The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-04-14

Answer or Forefgu hon b oIders to Certst.
Statements OF the Directors.
In answer to the appeal for the support OF
the bondholders which.was sent out some time
ago by the officers and directors OF the North
ern Pacific Railroad Company. the committee
OF the association Of owners OF the CONSOLE
dated Ave per cent bonds OF Berlin and Frank
fort n-ths- Main have sent out the following
statement:
Tho Board Of Directors Of the Northern
Pacific Railroad Company warns the bond
holders in the public press not TO accept an
agreement OF reorganization proposed by the
American Reorganization Committee OF North
ern Pacific i've per cent consolidated mort
gage bonds The appeal OF tho Board has been
drawn from point OF view directly opposed to
the interests OF the bondholders. viz. from the
point Of view OF the Shareholders
/. Tho agreement proposed by the New
York committee empowers this committee
solely to prepare and draw q plan OF reorgani-
cation and to watch in the mean time the
maintenance OF the rights OF the bondholders
the respective mortgages. The decision as to
acceptance or non acceptance OF the plan Of
Is 10 to the Ss
studied by the expert. appointed By the com:
OF time to form the ReorRa ntzation Committee
only after the termination Of such, studies.
sent one kind of bonds only. but allow ali is:
sues to Join the committee. As q matter OF
gage bonds have signed the. agreement for S up
ward OF four million bonds. Relations with
Sass bosn also WITH thss q S1a e.:
oi course. never been the Intention to reorasn:
). Mr. Henry Willard has ' notSins V TO DO
either, with the com position OF the COMMITTEES
spscts retired from the AFFAIRS q the Northern
Pacific, and for several months back has been
10 give Mr.. Willard in future any voice w In tSs
management Of the Northern psciae Railrosd:
ss s. S WITH has
A. gSSblIshsd y the New YORK .sommit-
S he fSS
Agreemsnt with its more than seven million
IS. The contention that the 50. 400, 900 con.
Bosss .sSf the s sn sa nnsss
previous Disc arss Of the debt, Which Is very cry
bonds would revert to the road and Would then
be subject 10 the order OF the receivers and the
:" The present situation ofthe Northern Pacific
Railroad has been brought about through the
mlsmanagoment OF the shareholders, and the
bondholders have to take the protection OF
their interests in hand them selves. The pro-
eeedings Of the New York COMMITTEES appear
therefore. so far perfectly justified. as the in
terest Of bonds and shares are not Identical"
Tho committee representing the consoli-
dated mortgage bonds OF the Northern Pacific
Railroad Company announce that their exam-
ination OF the company's affairs has already
developed the fact that an Indebtedness OF
about S5,bOO.OOO existed In the West when the
receivers were appointed, most OF which was
for material. supplies. and wages. and which
10 held to be preferent By the court
1t has therefore absorbed the larger
part OF the cash rem aiming In the
terest. Expenditures upon the property are
now necessary TO secure Its economical and
safe operation. The net earnings from Aug
l5 iastto Jan. 81 were only So, 400 sitter pay
ing interest and sin king fund charges due
upon the first. second. and third mortgages.
For these reasons and the fact that there Is no
prospect OF immediate improvem emit In earn
inRs. the committee urges the holders OF the
consolidated mortgage bonds to deposit them
at once with the Mercantile Trust Com
pany. In Its Investigations and efforts to
secure economics the committee has gained
the cooperation Of about oDe-half OF the third
mortgage bonds and more than ons-quArtsr OF
the second mortgage bonds. Holders who
may not agree to the reorganization plan here
after presented by the committee may with
draw their bonds from deposit