The New York herald., 1921-04-26
OFFER BURLINGTON
PLAN ISSUE TO-DAY
Largest American Financing
Except Government FlOta-
tions Being Made.
TOTAL is $3.50, 100000
Consists Of Northern Pacific
Great Northern Joint Con-
vertible Bonds.
TOTAL is $3.50, 100000

States of this or any other year, with
the exception of war loans by Govern
ments. the offering of $3.50, 900, 900 or
Northern Pacific-Great Northern Joint
Fifteen year 6h per cent. convertible
gold bonds, is being made to-day. fol-
lowing yesterdays unqualified approval
by the Interstate Commerce Commits
sion. The issue is really three in one,
because the joint bonds are convertible
Immediately into mortgage per cent.
bonds of the Northern Pacific and into
mortgage per cent. bonds OF the Great
Northern up to S115, 100000 of each.
The former Is legal for savings banks
and trust funds and life insurance COM
panies In New York, and the latter Is
legal for life insurance companies and
savings banks in Minnesota. The joint
bonds secured by Burlington stock as
collateral are legal for neither.
The Northern Pacific and the Great
Northern sold the $3.50. 100000 issue to
the First National Bank OF New York
and ]. P. Morgan & Co. as heads of
the underwriting syndicate. who formed
distributing syndicate. as follows:
NEW York;. p. Morgan Co.. the First
National Bank, the Guaranty Company OF
New York. Lee. Higginson & Co., Brown
srofhers Roin Co, .aa aaisey s. Stuart Co.; f.
the Chase National Bank. the Mechanics
and Metals National Bank. the Central
Co.. Spencer Trask 4 CO.. White. Weld {
Co, Clark Dodge & Co. the New York
Trust Go Company, ps the . National City Com
Peabody 4 Co, Dillon. Read & Co., Blair
Co. Inc; Kissel. Kinnicutt & Co. J. &
ssan IN New Go or sRe fSe sank 3
change National Bank and the Equitable
pnrrnmnt nrnst Company.
Colony Trust Company. the National Shaw
-I1 mut Bank n an and Merrill. Oldham & co.
Trust and Savings Bank the Illinois Trust
and Savings Bank, the Merchants Loan
and, and Trust Company, the Central Trust Com
Savings Bank, the Northern Trust Com
,,1s psny s,n;,, and the Union Trust Company.
the Fifty-third National Bank
CLEVELAND-The Union Trust Company
and Hayden, Miller & Co.
DETROIT-First National Company and the
MINNEAP0LIs-The Minnesota Loan and
Trust Company. the Minneapolis Trus,
MLADELPHIA-Drexel & Co.. Graham,
pII.rsmnIpn rrrs9ns = Go. ,la and Gassatt { co.
and the Mellon National Bank.
ST. LOUIS-The First National Bank in st.
q, Louis and the Mercantile Trust Company.
Northwestern Trust Company and the
Merchants Trust and Savings Bank
The heads of the syndicate sent out
letters last night inviting national par
ticipation and sales OF the bonds start
actively to-day, but the books for sub
scription to the joint fifteen year 61d
per cent. convertible gold bonds at 90 "a
and interest to yield about u per cent.
will not open until Thursday at 10 a. M.
Special features Of the financing are that
discount will be allowed at u per cent.
year on the principal sum Of the bonds
from the date OF payment to July l. from
when interest on the bonds will accrue,
and that the Burlington joint As, which
mature on July /. 1921, with final cou-
pom attached. will be accepted in pay
ment at 100 and accrued interest to date
OF payment on alotments, scheduled for
on or about May 16.
Howard Elliott, chairman of the
Northern Pacific. and Louis w. Hill.
chairman Of the Great Northern, issued
yesterday the following description OF
the convertible bonds:
'~rhe Joint fifteen year 6 u per cent.
convertible bonds are to be direct and
joint obligations of the Northern Pacific
and the Great Northern and are to be
secured by n pledge OF 1,65S,674 shares
of the Chicago. Burlington and Quincy
and S66. 900. 900 in mortgage bonds Of the
two obligor companies, the deposited col
lateral being valued at an amount in ex-
cess Of 120 per cent of the principal
amount of joint 8 " per cent. bonds to
be issued.
'The joint 6h per cent. bonds may
be converted, par for par. without charge,
at the option of the holder at any time
(upon presentation not later than fif-
teen days before maturity or earlier re-
demption) into s per cent. refunding and
improvement mortgage bonds (series b
Of the Northern Pacific, due 2047 (call-
able after fifteen years at the company
option at 10 per cent. and accrued in
terest). or into per cent. fifteen year
general mortgage bonds (series A) OF
the Great Northern. due 1886 with nc
option Of prior redemptlon), or into
bonds OF both issues in any ratio be-
tween tho two which the holder OF the
Joint 8 "A per cent. bonds may desire. but
not more than st15,000,000 OF either 0
such mortgage bonds will be issuable
upon such conversion"