New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-03-16
NETWORK DAILY TRIBUNE MONDAY ls s-sIxTEEN PAGES
CinanrlQl.

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The foregoing percentages to bonds are based upon
the principal amount Of deposited securities.
The payments by depostors Of Preferred and Common
Stock be made less than three instruments.
least 80 days when. and called for by adver
tisenent. fully provided in the plan
The will be in coupon form for $500 and
each right into registered bonds
of ZOO and $4,000 Interest on new Prior Lien Bonds
issued for present General First Mortgage Bonds VIII
from July l. 1885, and will be paid quarterly. as
provided the plan. Interest on all other BONDS
" neither Prior Lien General Lien) will start from
January /. 1897 payable before completion Of the
reorganization.
Equitable settlements will be made for fractional
amounts bonds and stocks accruing to deposors
With reference to the present GENERAL FIRST
MORTGAGE BONDS IT may be explained that 1t Is
not sought In any way to enforce CONVEX
sion, and offer them is made solely upon the be-
lief proposed. such conversion while
advantageous the Company is also manfestly to the
advantage Of bondholders converting
The present First Mortgage Bonds mature In
1921 but redeemable by compulsory drawings at any
time at 40 per the proceeds OF land sales or
the fixed annual contribution by the Company to the
Sinking Fund
These compulsory redemptions in the past have been
a disturbing factor all calculations for investment
PURPOSES and the Inauguration OF a and vigorous
policy for the sale OF the lands be expected from
forward greatly to Increase the amount Of such
relemptloas.
In some years these redemptions required large
contributions the Operating Department even TO
the OF the entire annual Sinking Fund. sum
which would provide for the annual interest on about
si0OOo0o0 Of Prior Lien Bonds proposed 1t Is
manfest the benefit Of holders of General First Mort
gage Bonds obtain investment OF longer continu-
also the benefit of all subsequent securi-
diminish this unnecessarily large burden OF annual
charge
conversion on the basis indicated the preceding
table will relieve holders Of General First Mortgage
Bonds from these calls for redemption. which prevent
their bonds from reaching the high price they would
otherwise command. and also will relieve the company
burden Of the Sinking Fund requirements and
also permit the Of portion OF the proceeds OK land
sales benefit Of the property.
The General First Mortgage bonds now outstanding are
500 46G per mile The proposed Prior
Lien Bonds including for the ST. Paul and
Northern Pacific Bonds will amount to about S223lO per
mile and will cover Equipment and the Branches
and Terminals proposed under tho Plan.
The fixed charges for interest and sinking funds
on the present General First and Divisional Mortgage
Bonds are at the rate 81 per mile while it Is esti
mated Prior Lien Bonds they will amount to
s935 per mile.
SYNDICATE OF si5.OOO.OOO HAS BEEN
FORMED TO PROVIDE THE AMOUNTS OF
CASH ESTIMATED As NECESSARY TO CARRY
OFT THE TERMS OF THE PLAN OF REOR-
GANIZATION. TO FURNISH THE NEW CoH-
PANX WITH CASH WORKING CAPITAL AND
WITH n ~ VI ~ Tos'"'vsV'V WV
EARLY USE IN RETIREMENT AND ENLARGE
MENT OF ITS PROPERTY.
The adjusted net earnings. OF the Northern Pacific
system for the five show average surplus
nxed under the plan Of reorganization
about 81 10000 annum sum sufficient TO pay an
annual dividend Of about 2s per the Pre-
ferred Included in this period the last two
years when owing combination of unfavorabie
circumstances. earnings fell to abnornally low figures
greatly reducing the Even for the present
vear yi' disadvantages under
which system operated. the earnings promise 20
amount a which would pay to per cent. div
dend on Stock when the property shall
have present legal en,angements
and excessive financial burdens. II Is believed. az IL
to with good reason that in the future these
earnings be greatly increased.
All holders bonds affected by the plan
now deposit their securities with either CT
Offices receiving therefor negotiable receipts exchange
able at any for reorganization certificates.
Securities not deposited will be entitled TO
participate In the benefits Of the reorganization
Holders Of receipts Mercantile Trust Company OF
York deposited under the existing Bond
holders Agreement OF February 10. 1894 are invited
possible delay. TO signify their approval Of
plan by producing their existing receipts ut one of
our Offices In order that stamp such approval
thereon Under the Of the plan. the Managers have
the right which any time hereafter. in their dscre
ton they may exercise TO exclude from the plan any
holders Of such receipts shall conform the
quest present receipts for stamping expressly
asserting to the plan.
Copies Of agreement, plan Of reorganization
ready distribution. and all security holders are
invited to them from al! depositors are
bound thereby without regard to this circular They set
forth in detail many features which Is mpractcable
condens. this circular but which are Of much i'm
portance security holders.
We believe the prompt contamination Of the plan
will result interests OF all security holders.
and will place this property a sound and con-
basis
ANY FURTHER INFORMATION Connected
WITH THE REORGANIZATION, WHICH MAY
DE DESIRED by SECURITY HOLDERS. WILL
DE III FURNISHED on APPLICATION AT ANY OF
OUR OFFICES.
u. y. Morgan d. Co.,
- Wall New York.
Drerei 4. Co.,
9Th and Chestnut SITS. Philadelphia.
Deutschc Bank,