New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-07-01
RAILWAY REORGANIZATION.

THE KANSAS PACIFIC RECONSTRUCTION.
A SCALING or BONDS PROPOSED NJ TiiL SYNDICATE.
The Reorganization Of the Kansas Pacific
Railway Company, in the hands OF irerS, has
been again delayed by Of tao plan ~ adjust
ment agreed TO by bondnods Of the Denver Extension
mortgage and the preseutarion OF uew prop
ostlon per cent lower than the FIRST one
offered by the Union Pacific Railroad Company Tho
committee OF bond oIders has reported to the as
senting holders OF the Denver Extension mortgage
bonds which with accrued interest. funded and AN
funded, amounted on May 10 SS.2OnOO0,
The committee reports that 1t had been In negotiation
for several weeks with the principal holders Of the
junior securities Of the Kansas Pacific Railway Com.
pany organized as syndicate pool, and plan had
been placed in the hands OF attorneys TO
submitted to the bondhoders 20 the following effect
$40 gold for each bond of $1,000, accompanied by tho
certificate of SS7 so aud the unpaid coupons and 81 10
gold for each certificate Of $685. being payment on ac
count made upon the deposit Of the bonds aud GER
cates per cent gold interest payable semiannually.
accruing from August for five years At the expiration
OF five years. sooner az the option OF the syndicae
cash payment be made equal TO 80 per cent OF the
asserting bonds and unpaid interest $50 per cent OF
Sc, 100000 equal 20 S6400000; or IN lieu thereof.
S. 000OOo new per fty-years gold bonds TO be
issued by the Union Pacific Railroad Company and
secured by the property under the Denver Extension
mortgage part Of the arrangement that the syn
dictate should Immediately the back interes on tho
and the OF $4,000 toward the expenses OF the t
CATION and settlement The asserting bond1oiders were
TO deposit their bonds in the United States Trust
Company, and 10 receive certificates OF equal
amount with and representing the bonds and coupon
certificates deposited less the cash payment made az
deposit, bonds and coupons TO be held by
the Trust Company for the security OF the persons IN
interest. .
Tne syndicate was to deposit immediatelyiin the
United States Trust Company 100000 Denver Exten-
sion bonds with certificate OF SS7 so accompanying
each of 900 and the unpaid coupons and 20 de-
posit the further sum of 100000 Of said bonds
with the like certificates and unpaid coupons
in six twelve Zoo and eighteen months mt ce Rss3s
asserting bondhOlders IN case OF the noniunment OF
the terms the part Of the syndicate This arrange
ment was go into effect when twO-Jhrds or the out
standing bonds and coupon certificates latter deductng
the first $50OOo0 deposit of the syndioate) mad been
Kansas Pacific Railway was to continue TO protect
bOndhOders and 10 payment OF the interest on the
bonds the receiver be empowered however, 70 turn
over the management OF the road TO the syndicate but
TO retain control OF the earnings OF the road Tor the pur
poses Of this arrangement 80,
Lawrence Kansas. 1t ordered that the following
plan should be submitted TO the bondhOlders:
States Trust COMPANY 100000 of Denver Extension
bonds the bondhOders deposit within thirty days
coupons and certificates and more than S3OOOOOOb DO
deposited the security Of the syndicate TO oe proper
onally increased. The deposit OF tho S30OOOOO 10 DO
subject TO the control and " become the absolute prop
erty OF the syndicate performance OF the following
e Ss e, bonds pay deposited se@snnuay
C9 To pay holders OF THESE bonus
within five years rs per cent cash for the bonds or to
issue per cent first mortgage bonds, secured by mort
gage on the property covered by the Denver Extension
mortgage fun amount OF the bonds, the entire
exceed S. 100000 and the bonds 20 be iu-
ther secured by guarantee " the Union Pcic Road
60 II these conditions are not kept Dy the ynocatc the
100000 in bonds Is to be forfeited l4l Inc ogectOl
troll the pending foreclosure suit and TO buy IN the PROB
and TO acquire perfect title by paying 70 tle nom
asserting b0ndnoders pro faa proportion VI sueh Su
the property may bring.