New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-03-17

III. foregoing percentages bond. arc based upon
the principal amount %, deposited securities.
The payments by depOsliors ~ Preferred and Common
stock mus, b" nnd' IN not e-' than three instruments
at days apart when md called for by adyer
uaemsnt. more fully provided In the plan
The new bonds viii be in coupon form for 500 and
81 each with right 81 conversion into registered bonds
q 81 ooo AMI $1,000 Interest Prior Lien Bonds
issicd for presen, General First Mortgage Bonds Will
star, from July l. 1901 and Will be paid quarterly. as
provided the plan. Interest on all other bonds
fnhe'her Prior Lien General i.ienl VIII start from
Isnuary l. 1887 payable before completion Of the
Reorganization.
Equitable cash VIII be made for fractional
amounts bonds md stocks accrulng 10 d"posors
with reference ~ the prcsen, GENERAL FIRST
MORTGAGE bonds may be- explained that IL IL
not suuuht In any way to enforce ~ CONVEX
sion ana the them made solely upon the be-
lief that on the proposed. such conversion while
advantageous 10 the Company also manifesty to the
advantage 4 bondholdcrs converting
The present General First Mortgage Bonds mature in
1921 but are by compulsory drawings at any
time at 30 per cent the proceeds II land sales OF
the n,ed annual contribution By the Company 70 the
Sinking Fund
These compulsory rc,emptons in the past have been
disturbing factor In all calculations FOR investment
purposes and the Inauguration q new and vigorous
policy Tor the lands may be expected from
this time forward greatly to increase the amount oil snch
redemp'loas.
In some years these rc,cmp,ions have required large
contributions the Operating Department even 10
tho extent u the entire annual Sinking Fund. a sum
which would provide for the annual interest on about
$40 Of Prior Lien Bonds as now proposed II ~
nanfesty Of holders Of General First Mort
gage Bonds obtain investment Of longer con''nu-
ace also 10 the benefit Of all subsequent seeur'
ties to diminish this unnecessarily large burden OF annual
fixed charge
conv rsion on the basis indicated In the preceding
table VIII relieve holders Ok General FIRST Mor'fhge
Bonds from these calls for redemption which prevent
i,r hing ,ha
otherwise command and also will relieve ire company
from the burden the Sinking Fund requirements and
also permit the OF portion Of the proceeds OF ihnd
solcs for benefit Of the property
The General First Mortgage bonds now outstanding are
at the rate OF about $50 per mile The proposed Prior
Lion Bonds including those reserved Tor the 81 faui ana
Northern Pacific Ionds to about S223i0 per
mile and VIII all the Equipment ana the branches
and Terminals n proposed under the Plan
The fixed charges for interest and sinking FUNDS
on the present General First and Divisional Mortgage
Bonds are at the Of siGls per mile whie II IL esu
mated Prior Lien Bonds they VIII amount 10
only s935 per mile.
syndicate 81 $4,000 900 has been formed to provide
tho amounts Of cash estimated to carry out
terms of plan Of reorganization, to furnish the
nov company with cash working capital and with sum
estimated s5.O".oOo for carly use In bet'erment ana
enlargement rs property.
The adjusted net earnings Of the Northern faclnc
System for the past years show surplus
charges under the plan Of reorganization
Of about ST. 500 per IA sufficient pay
annual dividend ~ about ~ per cent. the new Pre-
Included IN this period were the last two
fiscal years when owing combination Of unavorablc
circumstances earnings fell TO abnormally low figures
thus greatly reducing the Even for the
year not wI.hstandng tho great disadvantages under
which tho In operated. the earnings promise to
amount to a sum which would pay to per cent. div-
dend on the Preferred Stock when the property shall
been relieved legal arrangements
and excessive financial burdens. II is believed. 1t
I'm In I'm hos
earnings can be greatly Increased
holders bonds and stock affected by the plan may
now deposit their securities with either OF at our
Offices receiving therefor negotiable receipts exchange
able at any time for reorganization certificates.
Securities deposited above will not be entitled to
participate In the benefits OF the reorganization.
Holders receipts Il tho Mercantile Trust Company OF
deposited under the existing Bond
holders Agreement Of February ~. 1894. invited.
with the least possible deny 10 signify their approval OF
this plan by producing their existing receipts at Of
our Offices In order that may stamp such approval
thereon Under the OF the pan the Managers have
the right, which at any time hereafter In their discre-
ton they may exercise to exclude from the plan any
holders OF such receipts who shall conform the
quest present for stamping expressly
asserting to the plan.
Copies OF agreement plan OF reorganization
ready distribution. and nil security holders are
invited to obtain them from rs all depositors are
bound thereby without regard this circular They set
forth In detail many features which II Ia mpraccable
10 condense into this circular but which Of much Inn
portancc to security holders.
We believe that prompt, contamination Of the plan
will the best interests OF all security holders
and Will place this vast property on sound and con-
sentative basis
Any further Information connected with
the reconciliation. which may be desired