St. Paul daily globe., 1896-03-17
URGED TO ACCEPT
THE COMMITTEE OF n. II. SHARE
HOLDERS RECOMMENDS REOR-
GANIZATION PLAN.
GOOD RESULTS EXPECTED.
The ACTION OF THE COMMITTEE
BASED UPON SUCH A SUPPOSE
TION.
BASIS OF THE REORGANIZATION.
Believed That 1t Is Especially Fa-
NorabIe TO Minnesota and the
Whole Northwest.

NEW YORK, March 16.-A circular
has been issued by the committee rep
resenting the common stockholders of
the Northern Pacific, urging the share
holders TO accept the provisions of the
new plan of reorganization, and bases
It's action on the good results expected
to accrue from the reduction in fixed
charges, and the placing of the prop
erty on a more stable financial footing
The hearing before Special Master A.
L. Cary, appointed by Judge Jenkins,
of Milwaukee, to investigate the ac-
counts of Thomas f. Oakes, II. Payne
and H c. Rouse, receivers of the North
ern Pacific was continued today. Mr..
Cary says that when the hearing has
been concluded, he will prepare his re-
port and submit it to Judge Jenkins
After that is done, the former receivers
have ten days within which to file
objections to the report. Should OBJ
jections be filed and sustained by the
court, a new hearing would have to be
ordered
At today's hearing among those in
attendance We're Senator Spooner, S. w.
Pettitt, representing the Northern Pa
cific interests, and Mr.. Turner, Of the
law firm of Turner, Mcclure & Rolls
ton, representing the Farmers Loan &
Trust company. The bOndholders were
also represented.
1t is believed here that the reorgan-
ization Of the property will be complet-
ed before the end of the week or per-
haps earlier a reorganization based
upon the foreclosure of the second, third
and cOnsol mortgages and the terms
offered to these securities had already
been executed by the representatives of
the majority of each class. 1t is cal
culated that the average net earnings
of the company for the five years end
ing June 80 last are sufficient to meet
all charges of the new company, and
leave 212 per cent surplus per annum
upon the new stock. 1t is significant
that the plan contains no reference
whatever to the relations between the
reorganized Northern Pacific and the
Great Northern railway system.
Messrs. ]. Pierpont Morgan & Co. and the
Deutsche bank Will receive a Of / per cent
on the par value of the securities deposited
and issued under the plan as compensation,
but not to exceed $1,000, 900 for both.
The plan for Independent reorganization
is on the following basis:
First-The abandonment of Chicago as the
Eastern terminal and the limitation of the
railway on the east by the Mississippi and
the Great Lakes.
Second-The ultimate union of the main line
branches and terminal properties through
direct ownership by a single company.
Third-The reduction of the fixed annual
charges to less than the minimum earnings
under probable conditions, ample provision
for additional capital as required in a series
of years for the development of the property
and for the greater facilities necessitated by
an increased business.
LONDON NOT PLEASED.
LONDON, March 16.-The Pail Mall Ga
zette says that the Northern Pacific reor-
ganization scheme is not appreciated here.
Northern Pacific preferred declined S1s today.