New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-09-26
MR.. GOULD HAS SUBSCRIBED
TAKING 81 100000 UNION PACIFIC CoLLAT
ERAL TRUST NOTES.
ALL DIFFERENCES WITH THE CREDITORS COM
MITTEE ADJUsTED-MIssoURI PACIFIC d.
RECToRs 10 MEET-sTocKs RECOVER
SHARPLY ON GOOD NEws-THE
UNION PACIFIC PLAN vIR-
TUALLY ASSURED.

Wall Street yesterday enjoyed return to rea-
son. The fear of hostile manipulation of stocks
| by Jay Gould or his followers was allayed and
encouraging news respecting the affairs of Union
| Pacific together with the announcement OF further
heavy shipments of gold from Europe impaired o
confident tone to the final movement Of the stock
market. call for meeting Of the directors
of Missouri Pacific was accompanied by suggestions
that after all dividend might be declared. The
most satisfactory announcement, however, was
that the differences between the creditors COM
mittee Of Union Pacific and Mr.! Gould had been
| arranged and that the refunding plan had been
| virtually underwritten and could be accepted as
| a success
II was stated yesterday by John A. Stewart,
| president OF the United States Trust Company
| and member OF the Union Pacific creditors com
mittee, that Mr.. Gould had consented to do what
| had been asked from him as director Of the
company and largely interested in its solvency
Mr. Stewart declared emphatcally that the Union
Pacific plan in a better shape than at any
time since it was devised Late in the day ~
was learned that Mr.. Gould had agreed to sub
scribe for 81 200. 900 of the collateral trust
notes, besides accepting the new notes for his
unfunded obligations against the company
Russell Sage is also understood TO have agreed
to subscribe $500 900. In return it is said that
|
dorsed by Mr.. Gould Sidney Dillon and Frederick
l.. Ames made by Drexel, Morgan & Co., would
be modified so as TO release the indorsers from
personal obligations and that the notes would be
exchanged on the same basis other noatlng
debt II is understood that the amount is at
least 81 ,OOO. 900 and some authorities place the
figures at 50, 100000 to So 100000. There are
believed to be large claims held by Mr.. Could
against the company which will be unlfed WIN
those of other foating-dcbt claims. The amount
of the existing notes which will be exchanged
for the new notes is estimated at from SI2'ooo'-
600 to Sl3 000, 900, leaving about S6,OOooOo OF
floating debt yet unfunded The surplus notes
TO be issued to provide cash to pay off the creditors
who refuse To accept the three-year extension
have been underwrtten by Mr.. Gould and the
bankers interested in carrying the scheme 10
success to the extent of over $3,O00,00O. This
practically assures its success.
WHAT THE NOTES PROMISE.
It was decided yesterday, however to oner the
whole amount of the new notes needed I'd nlecO
the unextended obligations to public Subscription
At the Office of Drexel Morgan n Co. copies
were furnished Of a circular advertisement o.
which the following is an extract: pursuant 10
the provisions of the contemplated Trust lndenture
dated September 4, 1891, and at the request
Of the Union Pacific Railway Company, suDscrlp-
tions are invited for S3.50000O of the SIX per
cent gold collateral trust notes, at .? Il per
cont and accrued interest Subscriptions for this
amonpt are deemed osse n by tie committee to
nrovide adequately for part of the noating deot
q, tbe company. in place of such holders as have
NOT accented the proposed plan, and upon thelr
heinc made for such amount, the plan set 1Orth
IN said ndenture for funding the floating debt
90 tho companv will be declared effective by the
committee
The notes are for $4,000 each. to bearer
or registered with right of exchange INTO
engraved coupon notes of $1,000 each' as soon as
engrayed). bear six per cent interest per annnfn
from, Aupust /, 1891, payable February ana
,ucust and the principal natures August l,
1894 unless sooner called for redemption at par
Roth principal and interest are payable IN the
oi+,, of New-York in gold coin Of the United
Ctates of the present standard of weight ana hne-
ness. ,,
s,bscrintons will he received by DreXel. Nor
ron A. Co. ND 10 the close of business next IueS-
dov but the right is reserved to close the Suo-
scriptions before that time The commitiee ohei-
inc tbe subscriptions are j. Pierpoht Morgan
Inbr 4 Stewart Edward King Frederick j. !
Ames and Alexander f. Orr. Bankers SAID yes
terdov that there had been considerable investl-
gation of these notes by investors, and the set
tlo,nent Of all differences between Mr.. Gould ana
tbo creditors' committee would probably induce an
excellent demand.
Tho 70 csta blishment of cordial relations be- |
tween Mr.. Gould and tie creditors of the Union
PociGe was not known generally in the Street |
until after the closing of the Stock Exchange. 1t
was favorably commented upon, and some brokers |
professed to see in it indications of an early change
in the position of the Gould interests IN the STOCK
market There were some usually weu-lniormeu |
men who declared that George j. Gould was sun |
short Of stocks. and they refused to believe that
even the success of the Union Pacific reminding |
plan would prevent furtier attempts to depresS |
values Others said that an escape might be pro- |
yided by private settlements, while apologists for |
the Gonlds were stout in dcnals of the truth OF |
the current talk at TO operations credited to young
Mr.. Gould. 1t is safe 10 say however that tne |
common opinion remains that in the absence ol |
his father on his recent long Western trip George
Gould and his brother Edwin were betrayed into |
speculative position adverse to the general tenn
per of Wall Street. 1t is hoped that the righting |
of this alleged position is now in the way of being
accomplished without damage TO investment in
terestS
GEORGE GOULD AND MI sSoUM PACIFIC.
An indication was found by those who argued |
that there would soon be no ground for ne |
proach to the possible attitude of the Goulds III
the changed utterances Of some of the Gould fol- !
lowing Russell Sage has been held responsible |
for the starting Of the rumOrs which led to Thurs
days crash in Missouri Pacific Mr.. SAGE denied |
Yesterday that he had been "Shorting" Missouri |
Pacific and he expressed the belief that after all
a dividend would be declared upon the stock. a
meeting of the board of directors has been called
for next Wednesday. Some of the directors are
certain 10 urge its payment but the deciding vote
of course, can be cast by Mr.. Gould and his i'm
mediate associates. A breach in the board is con-
sdered more than likely as consequence OF
the Missouri Pacific episode, unless satisfactory
proof can be furnished OF the unwise policy OF
declaring the quarters dividend Some friends Of
the company are strong ID their belief that the
finances of the company are not in the condition
oba in he usual n0licv