New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-11-26
RAILROAD INTERESTS
"DETAILS OF THE HILL PLAN.
,,ov HE PROPOSED TO REoRGANIzE NORTHERN
- p,c1rIc-CoMMENTs IN WALL STREET

NE PROPOSED TO REoRGANIzE NORTHERN
p,crr1c-coMMENTs IN WALL STREET.
,.,,os Of the Hill plan Of reorganization of the
s,horn Pacific Railroad. although II was issued
~ Nav have Just appeared in Wall Street and
,.n discussion over the proposed plan has fol-
I'll. The plan IS follows:
The frs, poin; of the ADAMS reorganization plan
umo foreclosure OF the old company and the
rs-maton of new company under special arrange
tents for this purpcse
.r,ount OF slo.o@co and a maximum OF 500
eNp SOFA oen' h,T s - ha eser,ed
a. nresent frs mortgage bonds later. and $780, ocO
oOi,os"n branch roads and for new construction a,
l'mexmum charge Of $4,000 per mile The new
soads vii be secured by nortsage lien on the
81 Paul and Northern Pacific Railway line and
stJ bear Interest partly at and partly at per
esa: an under The Same mortgage.
- The capital and interest OF the new bonds
yTo-. T. ne conpany by indSrsng each bond the
Great Northern Company receiving in return half
"a The Board OF Directors OF the new company
animated by tho Northern Pacific Reorganization
BE- given: (O For each 1900 Northern Pacific
second mor;sase bond a sl.l25 ~ new ! per cent n
BOND S.ooo new per cen, guaranteed bond and
a; least SO in shares (c) for each SloO per cent
c0nsol a, leas, 500 per cent new guaranteed
That overdue coupons Of the second mort
ssaasSuaiiy These OF the thiri mortgage are to be
najd In cash the rate Of per cent annually
and those In conso's are to be adjusted at the
rte OF 2iS per cen; in new per cent bonds.
The floating debt Of the receiyershp * 10 ne
na.l by the assessment Of about SiLcM~ on the
Oh stock. -,
V The reorganization and the raising Of the
necessary working capital TO be secured BY
syndicate headed by J. Pierpont Morgan and the
Dsuische Bank
ore o. those who is opposed to Mr. Hills plan
roes, the following comments yesterday
Mr. Hrl proposes TO Guido Mr. Willard IN the
issue OF bonds. the former having Issued Sgo.
0NOQ Yet the Great Northern showed a dehcit
a year ago Of more than 100000. The third para
new stock. would he turned over to the Great
Northern. The fourth paragraph means that nVe;
or a ma jOrity OF the directors would be nance
b. Tho Great Northern. while the other four wou!o
be practically Great Northern men 49, .A,rd
The 9Th paragraph provides for giving the thlru
mortgage bondholders at least $3.50 Of STOCK io1
each 5000 bond. AS there sl2eOOcD OF the thirG
mortgage bonds this would call for N,cn0N OF
stock I. also provides thar AT least 500 In STOCK
fhal be given to each holder OF $1,000 conso!s AS
ms would call for about s14OoO0o0 OF stock IN
o,her words $4,000 of stock would have to De
6eiucted from The $4,000 600 remaining after me
Great Northern had taken its S1eoV9; so ihat
H. allotted to TIE present holders of $S1"lco OF
common and preferred stock In other woTus. each
Northern Pacific stakeholder would nave 70 sur
render about c. per cent Of his present holdings
Under the seventh paragraph the asseSSIneH y,
would fall uDon The IS Der cent since the Old STOCK
T0u,d cease 70 exist TIL present holder Of 100
shares Of stock would receive only thlrty-cis IN
shares Of the new, and this would have 70 pay me
& assessment share. The plan is oNerWheihl-
.rlv 10 The advantage OF the Great Northern.