The sun., 1893-08-13

cured by tho Sinking Fund Mortgage oi
the Union Pacific Railroad Co., of De
cember rs, 1875
Tho bonds secured by tho mortgage above referred
to become due on sept 1. next. ON Jan. l. 1898
thoro were outstanding bonds to the amount Of
S5.1I6Oou At the same date there were in tho hands
OF the Union Trust Company OF Now York. iha Trus.
teo under the mortgage. uninvestod balances applca
bic to the redemption OF said bonds amounting to
Spo4 0d512. During the period from January first
to September first Of the current year 1t i estimated
that further romitances, derived from the saleb OF
land. payments on bills receivable, &C. will be made
to the Trustee to the amount OF about S5oOoOO 1t IL
believed therefore that at the maturity OF the loan
tho Trustee will In hand about ST. 05 IL for
application to such part OF tho debt may be held by
persons who may then wish to receive payment. The
application OF these sums will reduce tho debt to
f3.77l 334ss.
Against this balance ot Indebtedness the Railway
Company holds notes or contracts made by former pur~
chase of lands secured by the lands in respect Of
which they were made (Which. however. are only
leased by the Trustee on receipt by 1t of the full
amount Of the considerations the amount OF which
September first next making due allowance for collec.
tions to be made in the interval will Approximate
s338p 9o2 10 In addition to the lands under contract
the Trustee will also hold the unspid lands the esti.
mated value OF which Ia s3.o79.oOO. Thi, estimated
value is very conservative being much less than tho
appraised and selling value The value Of the security
contracts and unsod lands SO 44S ioa IS exceeds
tho estimated balance OF the indebtedness Cs3 ILL.,
334 ss by the sum OF 81, 7.507 80.
The lands referred to represent the unsod portion of
those granted to the Union Pacific Railroad Company
ito which the Union Pacific Railway Company is tho
successor by consolidation. and free from any
lien or other incumbrance excepting only debt OF
$1,000 the balance OF the original land grant mortgage
bonds still outstanding
No allowance has been made in the foregoing state.
ment for the possible failure of purchasers to com.
pete the payments provided for in their contracts
is believed. however that not more than $4oO 900 in
amount will Ultimately be defauited But even II de-
fault be made the lands under contract will again be-
subject sale and will exceed In value the
duo upon them.
Under the present MORTGAGE tho title to all unsod
lands tad to lands already sold. but still under
tracp is vested in the mortgage trustees Tho pro-
ceeds Of all land sales are remitted directly to the
Trustee and applied in the Trust 1ndenture is
provided, to the purchase and cancellation Of tho
bonds secured hereunder They do not into tho
company's treasury. Meanwhile. the taxes the
sold lands tho expenses of advertising or marketing
the lands and the interest the outstanding bonds
have been paid pursuant to the terms Of the Trust In
den,ure. by the halfway Company. and will continue
TO be pal! by the Railway Company under the extern
sion agreement.
The following statement shows tho purchases of
bonds through tho operation OF the sinking fund.- and
with tho accumuiations of land trust moneys since
they became available for the purposes OF the sinking
fund mortgage:
Original issue of bonds, SIG. 900, 900
Purchased with
sinking fund
money and
cancelled. 81 1856, 900
Purchased with
proceeds of
lnnd salcs q 300 OOO N suI OOo