The herald., 1895-05-19
HILL TALKS VERY FREELY
But the Railroad Manager
Has Little to Say
NORTHERN PACIFIC DEAL
His Road May Take Part In the
Reorganization
The President of One Of the Greatest Railroads
In the Country Submits to an
Interview
Associated Press Special Wire.

Associated Press Special Wire.
NEW YORK, May 1s.-Among the pass
engers on the steamer New York, which
arrived here this morning, was President
J. J. Hill of the Great Northern. who
has been talked of very much OF late in
reference to the proposed control OF the
Northern Pacific. He said:
"The reorganization committee OF the
Northern Pacific have majority of each
class of bonds and are ready to push the
reorganization of the road quite vigor-
ously." ~
Are the Great Northern people insNr-
ested in the matter
81 am one OF number OF gentlemen
who are interested in the Northern Pa
cifc reorganization, and our company
will be ready to do anything t can to
facilitate the matter. We shall be glad
to sea the Northern Pacific reorganiza-
ton on a basis which can carry It's finan-
cial burden.
sThe three failures of the Northern Pa
cifc, commencing W til Jay Cooke. have
marked three financial crises or panics In
America. and think that the placing OF
the company on sound financial OASIS
as at present proposed will do much to
restore the credit of the security holders
here and abroad as anything that could
be done anywhere.
"Will the Great Northern take part in
the reorganization?"
II am not prepared to say what the
Great Northern will do further than to
state that you may depend upon the
Great Northern looking out. to the best
OF it's ability. to: Its own interests. 1t
will be most glad to cooperate with the
bond holders of the Northern Pacific to
secure the desirable results l have stated
and thus put that company on sound
basis. l don't care to 90 into the matter
any farther at this time for reasons that
must be apparent to you.
"Did you meet J. Pierrepont Mo, gan
in London?"
"No: there is absolutely nothing in
that story at all. :" replied Mr.. Hill. II
never saw him, much less talk to him.
what are your relations with the van
derbilts. present and prospectiNe?'
"We have very pleasant relations with
them" answered Mr.. Hill, ''our rela-
tions are also pleasant with the other
lines, and We have no desire to make
any closer alliances than ara at present
existing"
| BERLIN, May ls.-Fo1 the past four
days meetings of the United German
Northern Pacific committees hay been
considering the proposals of Mr.. ed
Adams. the receiver Of the Deutsch bank
of Berlin, for the reorganization OF the
Northern Pacicti railroad and they have
authorized him to carry out his plan,
which the bondholders will be recon-
mended to accept.
The first point OF the Adams reorgani-
zation plan is foreclosure of the Old COM
pany and the formation of new COM
pany under special arrangement for this
purpose.
Secondly. the new company is to issue
| shares to the amount OF 500. 600, 600 and
maximum OF $500, 900 gold bonds, free
of taxation. A sufficient amount of
these bonds is to be reserved in order to
replace the present first mo rtgage bonds
later, and So. 900. 00C bonds are to be re-
served in order to acquire independent
branch roads, and for a new construction
at a maximum charge of $40. 900 per. mile.
The new bonds will be secured by a
mortgage lien on the Northern Pacific
system, including the st. Paul and North
ern PaciTic railway line and will bear
interest partly at four and partly and
three per cent, all under the same mort
gage:
new bonds are to be guaranteed uncon-
ditonlly by the Great Northern company
by ordering each bond. the Great North
ern receiving in return half OF the stock
OF the new company.
Fourthly. the board of directors of the
new company is to consist of nine di-
rectors, four OF whom are to be nomi
mated by the Northern Pacific reorganiza-
tion committee.
e Filthy in accordance with the scheme
there should be given for each $1,000
Northern Pacific second mortgage bond:
A-$l125 new four per cent guaranteed
bonds; B-For a $1,000 third mortgage
bond $1,000 new three per cent guar
anteed bond and at least $3.50 in shares;
C--ior each $1,000 five per cent consol, at
least $500 three per cent new guaranteed
bonds ana 5000 i'll shares.
Sxthly. that overdue coupons OF the
second mortgage be paid in cash at the
rate of five per cent annually. Those of
the third mortgage sre to be paid in cash
at the rate of four per cent and those in
cosols are to be adjusted at the rate of two
and half per cent in new three per cent
bonds.
scventhly. The, floating debt of the
receivership is to be paid by the assess
ment of about $l1. 0o0 900 on the old stock.
Eighthly, the reorganization and the
rating of the necessary working capital is
to be secured by syndicate headed by
Messrs. ]. Pierrcpont Morgan and the