The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-06-29
RAILROAD TROUBLES.
KANSAS PACIFIC RAILWAY AND THE DENVER
EXTENSION BoNDHoLDERs

KANSAS PACIFIC RAILWAY AND THE DENVER
EXTENSION BoNDHoLDERs.
II Is reported on good authority that trouble is
brewing between the parties interested in the
gan;z ,tiou OF the Kansas Pacific Railway and the
holders OF the socaed Denver extension bonds, who
have a lien upon the road. An agreement had sub
staninlly been concluded between the parties and in
tact everything had been settled except tho drawing
up OF the legal documents Some parties, however,
who are Interested in the reorganization OF the Kansas
Pacific Railway, It 10 said, held candestine meeting
lately IN Kansas, and, notwithstanding their agree
with the holders OF the Denver extension
ponds. determined alter the plan OF settlement.
committee OF the Denver bondhoiders IN this city
have been watching lheir movements and intend to
expose them in = circular, which will probably DO
Issued tomorrow.
The first states that the holders tho
standing $780, 900 OF Denver extension bonds which
with accrued interest," funded and unfunded
on May TO more thar So, 200 600, TO receive
Frst-Forty dollars, IN goid Tor each one Thousand
dollar bond, accompanied by certificate Tor $S7 30
and the unpaid coupons. For the thirty hve dollar
certificates they were 10 receive 81 TO- In gold Pay
ment on account was TO be made ON deposit Of SAID
bonds ana cori,hoatss
SscoHd-Fivs por Cent gold interest, payable ssmi-
annually, commencing August !, 1875 was 10 BIO paid
for tive years.
Thiid AT the expiration OF nve years. or sooner At
the option OF the pool cash payment equal 10 eighty
per oil the amount oil bonds unpaid
est 10 be made, IN lieu thereof-
Fourfh-Eight million dollars worth Of now five per
nifty year gold bonds were 10 be issued by the
Union Pacific Railroad Company 10 the Denver extern
SION bondholoers these bonds to be secured by tho
Same properly now ON The Denver extension mort
gage bonds
these wore the propositions accepted between tho
pool and the Denver extension bondnolders. Last
week some parties IN Interest," with ut letting otncr
parties interested know anything about IT, held meet.
ipg In Kansas aud resolved 10 make another propo-
tho Denver bondh 0ders changing The entire
character OF the agreement
THE NEW DEAL.
This proposition Is ~ loliows:-The new pool
Is 10 deposit with the United states Trust Company
$500, 900 Denver extension bonds security Tor the
performances Of the ioliowing:-lhe Denver extension
b0ndnoiders 10 deposit with the United states Trust
Company within thirty days not less tnan 81, 600 DOC
oil Denver extension bonds with all unpaid coupons
and certificates belonging TO thsm, and II more tnan
So 600 900 worth are deposited in that time tue
curly OF the pool TO be increased proportionatey.
Tho deposit Is TO be made INN ediateIy subject ia
the control aud to become the absolute properly OF
tue pool Their performances, within tive years. Of
tho foowins:-
f,rs-fo pay i've per cent interest," semi-an nually,
the bonas, the hrst payment TO take effect SIX
months alter inc deposit has been made.
Sccoad-fo ply the bondhoidsrs, on or before the
expiration oil nve years, cash Tor DOnds at The rate oil
seventy I'VE cents the dollar, hat 10 issue mrs,
mortgag" i've pcr cent bonds, secured oy mortgage
ON the property covvred by the Denver extension
mo gage full amount Of bonds deposIied, the
whole Issue, however, not 10 exceed $s,OVO 600 Tue
new bonds are 10 be iurther secured ny guarantee
OF the Union PacIhc Railroad.
Third-li these conditions arc not kept by the poo
tho 5000 900 put up security TO be orieed the
dcposlors and their right 10 the properly 10 remain
Unchanged
EourA-Ihe object OF tho above Is TO enable the
pool TO control the pending foreclosure SUIT, and, d
the properly Is prousnt up Tor saie 20 become the
purchasers and regain perfect ttIe 10 The same by
tho payment oil non-assenttng bondnoiders OF tneir
pro rata proportion oil such sum as the mortgagec
property may brihg