The Portland daily press., 1893-08-23
FINANCIAL.
The Union Pacific
Railway Company.
EXECUTIVE Department.
Boston, Aug. 8, 1898.
To the Holders of s Per Cent. Bonds
secured by the Sinking Fund
Mortgage of the Union Pacific
Railroad Co., of December1S, 1873:

The bonds secured by the mortgage above REFER
to become due on Sept /, next. On Jan. 1, 1888
there were outstanding bonds to the amount OF
S5176 900. AT the same time there were in the
hands of the Union Trust Company of New York,
the Trustee under the mortgage uninvested ba1an-
ces applicable to the redemption of said bonds
amounting to seo466512. During the period from
January first to September first of the current year,
it is estimated that further remittances, derived
from the sales of land payments on bills receivable
etc., will be made to the Trustee to the amount OF
about $500 600 1t is believed therefore, that at the
maturity of the loan the Trustees will have In hand
about 81 4O4 1885, IL for application to such part OF
the debt as may be held by persons who may then
wish to receive payment. The application OF these
sums will reduce the debt to 1911, 334sS.
Against this balance of indebtedness, the Railway
Company holds notes or contracts made by former
purchasers of lands secured by the lands in respect
of which they were made which, however, are only
released by the Trustee receipt by it of the full
amount of the consideration, the amount of which
on September 1st next, making due allowance for
collections to made in the interval, will approx
mate So 1863 ,9O21S In addition to the lands under
contract the Trustee will also hold the unsod lands,
the estimated value of which is S3.079,o00. This
estimated value is very conservative being much
less than the appraised and selling value. The
value of the securty-contracts and unsold lands
So 44s eo2 49, exceeds the estimated balance of the
indebtedness (ss,771,3s4,ss) by the sum of
81, ST., $3.50.
The lands referred to represent the unsod portion
of those granted to the Union Pacific Railroad
Company to which the Union Pacific Railway Com
pany the successor by consolidation and are free
from any lien or other encumbrance, excepting only
| debt of $4,000, the balance of the original land
grant mortgage bonds still outstanding.
No allowance has been made in the foregoing
Of has
| complete the payments provided for in their con-
tracts. 1t is believed, however, that not more than
| 100000 in amount will ultimately be- defaulted.
But even if default be made, the lands under con-
tract will again become subject to sale and will
exceed in value the sums due upon them
Under the The title to al rnsod
tract vested din, int5e mortgage trustees The pro
ceeds of land sales are RENTED directly to the
provded to the purchase and cancellation Of the
| bonds secured hereunder. They do not pass into
the unsoid lands the expenses Of advertising
keting the lands and the interest the outstanding
ps The RWay Co Ip and viii
| continue to be paid by the Railway company under
| the extension agreement.
Holders of the bonds asserting TO the
proposition to extend are requested to i'm
| 1mediately send their bonds to the Union
| Trust Co., No 80 Broadway, New York, or
| to its agent at the office OF the Union
Pacific Railway Co., No 81 Ames Building,
| Boston. Mass, for the purpose of having
| the bonds stamped and to enable the
| company to affix to coupon bonds the new
coupon sheets. The Trust Company will
| issue its receipts for all bonds thus deposit
| ted and will hold said bonds until such a
number thereof have been deposited or
their extension guaranteed, as will enable
| it to announce that the total amount of
| bonds has been provided for. When the
registered bonds shall have. been stamped,
the interest thereon will be remftted to the
registered owners, as has heretofore been
the practice.
To enable the company to complete its
arrangements and to affix to the extended
coupon bonds the necessary coupon sheets,
holders of such asserting bonds are re-
quested to present them as soon as possible.
The September interest on bonds present.
ed for extension will be paid on the
presentation of such bonds for debosit.
THE TIME FOR EXTENSION OF
BONDS UNDER THIS OFFER is LIMIT
ED TO SEPT. LIST, AND THE AMOUNT
THAT CAN BE EXTENDED is LIMITED
TO $3, 100000.