The New York herald., 1921-03-26
s2sO,OOO,OOO ISSUE
is NEW c. B. B.&Q.PLAN
Great Northern and Northern
Pacific Ask /. G. G. sor
Joint FlOtatiOn.
Ipeoia, Despatch to THE NEW sorK HERALD.

Special Despatch to THE New FORK HERALD.
New York Herald Bureau,
Washington. ID. c.. March rs. !
A new plan for refunding July l the
s215. 10000 joint bond issue OF the
Great Northern Railroad and the North
ern Pacific Railroad was filed with the
Interstate Commerce Commission to-
day. The proposition submitted supple
ments the general financing scheme re-
Gently submitted to the commission.
which was in part turned down.
The commission had approved distri-
button of the surplus OF the Chicago,
Burlington and Quincy. another of the
Hill lines, but refused authority for the
bond Issue as provided at that time. The
new plan was submitted after confer
ences between the commission and rep
resentatives Of the various Hill lines in
volved.
1t proposes an issue Of Joint converti-
BILE bonds to the amount of $230.0O0, 600
and secured by 1.65S,674 shares of stock
Of the Chicago. Burlington and Quincy,
owned by the two railroads. The roads
further proposed to issue S33. 100000 OF
Northern Pacific refunding and improve
ment mortgage per cent. bonds and
S33,000,000 Of Great Northern general
mortgage per cent bonds as additional
security for the issue OF $3.50, 100000 OF
joint bonds.
The original plan OF the Great North
ern and Northern Pacific TO meet the
maturity of S215. 100000 OF the Buriins-
ton joint fours on July /. 1921, provided
for the issuance Of $S0,000, 900 of bonds
by the Burlington, the proceeds OF
~. - tA Nn1.thnrn l.
cific and Great Northern roads and be
applied on the $215. 900 Of indebted
ness. This plan. however, was upset .,
the commissions refusal to authorize
the Burlington to issue the proposed
bonds. After the commission had made
its decision several conferences were
held by the representatives of the Great
Northern and Northern Pacific railroads
with the commission relative to plan
TO meet the maturity date of the $215,-
600. 900 of outstanding indebtedness.
Details of the Issue.
As outlined by the attorneys for the
carriers the nature OF this application
and the purposes and uses Of the pro-
posed issues of securities are:
(a) Approval of joint trust inden-
ture to be dated on or before July 1,
1921, to be executed by both applicants
to the First National Bank of New YORK
as trustee. to secure $230,000.000 OF
Northern Pacific-Great Northern joint
fifteen year 61a per cent. converuole
gold bonds. callable in whole or in
amounts of not less than $5,000.0OO
principal, on seventy-five days notice
at 103, with other provisions and terms,
including convertibility into bonds OF
either or both the Northern Pacific Rail
way Company and Great Northern Pa
c.fic as more fully stated in the joint
trust indenture. and approval OF the
issue on or before July /. 1921, OF the
said Joint bonds to the amount OF
$3.50, 100000
(b) Approval OF the pledge as col
lateral under said indenture OF l,65S,6 4
shares of the capital stock OF the chi
cago, Burlington and Quincy Railroad.
owned by the applicants and now sup1ect
to prior pledge under the indenture Sc
curing the outstanding joint fours de-
scribed in B.:
(D Hereof also the issue and pledge
as collateral hereunder OF $33,0o0.000,
principal amount, OF refunding and inn
provement mortgage 6 per cent. bonds
series B, Of the Northern Pacific Kali
way Company, due July /. 2047, callabie
after fifteen years on any interest date
on three months notice. at ITO; also the
issue and pledge as collateral thereun-
der of $33, 900. principal amount, OF
general mortgage per cent. bonds, Sc
ries A. of the Great Northern Railway
Company, due July /, 1886. non-callable
(c) Approval Of general gold bond
mortgage Of the Great Northern Rail-
way Company. to be dated January 1,
1921, to the First National Bank of New
York as trustee to secure bonded in
debtedness as provided therein;
(d) Approval of the issue by each ap-
plicant under its said mortgage in event
either of payment of joint bonds issued
under and secured by the indenture. ex-
hibit A, or conversion thereof into mort
gage bonds against deposits and pledge
of stock of the Chicago. Burlington and
Quincy Railroad Company.
Plan Sale Before July 4.
The plan proposed is to issue and sell
the new joint bonds on or before July
/ through a contract to be made with a
syndicate of bankers upon the syndi-
Gates undertaking to provide the money
which will then be required to pay the
outstanding 4 per cent. bonds. No such
contract has been made and none Is
expected to be made until approved by
the commission.
ST. PAUL, March 25.-The Northern
Pacific and the Great Northern railroads
will apply to the Interstate Commerce
Commission for permission to issue
$3.50, ,00o. 900 in joint bonds to refund the
s215. 900, 900 of Chicago. Burlington and
Quincy Railroad bonds maturing next
July. Il was announced here to-day BY
Ralph Budd, president of the Great
Northern. The proposed issue would
bear 6ia per cent interest and run for
fifteen years from next July.
CUSTOM HOUSE RECEIPTS.