St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-05-19
He RESIGNED ONCE,
Henry Willard Wished to Re-
tire From the Northern
Pacific March 1.
President Cakes, However,
Prevailed Upon Him to
Reconsider.
Details Of the Proposed Issue
Of the Collateral Trust
Notes.
Lower Worlds Fair Rates
Will Undoubtedly Be Es-
tablished.

New YORK, May 18.-The board of
directors of the Northern Pacific rail-
way were in session all day today, but
they did not finish the work before the
meeting and adjourned until tomorrow
at IL o'clock. They had under consider
alton the plan for an issue of collateral
trust notes to be used in eXtinguishing
the floating debt of the company
amounting to S10,000,000. President
Thomas f. Oakes said:
"The plan for issue is all settled on;
we have been at work on the details.
The unauthorized issue is to be Sl5,000,-
900, bearing 6 per cent interest, and re-
deemable in five years, or earlier, at the
option of the company. Only Sl2,000,000
is to be offered at present. The resig-
nation of Henry Willard as chairman of
the board of directors was not under
consideration"
Previous to the session Henry Willard
authorized the publication of the fol-
lowing statement in regard to his retire
ment from the chairmanship, as we'll as
from membership in the board:
Persuaded to Stick.
On March l, 1898, Immediately after
the publication of the reply to the
Northern Pacific directors to the report
Of the committee of stockholders in ac-
cOrdance with a long enter tanned inten-
ton, he addressed to President OakeS a
formal letter of resignation from the
board. The letter was also accom-
panied by a personal letter, in
which he fully explained his reasons
for the step. The reasons for the step
are in consequence not given. PreSl-
dent OakeS, in letter of reply, which
was strictly personal, while he recog-
nized the force of Mr.. Wizards reasons
for resigning, urged him to Withdraw
his resignation, explaining that the com
pany urgently needed his assist
ance in funding the floating debt.
with the qualification that under no cir
cumstances could he serve longer than
the end of October next, when his pres
ent term of three years will have eX-
pired. 1t is understood by Mr.Villard's
friends that he will under no circum
stances accept reelection at the an
nual meeting of the stockholders of the
North American company. but that he
will continue to be largely Interested as
a stockholder, and had declared he
would obtain for it, If desired. such
financial aid as it required.
In regard to his resignation Mr..
Willard said:
Has Not Resigned.
81 wish it distinctly understood that l
have not resigned from the directory of
the Northern Pacific and do not intend
to until it suits my convenience.
Neither was my resignation considered
at this meeting and it will not be con-
sidered at this meeting. No action has
ever been taken on my letter of March
49,"
The plan approved provides for an
unauthorized issue of S15,000,000 col
lateral trust notes, to bear per cent in
terest and to mature in five years. The
Farmers Loan and Trust company will
be trustee. The security back Of the
notes will be the consolidated bonds
and other assets now pledged for the
floating debt, and i'll addition the
st. Paul u Northern Pacific stock
in the company's treasury and
the Northern Pacific Express company's
franchises. 1t is the intention of the
management 10 Issue only SIH,UOU,UUU
notes at present. The price at which
they will be offered for subscription is
generally expected to be about 90. Mr.
Willard said that the subscription list
to the underwriting syndicate had
not yet been completed, but
he had no doubt that it
would be successfully organized.
He said that there was plenty of time to
complete the work. as the debt did not
mature until Sept. l. Asked if Spever
& Co. and Kuhn, Loeb Il Co. had agreed
to fund their advances, he replied that
these firms had not yet been approached.
The firms of Kuhn, Loeb d Co., Spever
& Co.. of this city, and Stern Bros, of
Frankfort, and the Deutsche Bank of
Berlin are understood to hold about
S6.00O,OO0 of the floating debt of the
Northern Pacific. 1t is not known
whether these concerns will consent to
extend their advances by accepting the
proposed collateral trust notes. 1t is
considered doubtful that Kuhn, Loeb &
Co., who control about $4,000 will
make the ext ension. The attitude of
Spever e Co. is understood to be unde-
termined as vet.