The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-01-02
Mp. PFD. IS RETIRED
Formal Notice to That Effect Made
in New York.
BONDS OF 1901 TO BE CONVERTED
They Must BE Exchanged for. COM
mon Stock Within the
Year.

New York, Jan. 2. - Northern Pacific
preferred stock has ceased to exist. FOR
NAL notice of it's retirement was made IN
New York last evening. This enos the
Northern Pacific episode which has been
the big topic in financial circles during
the past eight months. The offices of the
company transacted an enormous business
yesterday. Vice President Dan s. La
mont was in charge. BY night $60, OOO,OOO
OF the $4,000, 900 preferred stock Of the
company had been surrendered, paid for
and cancelled. This amount does not
include the stock redeemed abroad. A
circular is being mailed to all stock
holders to-day announcing that all hold
ers Of preferred stock certificates Will De
paid the par value Of the stock upon pre-
sentation Of the certificate. The circular
further states that payment OF these Ger
tificates Is the only claim that preferred
stock holders have upon the company.
This makes the capital stock Of the
Northern Pacific $155 100000, all repre-
scented In common.
"Common" for 1901 Bonds.
simultaneously with the retirement Of
Its preferred stock the company has is
sued notice to the holders Of its 4 per
cent convertible bonds, dated Nov. 10,
1901. informing them that the company
has elected to require the holder or every
such certificate to convert the same into
common stock of the Northern Pacific
company at the rate Of one share OF $l0O
for each 500 of the unpaid principal OF
the certificate and upon presentation and
surrender of such certificate at the office
of the company the holder will be entitled
TO receive therefor common stock or the
company at the rate aforesaid No inter-
est will accrue or be payable upon any
such certificate from and after Jan. l,
1901
1o~ Of 70
sererd stock has been in the custody OF the
Company for a number OF days past, and 1t
IS also true that the money to redeem 1t
has been in the treasury Of the company.
AS is we'll known, practically all OF the
common stock has been held by the Hill
Morgan and the Union Pacific interests.
and they did not wait until to-day to avail
themselves Of the right to subscribe to
the per cent convertible bonds, and thus
provide the funds for the redemption OF
the preferred stock.
A Big Check.
One check for over $34.OOOOOO in pay
ment Of subscriptions to the convertible
bonds was turned over to the company
last Monday, and 1t Is known that at that
time more than rs per cent Of the pre-
ferred stock has been deposited with the
company for redemption.
In view Of the comparatively small
amount Of Northern Pacific preferred
certificates now outstanding it is plain
that the redemption Of that stock has
ceased to be possible disturbing factor
In the local money market. 1t is note
worthy that the transaction has caused
hardly a ripple in that market. This is
due to the manner in which it has been
financed and also to the fact that the
holders of fully two-thirds Of the pre-
fe1red stock we're also large holders of
the common stock and therefore supplied
the funds for the redemption. TO that
extent the transaction was largely mat
ter Of bookkeeping and an exchange OF
checks between the interests referred to
and the company.