Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1896-03-16

pendous Scale - Deia Is Of the
Plan.
New York, March 15.-The reorgan-
ization plan of the Northern Pacific
Railroad Company has been completed,
and a circular in connection herewith
will appear in tomorrow mornings
papers in this city in the form of an
advertisement over the signature OF J.
P. Morgan & Co., of New York, Drexe
& Co., OF Philadelphia, and the Duetsche
Bank of Berlin. Further details re-
garding the plan will be given out to-
morrow.
The circular, as it will appear, pro-
poses the creation of the following new
securities:
First-Prior lein, one hundred year.
four per cent gold bonds, $3.50. .00O. 600.
Ihese bonds are to be secured by
mortgage upon the main line, branches.
terminals, land grants, equipment and
other property embraced in the reor-
ganlzatiOn, as carrie1 out, and also all
other property thereafter acquired by
thelssue ofany Of the bonds to be issued
uhder the mortgage or the general
mortgage hereinafter mentioned.
HE PROCEEDS OF THE BONDS
applicable to these bonds. after the re-
tlrement of the general first mortgage
bonds, will be applied one-haIf. but nor
IN any one year exceeding $500. 900. 10
the purchase of the prior lien four ner
cent. bonds at not exceeding 40 ner
cent. and their cancellation: and the
remainder, under carefully guarded re-
strlcuons, Will be used for the better
ment and additions to the proner+v
pledged as security for the bonds
whenever these bonds cannot be pur-
chased at the maximum price. the nm
appiIed land proceeds for that year will
De used to purchase the general lien
three per cent. bonds at not exceding
100 per cent. and their canceIIation
Second-General lien. 15O wear tbreo
per cent gold bonds, limited in amount
20 SoV'OOO'OOO in addition to the reserve
for the 100 year, four per cent prior
lien mortgage Of $4,000 OOO
hese bonds are TO be secured nv =
mortgage second in lien to the nrior
lien mortgage, and
CON ERING THE SAME PROPERTY
Ihlrd-Preferred stock. four no,
cent non-accumulative, limited in
amount, under the plan. to not evceed1
ing Sf5,OOO,OO0, which amount can ba
increased only with the consent oP nro-
Ierred and common stockholders ss
ProVlued IN the plan. Each share op
thls preferred stock will be entitled 10
Hon-cumulative preferential dividends
out or surplus net earnings 10 the ex1
tent OF four per cent per annum viii
oII ueuuctlon. In any fiscal year in
wnlch Iour per cent. dividends shall
nave been declared on both common
ana preferred stock, all shares shall
participate equally in any further divi.
dends for such year.
AFTER the terminating of the votino
trust the preferred stock win have tbe
Iislt 10 elect majority of the hoard
oI directors of the new company when
ever Tor two successive Quarterly nor
ioCs' the full and regular quarterly div
luehds' at the rate Of four per cent ner
annum P0' 0'4'' per
-, AXE NOT PAID IN CASH.
ne rlght Will be reserved TO the now
company TO retire this stock in whole
OF IN part, at par from time 10 time
upon any first day OF January during
the next twenty years.
Ourth-COmmOn stock N Tho
amount or not exceeding $50. 600 OOO
In furtherence of the indenenden4 70
organization and the administrators 80
the property and its securities botb
classes of stock Of the new comnanv
ISAcepI sucn shares as may be disposed
Vi 70 quallhed directors are to be vest
ed IN the following five voting trustees
VIZ: j. Pierpont Morgan. George Sic.
mems August Belmont. John Stone
Livingston and Charles Lanier. for FIVE
years although in their discretion the
voting trust may deliver the stock at an
earlier date.
The present general first mortgage
Donds mature in 1921, but are redeem
able
BY COMPULSORY DRAWINGS
at any time at 40 per sent. from the
proceeds Of land sales or the preferref
annual contribution by the comnanv
TO the sinking fund In some wears
these redemptions have required II is
explained, large contributions from the
operating department. even 10 the ev-
tent Of the entire annual interest on
about $4,000 600 Of prior lien bonds as
now proposed.
A conversion on the basis set forth
II is also explained, viii relieve the
holders Of general mortgage bonds
from these calls for redemption as
well as the company from the sinking
fund requirements.
The general first mortgage bonds nozv
outstanding are at the rate of about
S2O,466 per mile. The proposed prior
lien bonds, including those reserved
for the ST. Paul and Northern Pacific
bonds will amount to about s22. 80 per
mile. II is estimated that on the prior
lien bonds the annual fixed charges will
amount to 1886 per mile. as compared
with Sl.6lS under previous arrange
ments.
A syndicate OF $45.O0O. 900 has been
formed to provide the amounts OF cash
estimated as necessary 10 carry ont
the terms Of the plan OF reorganization.
10 furnish the new company with cash
working capital and with a sum esti-
mated at s5.0OO.O 900 sor early use in bet
terment and enlargement Of its prop
erty.