The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-03-16


circular in connection Herewith will
appear in tomorrow mornings papers
in this city in the form of an advertise
ment over the signature of ]. P. Nor
gan & Co., 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 as it will appear pro-
poses the creation of the following new
securities
First-Prior lien 100 year per cent.
gold bonds, $3.50, 100000 These bonds
are to be secured by mortgage upon
the main line, branches, terminals, land
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 retirement of
the general first mortgage bonds will
be applied one-half, but not in any
purchase Of the prior lien per cent.
bonds and not exceeding ITO per cent.
and their cancellation; and the remain
der under carefully guarded restric-
lions, will be used for the betterment
and additions to the property pledged
as security for the bonds.
Whenever these bonds cannot be pur-
chased at the maximum price, the I'M
applied land proceeds for that year will
nSP6 a
per cent bonds at not exceeding 100
per cent and their cancellation.
Second-General lien $50 year 8 per
cent gold bonds, limited in amount to
$50, 100000 in addition to reserve for
the 100 year 4 per cent. prior lien mort
gage of $4,000, 900. 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, un-
der the plan, to not exceed STE, 600, 600,
which amount can be increased only
with the consent of preferred and COM
mon stockholders, as provided in the
plan. Each share of this preferred
stock will be entitled to non-cumula-
tive preferential dividends out of the
surplus net earnings to the extent of
per cent. per annum without deduction
In any fiscal year in which 4 per cent
dividends shall have been declared on
both common and preferred stock all
the shares shall participate equally in
any further dividends for such year.
After the termination of the voting
trust the preferred stock will have the
right to elect a majority of the board
of directors of the new company when
ever for two. successive quarterly perl.
DDS the full and regular quarterly divi-
dendS, at the rate of per cent. per an
mum are not paid in cash.
The right will be reserved to the new
company to retire this stock, in whole
or in part, at par, from time to time,
upon the first day of January during
the next twenty years.
Fourth-Cemmon stock to the amount
of not exceeding $50, 100000. In further
ance of the Independent reorganization
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 quail
lfy directors) are to be vested in the
following five voting trustees, viz: j.
Plerpont 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
appropriated approximately as follows:
TO retire an equal amount of general
first mortgage bonds, Sal, S79, 600; to pro,
vide for the conversion and, as far as
necessary for the sinking fund of the
general first mortgage bonds, $14,657-
65O; for the payment of receivers GER
t1flcates and equipment trust and for
the conversion of the collateral trust
notes and the general second mortgage
bonds, $40,040,35O; total present issue
under the plan estimated at $50, ST., GEO.
reserved to provide at their maturity
for an equal amount of bonds of the
St Paul & Northern Pacific Railroad
company, $S,423,000; estimated amount
to be reserved for new construction,
betterments, equipment, etc, and to
the extent OF not exceeding $i,500,00O
per annum, $25, 900 600; total authorized
issues, S1S0000,000. The general lien
bonds are to be appropriated approx
mately as follows: For the conversion
OF the general third mortgage bonds
dividend certificates and the consolj-
dated mortgage and branch line bonds
under the plan. $4,000, 600. Estimated
amount to be reserved under carefully
guarded restrictions in the Inortga ea
for new construction, betterments.
equipments, etc, $4,000 O0 Total issue
in excess of prior lien bonds estimated
at $50 DOC, 600 Preserved to provide for
the prior lien bonds at their maturity
in 100 years. $3.50, 600, 0o0 Maximum
amount of both mortgage $3.50, 0O0. 900.
The preferred stock is to be appro-
priated approximately as follows: For
conversion and adjustment of various
main lire and branch line mortgage
bonds and the defaulted interest there
on, and other purposes as provided in
the plan, 72,000,00 Estimated amount
which may be used for reorganiza ton
purposes or may be available as a
treasury asset of the new company.
81, 500, 000
The common stock is to be appro-
priated approximately as follows: For
purposes of reorganization, as provid-
ed in the plan $75,500,O00. Estimated
amount which may be used for reor-
ganization purposes or may be avail
able as treasury asset of the new |
$2,500.0 900.
The basis of exchange of existing
bonds and of sale of new stock is as |
follows: General first mortgage bonds. |
cash 3 per cent, payable April /. 1896.
representing the coupon due July /,
1896; new prior lien mortgage bonds !
135 per cent
General second mortgage bonds. cash I
4 per cent. payable sixty days after
the plan shall have been declared op- |
erative. new prior lien, 1852 per cent;
preferred stock trust certificates so per
cent.
General third mortgage bonds, cash
8 per cent, payable sixty days after I
the plan has been declared operative, |
new general lien mortgage bonds 1881 |
per cent, preferred stock so per cent
Dividend certificates, cash per cent, |
payable sixty days after the plan has |
been declared operative, new general |