St. Paul daily globe., 1896-03-16
CREATES NEW SECURITIES.
AND VESTS CONTROL OF THE ROAD
FOR FIVE YEARS WITH VOT-
ING TRUSTEES.
GIGANTIC SYNDICATE FORMED.
With Capital of $45 100000, to Carry
Out Reorganization and Sup
ply Working Capital.

NEW 1ORh, Mdrcn 10-Ine reOr-
ganization plan of the Northern Pacific
Railroad company has been completed,
and circular in connection Herewith
will appear in tomorrow mornings pa
pers in this city in the form of an adj
vertisement, over the signature of ]. P.
Morgan & Co., Of New York; Drexel
& Co., Of Philadelphia, and the
Deutsche bank, of Berlin. Further de-
tails regarding the plan will be given
! out tomorrow. The circular, as it will
appear, proposes the creation of the
following new securities:
First-Prior lien 100-year 4 per cent
gold bonds, $4,000, 900. These bonds
| are TO be secured by a mortgage upon
the main line, branches, terminals.
land grants, equipment and other prop
erty embraced in the reorganization.
| as carried out, and also all other prop
erty thereafter acquired by the use of
any or the bonds to be issued under
the mortgage or the general mortgage
hereinafter mentioned. The proceeds
OF the lands applicable to these bonds.
a1tef the retirement of the general
Hrst mortgage bonds, will be applied.
one nan out not in any one year ex-
ceedlng $5O0,O00) to the purchase of the
prior lien per cent bonds at NOT ex-
! ceedlng ITO per cent, and their cancel
latlon, and the remainder under care
fully guarded restrictions. will he used
Tor the betterment and additions to the
property pledged as security for the
ponds. Whenever these bonds cannof
ne purchased at the maximum price
the unapplied land proceeds for that
year VIII be. used to purchase the gem
eral lien 3 per cent bonds at not ex-
| ceedlng 100 per cent, and their cancel
lation.
Second-General lien 15O-year 8 per
Sero sea oo Sodd od ponds, limited in amount to
SoO 0,O0O, in addition to reserve for
the 1O0-year, per cent prior lien mort
gage of $4,000, 900. These bonds ara
10 pc secured by a mortgage second
In lien to the prior lien mortgage. and
covering the same property.
Ihlrd-Preferred stock, 4 per cent
non-cumulative, limited in amount nm
der the plan, to not exceeding SIX OO0 :
oVo, which amount can be increa sed
only with the consent of preferred and
common stockholders, as provided In
the plan. Each share of this preferred
STOCK will be entitled to non-cumulative
preferential dividends out of the sur-
plus 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 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 hoard
OF directors of the new company when
ever Tor two successive quarterly peri
ods the fuii and regular quarterly divi-
dends, at the rate of per cent ner
annum are not paid in cash The
right will be reserved to the new COM
pany to retire this stock in whole or in
part, at par, from time to time upon
any first day of January during the
next twenty years.
Fourth-Common stock to the amount
of not exceeding $S0000 O00 In further
| ance of the independent reorga nization
| and the administration of the property
and its securities, both classes of stock
| OF the new company Except such
| as may be disposed of to qualify di-
rectors) are to be vested in the follow
| Ing five voting trustees, viz: J. Pier
| pCnt Morgan, George Siemens August
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 an
propriated approximately as follows:
To retire an equal amount of general first
mortgage bonds, Si1, ,S79 000 To provide for the
conversion and, so far as necessary for the
sinking fund OF the general first mortgage
bonds, S14,357 $50. For the payment of re-
ceivers' certificates and equipment trust and
Tor conversion of the collateral trust notes
and the general second mortgage bonds $40
O4O,35O Total present issue under the plan
estimated at $96,577.p0o. Reserved to provide
at their maternity for an equal amount of
bonds of the st. Paul & Northern Pacific rail-
road company. IS, S,423 600. Estimated amount
to be reserved for new construction, better
ments, equipment etc, and to the extent of
not exceeding $500, 900 per annum sos 600 900.
Total authorized issues, $130,000 900.
The general lien bonds are to be
appropriated approximately as follows:
For the conversion of the general third
mortgage bonds, dividend certificates and the
consolidated mortgage and branch line bonds
under the plan of $56, coo O0O Estimated
amount to be reserved under carefully guard
ed restrictions in the mortgage for new con-
stIuctlon, betterments, equipments etc, 81
100000 Total issue in excess of prior lien
bonds, estimated at $50 000,000. Reserved to
provide for the prior lien bonds at their
maturity in 100 years, $780, 600, 000 Maximum
amount of both mortgages, $3.50, ,0OO, 600.
THE PREFERRED STOCK
| is to be appropriated approximately
| as follows
! For conversion and adjustment of various
| main line and branch line mortgage bonds
and the defaulted interest thereon and other
| purposes, as provided in the plans $72 COO 600.
| Estimated amount which may be used for re-
| organization purposes, may be available
! a. treasury asset of the new company, ST.
| 500G00
The common stock Is to be appro-
priated approximately as follows:
! For purposes OF reorganization as provided
in the plan, $75.5OO,OO0 Estimated amount
| which may be used for reorganization pur-
! poses, or may be available as treasury asset
of the new company, $2,5 900.
The basis of exchange of existing
| bonds and of sale of new stock is as
| follows:
| General first mortgage bonds cash per cent
| payable April l. 1896, representing the coupon
! due July /, 1896; new prior lien MORTGAGE
bonds 1873 per cent. General second mortgage
! bonds, cash per cent payable sixty days
after the plan shall have been declared oper-
ative; new prior lien, 11Sl5 per cent; pre-
| ferred stock trust certificates, so per cent
| General third mortgage bonds, cash per
| cent, payable sixty days after the plan has
been declared nnerative. renaral