The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1896-03-16
REORGANIZATION PLAN

! OF the NOTtntrl uNIllN--ii4aNii '"N'HA' "
Bond Issues.
New York, March 15.--The reorganiza-
ton plan of the Northern Pacific COM
pany has been completed and circular
in connection Herewith will appear in
tomorrow mornings papers in this city
in the form of an advertis ment over the
signature of j. =. Morgan & Co. of New
York. Drexel & Co. of Philadelphia, and
tho Deutsche bank of Berlin
Further details regarding the plan will
h1 given out tomorrow
The circular as IT Will appear, proposes
the creation of the following new socuri-
ties.
1. Prior lien 100 year per
cent gold bonds, Sl9,oC0O0o. These bonds
are to be secured by a mortgage upon tho
main line. branches, terminals, land
grants. equipments and other property
thereafter acquired by the use OF any Of
the bombs to be issued under the mort
gage or the general mortgage hereinafter
mentioned. The ploct eds OF the lands
applicable to these bonds after the
retir mcnt of the general first mortgage
bonds VIII be applied one-haif, but not
In any one year exceeding $500,d00 to the
purchase of the prior lien per cent bonds
al not exceeding 10 per cent and their cam
collation. and the r. mainder under care
fully guarded restrictions VIII BE- used Tor
the Lettcrment and additions TO the prop
tuty pledged as security for the bombs
Whenever these bonds can not be pur-
chased at the maximum price the I'M
applied land proceeds for that year can
not be purchased at the maximum price
the urapplied land proceeds for that year
viii be used TO purchase the general lien
3 per cent bonds al not exceeding 100 per
cent and their cancellation.
.. General lien $50 year per cent gold
bonds. limited in amount TO S69,Oou'OoO IN
addition 10 reserve for the 100 year per
f,t.fFr y
These bonds are to be secured by u mort
gage second in lien 10 tbs prior lien mort
gage and covering the same property.
g. Preferred stock ( per cent nOn-cumn-
lative, limited in amount, under the plan
TO ROT exceeding S75 900. 000 which amount
can be increased only with the consent
OF preferred ard common stockholders. as
provided in the plan. Each share OF this
preferred stock Will be entitled to non.
cumulative preferential dividends out of
surplus net earnings TO the extent or
In any fiscal yenr In which 4 per cent
dividends shall have been declared on
both common and preferred stock al
shares shall participate equally IN any
further dividends for such year.
After the terminating Of the voting
trust preferred stock Will have the right
90 elect q majority OF the board of d.
roctors Of tho new company whenever
Tor two successive quarterly periods the
full and regular quarterly DIVIDENDS, at
the rate Of per cent per annum are not
raid in cash.
The right win be reserved TO the new
company 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
exceeding $4,000. In furtherance, ofhhe IN
dependent ro-crEani2a ton and the admin
istratfcn OF the pronsrty and It's sccur-
tiles, both classes Of stock Of the new coiil-
many (pycept such shares as may be AS
- III
vested in tho following voting trustees,
viz; j. Pierpont Morgan, George slenah =;
August Belmont, johnson Livingston an
charles Lanier. for five years, althouSl
An their discretion the voting trustees
may deliver the stock AT an carrier d1Ie'
Tho rrlor lien bonds arc to be appropllal~
ed approximately as follows
To require an equal amount of general
first mortgage bonds. sil. $1,000. To pro-
vide for the conversion and. 81 Tar as
necessary for the sinking FUND Of me
general first mortgage bonds, sift'",p'u
For the payment OF receivers ceriliicates
ana eouipment trust and for the CONVEX
sion OF the collateral trust notes ana the
general second mortgage bonds SluptL-
go: total present issue under the pan :
tirlated at SgG ST, 000. Reserved TO pro- |
vide nj the maturity for an equal amount |
Of bonds of the ST, PAU ana NorthsIn
Pacific Railroad company SN'iSSug1. eat.-
mated amount to be reserNtl ~ ht"
hetterments, equlnmeht, ~: |
~ ,he extent az not exceeding $4,000 !
S ser annum So. oo1Oo Total authorized
issue $50. Co., 600. -
The general Hen bonds are 10 he ap-
approximately MS follows:
ITcr lie conversion Of the general thlri
rnortgaee bonds. dividend certificates ana
.hc consolidated mortgase anf ~, pr f.l,i |
iine bonds under the plan, s9suv'sy. 80, rs
mated amount to he reserved unuer calr
Fmiiy guarded restrictions in the mortsage
FOR new construction. hettermen'ss' -. T.,
lnents. etc 81 G00O0o. Tho Total issue ~ |
sxcess Of prior Hen bonds es ii sor nc |
nrior lien bonds al their maturity !. ~
ears, SIS, 10000. Maximum amount q