The sun. [volume] (New York [N.Y.]) 1833-1916, 1896-03-17
~. II. Morgan r. Co.,
2s Wal st.. New York.
DreEeL s. Co.,
9th and Chestnut sta. Philadelphia
DeMtsche Bank,
Berlin.

IS WALL STREET.
NEW YORK. March n

83 WALL STREET.
NEW YORK. March 10. 1890.
To tho Stock holders OF the
NORTHERN PACIFIC RAILROAD cot
The Protective Committee appointed by the Board
OF Directors to guard tho interests OF the Stockholders
respectively recommend the prompt adoption OF tho
Plan OF Reorganization which has been prepared by
the representatives OF a majority OF all classes Of
security holdera Inasmuch as II involves a sacrifice
on the part OF Stockholders It will not be strange IL
this Plan fails to meet with the approval of n proper
ton of those Interested. but where the problem to DO
solved involves upward OF $500. OOO. 900 of securities.
held by about ten thousand owners. IL ia impossible to
prepare a Plan which Will not be objected to by some.
The Committee believe that this Plan involves the
minimum OF sacrifice and is the best that can be car
ried out under existing conditions.
In view OF the prominence, given last year to 70.
ported efforts to reorganizo tho property on iines
which II followed out would have destroyed its In
dependence and which would have been unduly So
we're on stockholders, II is proper to say that In tho
present Plan every precaution has been taken to In
sure the preservation Of the autonomy of the Com
pany and to reorganize II on n strictly independent
basis II stockholders are called on to make con-
siderable sacrifices, they can be at least sure that
there are good grounds for expecting ultimatelya
proportionate reward. Al present the hxed annual
charges prior TO dividends upon the Preferred Stock
amount to $40, 90T. 100; while under the proposed
Plan they will be only se,O52. $50; a reduction OF
s4.S55. 1870. The total fixed charges and dividends
upon the Preferred Stock, prior to dividends on the
Common Stock. are under the old company Sl8. 726..
1854 az compared with sS952, $50 proposed under the
new Company: a reduction Of 81. T28. 1914. which 10
nearly eQualto o per cent on the new Common Stock.
In other words, while the net earnings In 1891. 02, the
most prosperous year in the history OF the Company.
were insufficient by upwards of 90. 500, 900 to pay any
dividend whatever on the Common stock. the same
earnings by the New Company would sunico TO pay
III per cent. dividends on this stock. Moreover. -
ample provision is made by the issue of bonds for
putting the road In hrstclass condition In every re-
spect. there is reason to believe that the maximum OF
earnings hitherto reached Will be exceeded In the not
distant future. The increase in earnings OF over
o., 900. 900 In eight months OF the present fiscal year
shows that the region through which the road runs
IL growing as rapidly as any part OF the country.
Given efficient management, u road equipped so as to
compete advantageously with It's rivals and ample
financial resources. Stockholders should have every
inducement to pay the assessments and to hope thas'
they may, in the future, retrieve to q considerable .
extent the losses brought on them by past mismanAge-
menG
YTON IVES, Chairman.
AUGUST BELMONT.
GEORGE H. SHELDON.
GNE TOwER JSs
sILAS W. PETIT. Counsel. 49,