New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-24
SELLING PLEDGED BONDS.
CLOSING OUT SOME NORTHERN PACIFIC
LOANS
ENORMOUS TRANSACTIONS AT THE STOCK EX-
CHANGE-How DOES THE COLLATERAL TRUST
NOTE PLAN sTAND'-THE ISSUE OF

CHANGE-uow DOES THE COLLATERAL TRUST
NOTE PLAN sTANDl-THE ISSUE OF
RECEIVERS CERTIFICATES.
Interest at the Stock Exchange yesterday centred
largely in the heavy liquidation in the securities of
the Northern Pacific Railroad and It's leased Chi
cago line Transactions were on an enormous scale
and were effected only at material declines IN the
price The total dealings in bonds amounted to
81 $500 face value and toward this total the sales
OF the Northern Pacific consolidated per cent bonds
contributed Sl.l5j.OCc The sales OF lineage ana
Northern Pacific hrsts amounted TO S'Z""' Inc
Northerr Pacific IS opened !. per cent lower at q
and declined steadily to 2r2 y rally 10 -o'2 ioi-
lowed the announcement that big block OF the
bonds. advertised for sale at public auction had
been withdrawn The closing was at 2J'2 net loss
Of -, per cent Chicago and Northern Pacihc hrsts
opened at 1874. against Tuesday night iei 10 "o.'
rallied to 81 and ended at 80
The general opinion In Wall Street was that the
enormous transactions in the Northern Pacific Sc
curites represented a closing out OF ioah hiaue
to the company II had been ADVERTISED that so'o'-
90 consolidated IS would be sold at auction at NO.
III broadway at Il 80 D. m yesterday, together WIN
20iO shares Of St Paul and Northern racine s'ooN'
The announcement hung like a weight over inc Sc
curities until the sale was abandoned pu' INC "
ing was evidently transferred from the auction
rooms to the floor Of the Stock Exchange. Speyer
& 90 were mentioned as the creditors who had
made the sales at the Exchange as they nave peeh
known to have held part OF the Northern Pacincs
floating debt At their Office II was ueheu '''ae
they had closed any loan. but no answer "oulu
be returned to the inquiry as to whether ''eS ne''
the bonds which 1t had originally been proposed 10
offer at auction Nevertheless the street had only
one view as to the transactions at the otocA EA-
change contendng that they represented hlulud-
ton OF part Of the floating debt. opinions diHereu
as to the buyers Of the greater part Oh '"e Sc
curities sold. some shrewd observers believing 'hd'
the creditor who sold secured possession Oh 'he
sacrificed collateral. remarkable feature oi ue
situation was the steadness of Northern Pacihc
stock in the midst OF the slaughter anu eAci'ee"'
attending the companys bonds
1t was impossible to CLEAN any facts regarding 'ne
condition of the companys hoatihg deo' a''e'
Yesterdays severe liquidation in It's securities
The Street believes that the company has LOST
control Of a heavy amount OF It's treasury assets
through the liquidation, and this raises the ques-
ton as TO how far the company can furnish the
collateral pledged TO secure the collateral trust
note issue which was to provide for the floating
debt Yesterday was the date fixed for the pay
ment Of the remaining 20 per cent OF the suDscrip-
tons to the syndicate who agreed to underwrite
the collateral trust plan. 1t could not be learned
whether any payments had been made
No application has yet been made for authority
10 issue receivers certificates for the Northern
Pacinc The step is contemplated. as said IN The
Tribune. but formal application may not be made
for a f"w DAYS. The amount that Will be applied
for has not been determined 1t may be Influenced
by the condition In which the floating debt now IL.
and the cost Of possible recovery of collateral
that has been sold on the closing out OF loans TO
the company President Thomas +. Cakes said:
we shall make application at Milwaukee for
eav" to issu" receivers certificates to the amount
Of several millions OF dollars. This action is taken
In or Ter funds for the purpose Of recover
ing control OF collateral now pledged In loans. We
regard II as essential 70 the protection Of the prop
erfV'
Another au,bort,v on Northern Pacific said. 'It is
no secret that our securities are In loans in the
Street. and cannot get the securities for the
purpose OF carrying out the collateral trust note
plan without paving these loans. In the present
condition Of the money market II Is practically i'm
possible 10 borrow money In large amounts. Conse-
qUeuiy the issue ~ receivers certificates is the
simplest and most feasible devic" for the pro-
lection II the property We regard II greatly TO
the advantage OF the security holders that this per-
mission should b- granted"