The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-03-16
n. P. REORGANIZES.
4 Forty-hve Million Syndicate
Provides the Cash.


mornings pewspaperS O. this city n The
form Of en advsrr1semsnt over The sigma
ture Of J. p. MORGAN 4 Co., OF New York:
Drexsl 4 Co.. Of Philadelphia, and the
De1tschs bank. of Berlin Further details
regarding the plan VIII Be given out tomor-
row. The circular. a. e. viii appsar. pro-
poees ths creation OF the following new
securities:
First-Prfof lien 1oo-year per cent gold
bonds. S110. 0oc. 900. These bonds are 10 be
secured by . marriage upon the main line.
branches. terminals and grants. equipment
and other property embraced In ne reor-
ganfzatton, rs carried out. and also all
other property Thereafter acquired by the
use OF any bonds to DO Issued under the
nortgaxe or the general mortgage herein
after mentioned. The proceeds O. the lands
applicable 10 these bonds. after the retire
meni OF the general first mortgage bonds.
viii De applied on behalf. out not IN any
year exceeding s5s9.eoo OF the purchase OF
the prior lien percent bonds. Al not
exceeding 40 per cent. and their carcella-
ton: and the remainder. under carefully
guarded restrictions. will be used for the
octterment and additions to the property
pledged as security for the bonds. When
ever these bonds cannot B. purchased at
the maximum price. the unappiied land
proceeds for that year viii be used to pur-
chase tho general Lien per cent. bonds at
not exceeding 100 per cent and their can
csliation.
Sscond--General Hen 15o-ycar per cent.
gold bonds. limited In amount TO 0.0Jo.-
co. in addition 90 the reserve for 1Oo-y.sr
Per cent. prior lfel mortgage OF SIP. co.
00e. These bonds are TO be secured By
mortgage second In lien 10 the prior lien
mortgage and covering the same property.
Third-Pseferred stock. per cent. non
cumulative. limited in amount under the
plan to no. exceed 75.eoo 600. which amount
- .4.~ .Lst. -.
preferred and common stockholders. rs
provided in the plan. Each share OF this
preferred stock will be entitled 10 non
cumulative preferential dividends. ont OF
surplus net earnings. 10 the extent OF
Der cent per annum without deduction.
In any fiscal year in which per cent.
dividends shall have been declared on Goth
common and preferred stock. all the shares
shall participate equally in any further
dividends for srh year. After the ter
mination OF the voting trust. the preferred
stock will have the right 10 elect a major
fly Of the board OF directors OF the new
company. whenever for two successive
quarterly periods the fun and regular
quarterly dividends. at the rate of 4 per
cent. per annum. are not paid in cash. The
right will be reserved 10 the new com
pany TO retre this stock. in whole or IN
part. at par. from time 70 time. upon the
FIRST day Of January. during the next TWEEN
~ years.
Fourth--Common stock TO the amount Of
not exceeding sSa.o0a.o00. In furtherance
Of the independent reorganization and tho
administration OF the property and Its Sc
curities. both classes OF stock OF the new
company texeept such shares as may be
disposed OF TO qualify d'rectors). are to be
vested In the following FIVE voting trus-
tees. viz: J. Pierpont Morgan. George Sic
mems. August Belmont. Johnston Living
ston and Charles Lanier. for five years. al
though in their discretion tho voting
trustees may deliver the stock At an earlier
date
Tho prior lien bonds are to be appropriate
81 approximately a. follows; To retire an
equal amount of general first mortgage.
SAL 900: to provide for the conversion.
and. a. far ~ necessary. for the sinking
fund OF the general first mortgage bonds.
sisas7.sSo: for the payment Of receivers
certificates ana equipment trust. and for
.he conversion Of the collateral trust notes
and tho general second mortgage bonds.
sio.o $50: total present issue under the
plan estimated at ee.bs7. 600.
Reserved to provide at their maturity
for an equal amount OF bonds Of tho st.
Paul and Northern Pacific Railroad Com
ranS. s., i230o: estimated amount to be re-
served for new construction. betternent
OF equipments. etc, and 10 the extent Of
not exceeding 81. 800. coo per annum. ses. ooc.-
Tho general lien bonds are 10 be appro-
priated approximately as follows: For the
conversion OF the general third mortgage
bonds, dividend certificates and the consoli-
dated mortgage and branch line bonds I'M
der tho plan. sis.O.a.oo Estimated amount
20 he reserved under carefully guarded re-
stris'lons I'm the mortgage for new con-
struct,cn. betterments, equipments. etc.
100000. Total issue IN excess OF prior
Hen bonds estimated nj $50 nnN 600 Re-
served 90 provide for tho prior lien bonds
at their maturity IN 100 years. $3.50. 90 ooo.
Maximum amount OF both mortgages. $780,
oo 90
The preferred stock Is 70 he appropriated
approximately as follows. For conversion
and adjustment OF various main line aud
branch line mortgage bonds and the de-
faulted interest thereon and other purposes
as provided I'm tho plan. 81. rso ooN EST
mattel amount which may be used for re-
organization purposes or may he available
"a treasury asset Of tho now company.
s. fN.0,1
The common stock 70 20 be appropriated
approximately rs follows, For purposes
Of reorganization. sS provided IA tho plan.
S5,eea. Estimated amount which nav
70 used for reorganization purposes. or NAV
lc available a. n treasury asset OF tho
new company. s2.HN.eon
The basis OF exchange Of existing bonds
General nrst mortgage bonds. cash : per
cent. payable April I. 1885, repres antinr
the coupon due July !. 1896: rev prior len
mortgage hOnlc. rs per cent: general sec
ond mortgage bonds. cash per cent. pay
able sixty days after plan shall have been
declared operative: new prlor Hen. ltSls
per cent: preferred stock trust ccrtinra.rs
~ Per cent; general third mortgage honda
cash per cent. payable sixty DAYS after
the plan has been declared operative. new
general Hen TnortsHEe bonds. iiSia Per
cent; preferred stock. - per cent
Dividend certificates. cash : per cent
PAYABLE sixty days after the plan has been
declared operative; new general hen lis
per oNnt preferred stock 50 per cent: cor
scliaatcd mortgage bonds. cash IA p,r
cent. payable sixty days after the rlan
has been declared operative: new general
fund. e2s Per cent: preferred stock. esis
per cent. collateral trust notes cash ?
per cent. payable per cent. May l. ~;
per cent, January. iS',. new pricr .irn.
leN Ter cent. preferred stock. - per cont
Northwest equipment stock. cash io3 r,r
cent. payable at any time In the diS,re-
tion Of the ruAnsEers. or before scnlp'e-
ton 81 reorganization. Vita Interest ~ Z
Per cent. per nrnisn from June J. is.S
nepcsitors OF preferred stock Tor pay
men; Ter ssim equal 10 SO Per share pre-
terrea stock 50 rcF cent corr
uca stock 80 per cent peHositN~s Or
common stock for raym~nt % A sas, c13si
80 SIS per share. COMMON stock ieo neg crat.
The percentages as 60 hosas are based ,u-
on the principal amount ct irreSitsd ge-
cnri;ivs The payments ~ terostrors 81
prcfrrrca and common stock must - MA Be-
IN no, less than TIRE irsgailuyvts Al least
thirty DAYS aparI
The new bonds vii - 81 c0urcn gcrn,
for sEa and s. ~ each. Win rleht 81 con
version into registered hou8s 80 8 go ars