s'ooA
holder than he Is. This meeting has Dceh p''h'"
In favor Of this resolution just belore i'i' iH'i"
dslphia some OF my friends Told me that they h'u
received no proxies to be used I'm this meeting
chairman Willard looking trihe ruffed, replied that
proxies had been sent to all stoclSloder'' w.
they weren't cried Mr. Vandesrift "Ihe man
agement hasn't treated us fair ana square A"'
meetings packed"
Mr. Vandegrift then sat down, but he kept up al
,ccssonal boubardment of the directors as the pro
ceednrs went on. An amendment was offered 10
the resolution before the meeting proNuihs iol
pro-ratas immediate distribution OF the bonds' Inc
vote WIS taken amid some confusion. but the aheno
,ment was lost by vote OF 1878 shares agihnS'
3O74 shares The original resolution was then car
ried by vote Of 100 go shares against 400 shares
Nearly two hours had been consumed IN this wrah'
de and a fresh was started by Mt. Naiuesin'
offering a resolution FOR committee 10 investigate
the affairs Of the company and submit all 'niorha-
ton relating to the gross Acknowledgement OF 'he
property Willard declined TO read the resolution
" II Is Your duty read it," said Mr.. NandeSrllt
stridng down the room TO where Mr. Nlliaru sloou'
If you not going 10 act as Chairman we II get
another one $500
1T is not my duty to read It," replied Mr.. VII
lard calmly This Is a meeting Of preferred stock
holders and instructed to confne 1t to the ousl'
ness that was come before IT."
at Is YOUR duty insisted the rate stockholder'
.You would better leave the chair and let us elect
some one who will do his duty" Mr.. Willard man
famed his position and finally Mr.. Vandegrit read
his resolution himself. in order to AVOID luT'her
disturbance another stockhOlder moved TO lay inc
resolution on the table. and this motion preV"ncu'
The meeting was then adjourned as a specal meet
ing OF preferred stockholders and Immediately recon
yened as a Joint meeting Of common ana preferred
stockholders. The annual report was then READ by
the secretary Mr. Willard declaring that ne was VIII
ing to answer all questions. A stakeholder asked
II IL was true that the floating debt OF the company
1ras being carried at high rates of interest MI VII
lard REPLIED: "The debt originally extended on
certain terms II was renewed last August for
wear on more favorable terms ! am not at liberty
IN state the exact arrangement, but Wall say that
costs about per cent to carry the Indebtedness
what collateral put up TO secure the deotY"
was asked
Mr. Willard replied The floating debt Is carried
nv about S1OO0O,OO0 consolidated bonds"
In reply 10 further questions the treasurer, George
Baxter stated that these bonds were exclusive Oh
81. az al | 600 bonds shown I'm the balance sheet,
thev were the property Of the company and bore no
company was about Sj5,000,OO0; although Only
900 were listed on the STOCK Exchange Mf.
la TIER also said that there had been issued between
s1e OOO 900 and S21 900 900 Chicago and Northern
pac6c bonds About IL 100000 Of these bomb had
hem nv pothecated to the floating debt. thus
report TO be among the assets. some It. Paul ana
Northern Pacific stock had also been hypOthecaled,
hut All the other securities were In the treasury: -
After the reading OF the annual report Mr.. Willard
expressed qualification at the large personal az
tendance ~ stockholders. lie invited the appoint
ment of a committee TO investigate the condition and
assets OF the company and make fun public report
resolution 10 that effect was adopted ana gre 1oi-
lowing committee selected Henry Clews, BrytOn
Ives Frank X. Sturgls and william solomon, OF new
York and JAW Cooke IT.. OF Philade phia
The meeting then ADJOURNED alHr one OF lns
would not take as a personal airont anything winch
bad been said In the heat Of debate.'