Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1896-03-21
Announcement of Proposed Plan
of Reorganization.
GREAT SUMS ARE INVOLVED
A Syndicate Formed to Furnish the
$4J,OOO,OOO Cash That VIII
BE Required.

New York, March 15-The reorganl-
cation plan of the Northern Pacific rail-
way 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 }. Z. Morgan & Co. Of
New York, DreXel q Co. OF Philadelphia
and the DeuJscne bank OF Berlin. Fuf-
Their details regarding the plan Will De
given out tomorrow. The circular as IL
will appear proposes the creation Oh lne
following securities:
First-Lien 1O0-year per cent gold
bonds, $3.50, 900 QUO. These bonds are 20
be secureI by mortgage upon the
main line, branches, terminals, lana
grants, equipment and other property
embraced in the reorganization as car
ried out, and also all other property
thereafter acquired by the use OF any
bonds to be issued under the mortgage
or the general mortgage hereinafter
mentioned. The proceeds Of the lands
applicable to these bonds after the re-
tirement of the general first mortgage
bonds will be applied one-half. but not
in any one year exceeding 100000, 10
bonds at not exceeding 10 per cent ana
their cancellation; ana the remainder,
under carefully guarded restrictions,
will be used for the betterment and ad-
ditions to the property pledged as Sc
curity for the bonds.
Whenever these bonds can not be
purchased at the maximum price, the
unapplied land proceeds for that yeaF
will he used 10 purchase the general
lien per cent bonds at not exceeding
100 per cent and their cancellation
Second-General lien per cent gold
bonds, limited in amount to $60Q0U,OCQ,
in addition to reserve for the 100 per
cent prior lien mortgage OF $4,000, 600.
These bonds are to be secured by a
mortgage second in lien to the prior
lien mortgage and covering the same
property.
Third-Preferred stock per cent non
cumulative, limited in amount under
the plan to not exceed $4,000, 600, which
amount can be increased only with the
consent of preferred and common stock
holders, as provided III the plan. Each
share of this preferred stock will be en-
titled to non-cumulative, preferential
dividends out OF surplus net earnings
to the extent Of 4 per cent per annum
without deduction In any fiscal yeaF
in which per cent dividends shall have
been declared on both common and pre-
ferred stock all the shares shall particl-
pate equally in any further dividends
for such year. After the termination OF
the voting trust, the preferred stock VIII
have the right to elect majority OF the
board OF directors of the new company
whenever for two successive quarterly
periods the full and regular quarterly
dividends at the rate of 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 III part at
par from time to time upon the 1st day
of January during the next 20 years.
Fourth-Common stock to the amount
of not exceeding $S0,o00,000. In further
ance Of the independent reorganization
and the administration of the property
and it's securities, both classes of stock
of the new company Except such
shares as may be disposed Of to quail
flied directors are to be vested IN the
following five voting trustees, viz: j.
Pierpont Morgan, George Siemens, Au-
gust Belmont, Johnston Livingston and
Charles Lanier. for five years, although
in their discretion the voting trustees
may deliver the stock at an earlier date
The prior lien bonds are to be appro.
priated approximately is follows: TC
retire an equal amount of general frs
mortgage bonds, $41,S79,000; to provide
tor the conversion ard, as far as neces
sary, for the sinking fund OF the genera
first mortgage bonds, 1867 $50: for the
payment of receivers certificates and
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