Red Lodge picket. [volume] (Red Lodge, Mont.) 1889-1907, 1896-04-25
CONTENTION OF STOCKHOLDERS
Further Concession in the Plan Are
Probable.

New York, April 20.--The Philadelphia
papers of recent date contain advertise
ments requesting the names and addresses
of holders of Northern Pacific preferred
and common stock. These advertisements
were signed by Biddle & Ward, counsel
lors at law, Philadelphia.
The advertisement also contains the
name of John G.. Johnson, a counselor
acting for Biddle & Ward.
In a statement signed by BiddIe &
Ward, they say:
I'VE feel that under existing circum-
stances the stockholders Of the Northern
Pacific Company have to cooperate fol
the protection of their own rights with
out relying upon the company"
The following correspondence between
Biddle & Ward and Brayton Ives, presi-
dent Of the Northern Pacific, forms the
basis for the call. The correspondence
opens with a letter dated Philadelphia
April c, 1896 signed by Biddle & Ward
and addressed to Brayton Ives, president
Of the Northern Pacific Railroad Com
pany, chairman of the protective commit
tee, etc. This letter calls attention to the
circular Of the protective committee, ad-
dressed to the stockholders Of the com
panv, dated March 16, 1896, and signed by
the committee and general counsel Of
the company, which recommended the
preferred and common stockholders to
become parties to the reorganization
agreement of March 16. 1895. Biddle &
Ward then say:
"Shareholders seem to US to be asked
to sacrifice very valuable rights and In
terests without sufficient cause or ade-
uuate consideration, besides being re-
uuired to pay the respective assessments
made by the plan or be deprived Of ali in
terest in the properties Of the company
We proceed to state these objections and
sacrifces In general terms and shall be
glad to have them met
DO not both classes of shareholders who
shall become parties to the plan thereby
surrender rrevOcable rights, on the part
Of the company primarily, on their part
secondly to the avail of position and de-
frnses indicated in their circular dated
September 10, 1891, signed by yourself as
president and by proxy committee ana
addressed to the stockholders Of the com
pany, and which have recently been pre-
scr1ted on the part of the Wisconsin Cen
trail Railroad Company in the pending
consolidated suit in the case entitled the
Farmers Loan and Trust Company ct al
vs. the Northern Pacific Railroad Com
Dany in the United States circuit court
for the eastern district Of Wisconsin?
And Is not the same true in regard to the
lurisdictonal questions lately presented
by the company IN the same case in the
United States circuit court for the district
Of washington and sustained by that
court?
DO not the shareholders Of the prefer
rcd stock thereby surrender all their rights
and interests in the hnsod lands east Of
the Missouri river commonly known as
rrefnrred stock and amounting by re-
cent estimates Of the company to about
2. 500 900 acres Of an average value Of
81 per acre, $1l ,210,Gv0? Assuming the
amounts Of preferred stock outstanding to
be 800 900 shares, what consideration or
benefit are likely to accrue to the holders
of the block to compensate them from the
payment Of an assessment OF 50, go 900 and
the surrender Of the values estimated
above at sl2 100000 in all $l6,3G0Goo, ex-
elusive of said cash proceeds, their alter
native being to be forever barred and
forcclosed of all interest In The properties
Of the company? Wherein lies the equity
or advantgc to them Of such treatment
under the plan?
What disposition Is contemplated by
the plan Of the great amount of assets
Of the company not covered by tho com
panys mortgages and which will be
freed by the satisfaction Of collateral
trust notes?
In view of these objections stated, up
on what grounds do the company ani ita
officers justify their recommendation Ia
shareholders to unite in the reorganization
agreement, and what assurance have the
shareholders that their rights and in
terests will be duly safeguarded by the
corporation in the respect indicated by
these objections?