The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-04-07
REORGANIZATION OF THE n. p.
Majority of Bondholders Approve it
Changes Among the officials.

The Adams reorganization committee or
the Northern Pacific railroad is progress
ing favorably and IL is said that plan
will be formulated in few days and sub
United to the security holders for revision
and suggestions. The bondholders are
confident that the committee is doing good
work The New York Sun of March .
says that according to the agreement of
the reorganization committee bonds de-
posted under that agreement can be with
drawn during the present month upon
payment, pro rata, OF the expenses of the
committee to date. AT the close of bust
ness yestertRy no second mortgage bonds
had been Withdrawn nor any consolidated
mortgage bonds. OF the last named there
have been during the month almost daily
deposits. OF the third mortgage bonds,
of which the committee holds about 81. 0O0,-
600 in excess of majority there have
been withdrawn during the month $40 600.
by brokerage houses friendly to the COM
mittee. After March . holders had no
opportunity 10 withdraw their bonds, and
VIII have none until IA plan of reorganiZa-
ton has been submitted for their approx
al, unless the publication of such plan
should be delayed beyond October I next
The opportunity given to holders who
had deposited their bonds with the Adams
reorganization committee to withdraw
them during the month ending March -
has been regarded In Wall street with a
good deal OF interest Sand the fact that
none has been withdrawn. except a few
in the interests OF special committee
representing the minority holdings of the
third mortgage bonds. will obviously be
construed a evidence OF confidence on the
part OF the bondholders in the work of the
reorganization committee.
The Sun continues: THAT the scope of
the undertaking OF the committee may be
thprnurbfN f1r,l -, 81
that 1t is not confined it's efforts to reor-
ganize the company as to it's finances
The physical condition of the property Is
also being carefully and thoroughly
studied, with view to determining pres
ent and future requirements and provid-
Ing for both. The personnel Of the ac-
tive management has also received atten-
ton, and owing To the cooperation OF the
committee with the receivers a number of
changes have been made The positions
OF auditor and treasurer have been aboI-
ished. and the duties OF those two officers
win be discharged hereafter by Mr. John
Scott. with the title of comDtrollelr Mr.
Scott succeeded General Auditor J. A.
Barker few weeks ago. and on April l
he VIII succeed the treasurer TO the re-
ceivers, Mr.. George S. Baxter. The re-
ceivers removed yesterday General Land
Agents Postlewaite and SChultze. Their
Offices will he concentrated in that of
Land Commissioner Phipps, who succeed
ed G. b 1.smborn last autumn. The retire.
ment OF Vice President James r. williams
as secretary TO the receivers on January I.
and the substitution OF William Nelson
Cromwell for James Mcknight as general
counsel completes the list of changes that
have been effected In the management.
''In devisinC a plan Of reorganization
the Adams committee will. II is under
stood. be influenced in respect TO time by
pany's lines. and also by the results which
II Is hoped will be attained by important
changes I'm the methods of operating the
road. Should this prove 10 be a good crop
year decided progress In formulating
plan OF reorganization may be expected.
Within the same period material econo-
mics and an Improvement In the service
of the road will be effected. On the other
hand no substantial reduction In the float
ing Indebtedness either OF the company
or of the receivers is likely 10 be made.
That OF the company Is steadily increas-
ing owing 10 the accumulation OF unpaid
interest on all OF its bonds subsequent 20
the FIRST mortgage. while the assets In the
hands OF the receivers. which. as matter
OF bookkeeping. can be treated as an Offset
10 the floating debt are In the main OF a
character that are Indispensable TO the
compauy's business.
Among the problems that confront the
reorganization committee Is the disposi-
ton or the floating debt OF the trust estate.
In other words OF the receivers, which Is
nearly as large as il was when the prop
ertv was turned over 20 them. say about
81 0o0eeo This. Of course. includes the
& 90 OD0 OF receivers certificates which
were taken last fan by the reorganiza ton
committee but does not include accrued
interest on bonds in default. Another
problem before them is the disposition OF
the -ofnpanv'S guarantees OF branch line
bonds and Of Wisconsin Central and Chi
caxo & Northern Pacific securities. The
payments or this account, II made. would
aggregate about g Sc 90 per annuTn II
Is generally understood that II - desira bic
10 gef rid Of practically all OF these guar
anteez and 20 reduce those which u Is de-
slrable 10 continue IN order 20 retain con-
troll 81 certain auxiliary lines Inis can
be effected ONLY through foreclosure o.
some one OF the mortgages subsequent 70
the first.
Excellent information Is that the com
r1iittee viii have An absolute majority o.
the consolidated mortgage eonds as X
now has Of the thirds IL the near fotGFe-
Daro=lts of the seconds under the com
--iftaa-s agreement have bsen increased Of
late- 50 that the amount required 70 So
r-,ra the ma sorfts- 81 that issue ~ not
large The longer the tine required 20
secure these rrai0ritiss the greater the ex-
vense % reorganization. which must even
tually come out 81 the security holders
A soon az the TIA 5ority required has been
obtained foreclosure proceedings VIII be
advanced as rapidly as possible Present
Indications are that the next six months
VIII So dev elopruents Of unususl interest
n Northern Pacific Affairs"