The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1896-03-19

2lzatlon plan of the Northern Pacific
Rallroad company has been completed.
and circular in connection Herewith.
appears IN this mornings papers Of
this city, in the form of an advertise
ment over the signature of J. r. Nor
gan q 20. OF New York, Drexel & Co.
Of 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 1oo-year per cent gold
bonds. 200. These bonds are to be
secured by mortgage upon the main line
pranches. terminals, land grants, equipment
ana otner property embraced in the reor-
ganlzatlon, 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
appilcable to these bonds, after the retire
ment or the general first mortgage bonds
will be applied one-half, but not in any one
year exceeding 100000, to the purchase of
prior lien per cent bonds at not exceeding
10 per cent, and their cancellations and
the remainder, under carefully guarded re-
strlctlons, will be used for the betterment
and additions to the property pledged as
security for the bonds. Whenever these
Donds cannot be purchased at the maximum
price, the unapplied land proceeds for that
year will be used to purchase the general
lien per cent bonds at not exceeding 100
per cent, and their cancellation.
Second-General lien 150-year 3 per cent
gold bonds, limited in amount to $50, OOO,-
GOO, in addition to reserve for the 10O-year
per cent prior lien mortgage of $3.50 OOO,-
600. These bonds are to be secured by a
mortgage second in lien to the prior lien
mortgage and covering the same property
Issues of Stock.
Third-Preferred stock, 4 per cent nom
cumulative, limited in amount, under the
plan, to not exceeding $4,000 OOO,: which
sent of preferred and common stockholders,
as provided in the plan. Each share of
this preferred stock will be entitled to non
cumulated preferential dividends out of
surplus net earnings, to the extent of per
cent per annum, without deduction In anv
z fiscal year in which per cent dividends
snail have been declared on both common
and preferred stock. all shares shall par
ticipate equally in any further dividends
for such year. After the terminating of the
voting trust the preferred stock will have
the right to elect majority of the board
of directors of the new company whenever
Tor two successive quarterly periods the full
and regular quarterly dividends, at the rate
or 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 n part, at par, from time to time upon
any 1st day of January during the next
twenty years E.a. ... s1-...s.. III
Fourth-com.non stock to the amount of
mot exceeding $50, 600 900.
ID In sfurtherance of the Independent areor-
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 di-
rectors) are to be vested in the following
i've voting trustees, viz: J. Pierpont Nor
gan, George Siemens, August Belmont,
Johnston Livingston and Charles TLanier,
for five years, although in their discretion
the ycti1s t:ustees may deliver the stock
at an earlier date.
The prior lien bonds are to be appropriate
ed approximately as follows: To retire an
equal amount of general first mortgage
bonds, $41 SIS, 900; to provide for the con-
version and, SO far as necessary. for the
sinking fund of the general first mortgage
bonds, $14, 651 $50; for the payment of re-
ceivers' certificates and equipment trust,
and for the conversion of the collateral
trust notes and the general second mortgage
bonds, $40,O40,35O. Total present issue un-
der the plan estimated at S96,577, 900. --:
Bonds Reserved
Reserved to provide at their maturity for
an equal amount Of bonds of the st. Paul
& Northern Pacific Railroad company. S.
423, 0c0; estimated amount to be reserved
for new construction, betterments, equip
ment, etc, and to the extent of not ex-
ceedng $1,500,0Oo per annum, $4,000, coo.
Total authorized issues, $3.50, OOO, 900.
The general lien bonds are to be appro-
priated 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, $56,0O0,O0O; estimated
amount to be reserved under carefully
guarded restrictions in the mortgage for,
new construction, betterments equipments,
etc, 100000 Total issue in excess of
prior lien bonds, estimated at SEQ, 600 OOO
Reserved to provide for the prior lien bonds
at their maturity in 100 years, $4,000 COO
Maximum amount of both mortgages, $780,
100000 :,
The preferred stock is to 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 pur-
poses, as provided in the Plans So, OOO,-
600; estimated amount which may be used
for reorganization purposes, or may he
available as a treasury asset Of the new
company, $2,500,000
The common stock is to be appropriated
Approximately as follows: For the pur-
poses OF. reorganiza ton, as provided in the
plan, $72,5OO,0OO; estimated amount which
may be used for reorganization purposes.
or may be available as treasury asset of
the new company, $2,50O,OOO.
Basis of Exchange.
The basis of exchange of existing bonds
and of sale of new stocks is as follows:
General first mortgage bonds, cash 5 per
cent, payable April 1, 1885, representing the
coupon due July J. 1896; new prior lien
mortgage bonds, 135 per cent; general sec
ond mortgage bonds, cash 4 per cent, pay
able sixty days after the plan shall have
been declared operative; new prior lien,
1857 per cent; preferred stock trust GER
tifcates, so per cent; general third mort
gage bonds, cash 8 per cent, payable sixty
days after the plan has been declared oper-
alive; new general lien mortgage bonds,
11S15 per cent; preferred stock, so per cent;
dividend certificates, cash per cent, pay
able sixty days after the plan has been de-
clared operative; new general lien. 11S per
cent; preferred stock, so per cent.
Consolidated mortgage bonds, cash, L IL
per cent. payable sixty days after the plan
has been declared operative; new general
lien, 661-2 per cent; preferred stock.
621-2 per cent. Collateral trust notes.
cash. per cent. payable 8 per cent May
1. 1896; per cent, Jan. 1, 1887; new
prior lien. 100 per cent; preferred stock,
20 per cent. Northwest equipments stock,
cash, 100 per cent, payable at any time in