Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-09-10
HOW IT Is.
\ Banker Explains Exactly What the
Union Pacific Debt Reiunding
Plan Is.

New York, Sept. 9.-SOme miSapprehen
sion appears Ia have existed in lin;.ucid
circles is to the plan 10 be pursued for
carrying the floating debt of the Union Pa
citc railway company for the next three
years. II mas been stated. OF 1T any rate
supposed, that the syndicate At the HeLd
o which : J. PierlcpUnt Morgan OF DreXel,
Morgan i Co. would advance the money
necessary to take up the loans and hold the
coMpanY'S collateral therefor which Is now
held by the Coupany's creditors dud the
nominal value of which Is al least
twice the aToUut Of the loans One of the
bank presidents said however the other
day to 4 reporter that such was not the
plan of the syndicate: The plan which j.
to be adopted" SAID This bank official
is for the various banks. trust
companies and other corporations
and individuals having loans Of the
Union Pacific 10 agree 20 accept the
company notes IL three wears at - cents
On tine dollar and bearing t per cent Interest
in payment OF SAID loans. surrcnucriug their
CulIdtGrd.s which are 10 be placed IN escT"t
with Il syndicate, on trustees more proper.
speaking. Of whUG. Morgan would be the
chief. l. Is these creditors, holders of the
loan, who We're expected 10 sign the a2rne-
mcut 10 that effect to-day. as | am IN
formed. The syndicate i, not 10 put
up Il dollar. The loans aggregate about
ol@OUOOOU, but whethvrthC holders OF them
nave agreed 10 sign The agreement | do
nou know. OF course - such OF The dc
posted collatcralS appreciate IN value and
reach point III which they can De
disposed OF with advantage 10 IN" rdlrodn
company, the syndicate l. 10 sell them and
TAXI up the notes issued against them pro
rata. HE banks and r"S, companies
having loans may not ike 10 lie up so iAH-h
money Tor three years, but a. notes are 10
be issued at .? ana bear = per cent Interest,
they viii have about =. per crrt,
which is not a bad inv rSrment. In
all there is about Sl4.0O0,OO0 owing TO The
banks and trust companies in this city
ami brooklyn. One trust company holds
SlOOO,U0O, another SiOO.0OO. DreXci, Nor
gan y Co. will get nothing Tor their
trouble except glory. The Union Pacific
railway company will put some clefha III
their Office TO assist in the clerical Work,
but neither Moran uo.' his firm VIII set
dollar out of the business"
This explanation Of the plan for carrying
the floating deb; of the Union PACING was
confirmed II the cOmpan. $ Office, ana also
BY Russell sage, one of the directors, ANA
Sidney Dillon, president Of the company:
II WAS further learned that holders of
three-fomths Of the $l9.UOO.nOO OF loans
had agreed 10 the pian and also that the
notes sc-called would really be IN
the shape of certificates or bond>
with interest bearing coupons attached.
The report that meeting WIS 10 be held
to-day 70 complete the agreement was de
MED. Sage said the notes would be en-
graved ana listed on the stock exchange.
Dillon in reply to Il question of the re
porter said that the notes would not be
listed on tEc stock cNcnange unit. they
were at par, and from the way people
We're trying to get them he did not
thing that would be long. The success of
the plan he said was assured and as fast Is
tie notes could ne got ready the plan would
20 into effect.