New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-04-21
NORTHERN PACIFIC PLANS.
THE IVES SYNDICATE IGNORED.
DIRECTORS ADOPT SCHEME. BUT WITHHOLD
DI,r.Ir G. croc1uoInEpS 70 EIGHT

Observation-Disclosures TO FIGHT.
The meeting OF the board Of directors OF the
Northern Pacific Railroad yesterday may mark a
turning point In the affairs OF the company The
plan for funding the floating debt prepared by the
stockholders interest. led by Brayton Ives president
Of the Western National Bank. ignored and a new
plan was formulated by the management, thereby
indicating Henry Willard intention TO remain as the
dominating financial officer. That ibis action will
lead TO vigorous warfare against the Present board
there is little doubt Ia the opinion Of the opposition
stockholders. They dcnounce the rejection OF tie
Ives scheme misfortune to the Stockholders and
already discussion Is under way to the stcps
needed TO he taken 10 effect radical change in the
control of the property. II is not improbable that
large creditor interest will ally itself 70 the move
mcnt.
The officers Of The Northern Pacific were rcicont
when asked for Information respecting the meeting
The only attanablr information was embodied IN
the following statement. given out "cfHcia":
At meeting of the Noith@n Pacific Poard to-day a
plan for funding the floating dcbt prc,eatcd the
Finance Committee and practically adopted. This plan
will be presented to the public early date.
1t will provide for all the oomponys liabilities and
at the proper time the stockholders and friends OF the
company will have opportunity to participate.
ANY person persons not officers OF this company who
solicited subscriptions fund for the purchase
Northern Pacific so-calcd collateral certificates
acted on their responsibility and withou: any
authority or sanction OF the company.
Those persons who familiar with tho work done
bv Mr. Ives in securing pledges 10 the proposed under
writing syndicate were indignant well amused
at the last paragraph in the official statement. The
letter addressed by Mr.. Ives President Cakes. OF
the Northern Pacific. dated April Is. follows
Referring 10 my letter you OF March Is peg 20
say that the financial plan therein referred TO contmpacs
oe creation o: collateral trust in w8ch shall DC placed
$40 900 900 Northern Pacific Consolidated vcs 5000
Chicago and Northern Pacific nrsts. and all OF the st,
Paul and Northern Pacific stock belonging the North
Pacific Company. estimated at 100000. Against
these securities is suggested that the extent Of
900 be issued bearing Ter interest. and
PAYABLE in Eve years before at the pleasure Ct the
company provision being made at the time for the
Of the emount OF the notes 10 $4,000 900 the
deposit Of additional collateral security satisfactory
the underwriters
happy TO be able TO repeat the belief already
pressed that II the board OF directors will allow the
derwriters to directors O: tho company
entire amount Of notes Will he subscribed for without de-
lay In justification OF this belief leg 10 inform you
that responsible parties have already signed agreement
70 take under the foregoing terms 100000 OF such
notes az % per cent. less commission OF IL cent
Should this proposition be accepted by the board am
convinced that for the remaining amount
be easily obtained 1t is only just To all concerned that
decision should be reached without further delay and as
te board has had opportunity Of considering the
posed plan for than month respectfully ask that
action may be taken at its next meeting which under
stand. is to be held the Goth inst.
The funding plan proposed by Mr. Ives offered
terms materially better 10 the company than those
of the original plan Of the directors. involving the
sale Of the st. Paul and Northern Pacific stock
held in the treasury. which withdrawn Under
the pressure Of the opposition OF Northern Pacific
stockholders. 1t is understood that among the sub
scribers to the syndicate which agreed 10 underwrc
the Ives funding plan were the Mercantile Trust
Uompany. the Equitable Life Assurance Society.
Kuhn, Loeb a. Co.. August Belmont d Co.. J. d.
W. seigman & Co.. Win>low. Lanler d Co., Yer
70 llroS Sarp IT.
Hatch & Sons. Henry Clews & Co.. Hartley Graham.
John Jacob Astor John f. Searles, jr. and Johnston
Livingston. Of New-YoVk: the estate OF Frederick
Billings and the Provident Life and Trust Company
ofd such SYNDICATE Is obvious and the NcwY9rE
name, large. prop ion OF the b,nkin.,
syndicate financial operations Of magnltude. The
sk Of securing pledge n from n ess nS pa l
and anxiety was no ligh, one. Many stoekloldcrs
s" a a' ives 'Ss w So caS a Rejected
1t is known that more than one member OF the |
Ives syndicate has declared that The present man man
cial aid iron, it. Friends of the stockholders, |
feel Vim eq prSav assume h sl yau4
should this b. true, Mr. Willard in refusing TO retire
M a ind ar PARA pr' o %a Pm
t.restS aa.c fer the execution oil the iundlHH
p: The CONDITION ito of financial Affairs daily spdes
more difficult for corporations 70 initiate new ncs
statements of weliinfcrmed persons may be accepted
is financial position is less favorable than /, was a
lew months ago 1t is said on high authority that
since the early part Of the year the floating debt has
,een largely increased on January "a the amount h
was 100000. since then the floating DEBT mas |
crown BY about 900. SO that It now amounts TO |
nearly S1O.COOOO0. On little over So.OoO,ooO OF |
his amount the company. according 10 the report oi
he investigating committee OF stockholders. Is paying
per cent interest and a commission OF per cent
IN what terms the new loan made Is not known |
Il Is also stated by persons who should be well |
Informed that since December 81. 1892 the o surplus
u the company has been decreased over $1,OOOOoo
ID is understood that Of the floating debt Kuhn
ooh A. Co are CARRYING about $1,000 ,0OO and Speyer
{ Co about 80, 100000 Part Of the floating DEBT Is
iue on July /. and a large portion natures next sep
interest represented by Kuhn Loeb IL Co.. VIII JOIN |
he stockholders in any effort that may be maze 10 |
,yerturn the Willard control