Reporter and farmer. [volume] (Webster, Day County, Dakota [S.D.]) 188?-1946, 1896-03-19

t'A "a liit ANoIllfpTH iHflnr
itaiiroad company has been completed,
ana a circular in connection Herewith.
appears In this mornings papers of
this city. in the form of an advertise
nient over the signature of J. +. Nor
gan Il Go. of New York. Drexel & Co.
oI Philadelphia and the Deutsche
Bank of Berlin. Further details re-
gardinG the plan will be given out to-
morrow. The circular proposes the
creation of the following new securi-
ties:
first-Prior lien rooyear 4 per cent gold
bonds. sl30.OOO.OO0. These bonds are TO be
secured oy a mortgage upon the main line.
Drahches. terminals, land grants. equipment
ana other property embraced In the reor-
Sanization. as carried out. and also all other
property thereafter acquired by the use Of
any OF the bonds to be issued under the
mortgage or the general mortgage herein
AFTER mentioned. The proceeds of the lands
applicable to these bonds. after the retire
ment OF the general first mortgage bonds,
Will be applied one-hslf, but not i'm any one
year exceeding $500, N to the purchase of
prior lien 4 per cent bonds at not exceeding
no per cent, and their cancellation; and
the remainder, under carefully guarded re-
$3.50 ~ y" " u bNlifl liltlN
and additions to the property pledged as
security for the bonds. Whenever these
bonds cannot be purchased at the maximum
price, the unapplied land proceeds for that
year Will be used To purchase the general
lien 3 per cent bonds at not exceeding 100
per cent, and their cancellation.
S~ecOnd-General lien l50-year 3 per cent
gold bonds, limited in amount to 500. 800
900, in addition To reserve for the 1O0-year
4 per cent prior lien mortgage of Si30, 600
100. These bonds are TO be secured by 4
mortgage second In lien to the prior lien
mortgage and covering the same property.
Issues Of stock.
Third-preferred stock, 1 per cent non
cumulative, limited in amount. under the
plan, to not exceeding S75,00O,oO0, which
amount can be increased only with the con-
sent of preferred and common stockholders,
as provided in the plan. Each share of
his preferred stock will be entitled to non
cumulated preferential dividends out of
surplus net earnings. TO the extent of 4 per
cent per annun, without deduction. In any
iscal year in which 4 per cent dividends
shall have been declared on both common
md preferred stock, all shares shall par
.icipate equally In any further dividends
'or such year. After the terminating of the
gotlng trust the preferred stock will have
The right TO elect a majority Of the board
IF directors of the new company whenever
-OE lNo cUEN'SEltC IultltIig ptIIOhS tue lull
and regular quarterly dividends, at the rate
,f 4 per cent per annum, are not paid in
cash. The right will be reserved to the
new company to retire this stock, In whole
Or in part, at par. from time to time upon
any LIST day of January during the next
twenty years.
Fourth-Common stock to the amount Of
not exceeding $50, 600. 600.
In furtherance OF the independent reor-
ganizatiOn and the administration of the
property and its securities, both classes Of
stock of the new company except such
shares as may be disposed of to qualify d.
rectors) are TO be vested in the following
1--we voting trustees, viz: j. Pierpont Nor
gan, George Siemcns, August Belmont,
Johnston Livingston and Charles Lanier,
for five years. although in their discretion
the voting trustees may deliver the stock
at an earlier date.
The prior lien bonds are to be appropriate
,d approximately as follows: To retire an
equal amount of general first mortgage
bonds. SAL $40 1900; to provide for the con-
version and, so far as necessary. fo- the
sinking fund OF the general first mortgage
bonds. Sl4, 657 $50; for the payment Of re-
,~eivers' certificates and equipment trust.
and for the conversion of the collateral
trust notes and the general second mortgage
bonds. $40 4O 1850. Total present issue un-
der the plan estimated at s96,517,0oO
bonds Reserved.
Reserved 10 provide at their maturity for
an equal amount Of bonds of the ST. Paul
& Northern Pacific Railroad company, S.
i23, 900; estimated amount TO be reserved
for new construction, b~etterments, equip
nlent. etc, and to the extent of not ex.
ceeding Si.500,0 900 per annum, SO 600, 900.
Total authorized issues. $1,000 600.
The general lien bonds are to be appro-
printed approximately as follows: For the
conversion of the general third mortgage
bonds, dividend certificates and the con-
solidated mortgage and branch line bonds
under the plan. $50, 900, 900; estimated
amount TO be reserved under carefully
guarded restrictions In the mortgage for
new construction, betterments, equipments,
etc, $4,000 q Total issue In excess OF
prior lien bonds. estimated at S60,OOO.000.
Reserved to provide for the prior lien bonds
nj their maturity In 100 years, $780, O0,O 600.
Maximum amount of both mortgages, Sl9o,-
900, 900.
The preferred stock Is 10 be appropriated
approximately as follows: For conversion
and adjustment Of various main line and
branch line mortgage bonds and the de-
faulted interests thereon, and other pun
poses, as provided In the plans, sl2,OO0,-
900; estimated amount which may be used
for reorganization purposes. or may be
available as a treasury asset OF the new
company. 100000.
The common stock Is to be appropriated
approximately as follows: For the pur-
poses Of reorganization. as provided In the
plan, $40, 800, 600; estimated amount which
may be used for reorganization purposes.
or may be available as a treasury asset OF
the new company. $2.500.O0O.
Basis of Exchange.
The basis of exchange of existing bonds
md of sale Of new stocks Is as follows:
General first mortgage bonds. cash 3 per
cent. payable April 1, 1896, representing the
coupon due July ]. 1896; new prior lien
mortgage bonds, 135 per cent; general sec
md mortgage bonds. cash 4 per cent, pay
able sixty days after the plan shall have
oeen declared operative; new prior lien,
l1slS per cent: preferred stock trust GER
tifcates, 80 per cent; general third mort
gage bonds. cash 3 per cent. payable sixty
laws after the plan has been declared oper-
alive: new general lien mortgage bonds.
IISh FER cent: preferred stock, so per cent;
dividend certificates, cash 3 per cent, pay
1ble sixty days after the plan has been de-
,Iared operative: new general lien. llS per
cent. preferred stock, so per cent.
Consolidated mortgage bonds. cash. IL
per cent. payable sixty days after the plan
has been declared operative; new general
lien. 66 IL per cent; preferred stock.
so IL per cent. Collateral trust notes.
49,