The times. [volume] (Richmond, Va.) 1890-1903, 1896-03-19

Details of the Plan for Financial Reor-
ganiz. on.


pleted. and circular In con-
necu0n herewith Will APPEAR in
tomorrow mornings papers in this
city In the lOlln "a an a.. 90 1isement, Oser
the sigAature Oh j.. !. morgan a 20. OF
New lOrk. DrextR& Co., OF Philadelphia,
and The Dcutscne banA OF Benin. 4 lrtn-
er details raruing The pan viii be given
out tO-uIOrIOW.
the creation Of the following new secur-
tiles IS proposed.
+ tiIst-frlor i'm one hundred year four
per cent god bonds. $lyOuvJ.vJO.
These bonus are 10 be secured =. a
mortgage Upon tAe main line. branches,
D terminals. Iaul giants. equipment. anu
I other properly embraced iu the rcOrgaui
/ - ..ou. a. ca4risu out, ana also all other
l properly thereafter acquired by the use
/ OF amy Oh the bonds 10 De issued under
/ the mortgage. or the general mortgage
hereinafter mentioned.
/ these bonds after tle retirement OF tie
/ general nrst mortgage bonds Will be an
! piled Onc-half but not in any one year cX-
/ ceeding $4,000, 10 the purchase OF the
prior lien Tour per cent bonds at not eX-
! ed-ng 40 Der cent. and their cance4ia-
/ ton, and the remainder, under carefully
guarded restrictions. Will be- used Tor tie
/ btttement and 1dii lions 10 the property
/ pledged as security iOr the bonds.
| Whenever these bonds cannot be pur-
! chased at the maximum price. the GnaD-
/ phed ana pl octeus ior tnat year Will DC
used To purchase the general len three
! per cent. bonds al not exceeding 100 per
| cent and their cancehttion
Seoond-General lien one hundred and
| nifty year three per cent. gold bonds, linz
/ iteu IN amount 10 &tt'"1, IN ADDITION
10 reserve for the one hundred year four
per cent. prior lien mortgage Of SlJO.OOO,-
/ OUo
These bonds are to be secured by a
mortgage second in lien 10 the prior lien
mortgage, and covering the same prop
erty.
Third-Preferred stock per cent nom
/ cumulative. limited in amount. under the
pan, 10 not exceeding SO ,Opl VOJ when
amount can be increased only with the
! consent Of preferred and common stock
holders as provided In the plan. Eacn
share Of this preferred stock viii be enti-
| tied 10 nOn-cumulatiYe preferential dlNl-
dends out of surp. US net earnings 10 the
extent OF per cent. per annlm without
deduction. Ia any fiscal year IN when
per cent dividends shall have been de-
clared on both common and preferred
stock, all shares shall pan uc!pate equally
in any further dividends for such year
After the termination Of the voting
trust the preferred stock Will have the
night 10 elect a majority OF the toafd OF
directors OF the new company Whenever
for two successive quarterly periods, The
full and regular quarterly dividends, at
the ate Of 4 per cent per annum' are not
paid IN cash.
The right will be reserved 10 the new
company 20 retire THIS STOCK IN Who!e OF
in pdrL. al par, flOm time 10 time. upon
any first day OF January during the next
twenty years.
Fourth-Common stock TO the amount
OF not exceeding srp,VW.VD.
In furtherance OF the independent reor-
ganizauou and the administration OF the
property and its securities. both classes
of stock OF the new company except such
shares as may he disposed OF 70 eua-ilE
directOrs) are to be vested IN the fOlloWlhb
five voting trustees, viz. J. PlerpOnt Nor
gan George Slemens, August belmont
Johnston Livingston. and Charles Lanief
for five years. although. In their discre-
ton, the voting trustees may ueiiEet 'Ne
stock al an earlier date.
The prior lien bonds are 10 be appro-
priated approximately as follows
To retire an equal amount OF general
first mortgage bonds. S4l,siJ.oDH
To provide for the conversion ana, so
far as necessary. for the sinking fund OF
the general first mortgage DOhusi slf'-
GJ7.G5O. Ia
FOR the payment Of receivers certit-
Gates and equiqment trust ana Tor inc
conversion OF the collateral trust notes
and the general second mortgage bonds
Total present issue under the plan es-
tlmated al SG.577,no0. ,...
for an equal amount Of bonds OF the 81.
Paul and Northern Pacific Railroad COM
pany, ~425,OvD.
Estimated amount % De reserved for
new construction, betterments. equip
mcnt. etc, and 10 the extent or not tA-
cepding SiJo0,Oo0 per annnm, S-tr1,tp.
Total authorized issue. SljO,Wupp
The general lien bonds are 10 be appfo-
priated approximately as ioIows' Ut,
For the conversion of the ftnelal thlt1
mortgage bonds. dividend ccrtlncates, ana
the consolidated mortgage ana brahch
line bonds under the plan, SoovooDn
Estimated amount 20 DE reserved uhusT
||l.|Ir
gage for new construction, beltefh.cnts,
equipments, etc, NV0vn-
Total issue in excess OF prior Hen bonds,
estimated al SGoOlDpVh ~,
Reserved 10 provide Tor the PRIOR zen
bonds al their maturity in lvo years
Maximum amount Of both mortgages
$3.50 OODoOO.
The preferred stock Is 10 be apportioned
approximately as follows:
For conversion and adjustment Of vatl-
Gus main lire and branch line mortgage
bonds ana the dciaulted intrre 81 tutit9n.
and other purposes, as provided IN me
plans S12.uNOUun.
Estimated amount which may be used
for reorganization purposes. or may Dee
available as a treasury asset Of the new
company, S2,JOO0o.
approximately as follows;
For purposes of CONTAMINATION, as pro-
Vidfd in the plan. SfJJpp,vJD.
Estimated amount which may be used
for reorganization purposes, or may De
available as q treasury asset or the new
company. 100000
The basis of exchange OF existing bonds
and sale of new stock is as follows;
General first MORTGAGE nonds, tdSh "
Dcr Cent payable April l, 1895, represe nj
ing the coupon due July l, 1886; new prior
lien mortgage bonds. l3J per cent
General second mortgage bonds. cash
uer cent. uayable sixty days after me
plan shall have been declared operative
new prior lien, rs - per cent: preferred
stock trust certificates. 80 per cent
General third MORTGAGE bonds. cash :
per cent. payable sixty days after the
plan has been declared operative, ne"
general lien mortgage bonds lle Il per
cent. preferred stock. 30 per cent.
dividend certificates. cash 3 per cent.
pavable sixty days after the plan mas
been declared operative new general lleii
1rS ner cent. preferred stock. 20 per cent.
Consolidated mortgage bonds. cash i
Nor cent, payable slNtV days aitef lhe
pl9n has been declared operative; new
general lien. C6 L. per cent; preferred
stock. 90 - per cent.
cent. pavahio three per cent. May ], lN'"'
four ner cent. January !, 1897. new prior
lien. 1D0 per cent, preferred stock, twenty
Northwest equipment stock cash 100
per cent. PAYABLE az any time 10 the dis-
erection Of the managers, or before COM
pletion OF generalization. with interest
al six per cent per anhuh from June l.
1896.
mont al n sum equal 10 $40 per share, pre-
ferrod stock hfty per cent, common
stock fifty per cent
Deros'tors Of common sto-k-for yay-