The morning call., 1894-06-07
BOSSEVAIN'S SCHEME.
Plans for a Union Pacific
Reorganization.
Wants to Deliver to the Government
Bonds TO Secure the Payment
of Debts.

NEW YORK. June ca. Fl. H. Bosse-
vain, the representative of the Dutch
stockholders of the Union Pacific and aux
lllaTy lines. and an active member of the
reorganiz ton committee, will leave for
Europe tomorrow. He expects to be back
IN New York as soon as Congress will
have taken action in regard to the settle
ment of the Government debt. Bossevain
makes the following statement as to the
progress made by the Committee, which S
the first authoritative statement of the pro-
posed reorganization:
The committee has concluded that anv
plan of reorganization must be based on
a readjustment of the debt Of the United
States and that no reorganization would
be practicable until after the settlement
of the terms OF said readjustment The
debt to the United States with interest
amounts to about S70,OOO,OOO, and this
debt. together with that owing on the prior
first mortgage bonds, in all amounting to
S33, 100000, will mature at several dates
before the year 1899 and must necessarily
be provided for in any reorganization.
1t is my opinion that the system can be
reorganz'd on a safe basis and with Justice
to ali security holders, provided the claims
of the Uni ed States can bs settled sub
stantialy upon the following terms:
First-The delivery 20 the United States
OF 1OO-year bonds, bearing interest at The
rate OF per cent per annum for the entire
amount of the debt, including both prin-
cipal and interest, computed to maturity,
such bonds to be secured by mortgage
on the main line and Kansas Pacific divi-
sion of the Union Pacific Company, includ-
ing the Omaha bridge and terminals. and
sinking fund TO be provided for the
redemption of the entire issue within 100
years by annual payments after the year
1895 This will create charge of S1,4O0.-
600 per annum for interest until 1905, and
thereafter the annual charge would be
81. 49, 600 for interest and sinking fund
combined.
Second - The securities now held by
the United States in the sinking fund
under the Sherman act TO DE applied to the
redemption of underlying frst-mOrtgage
bonds, and the balance of the underlying
first-mortgage bonds, amounting to about
S20,000,000. to be extended or renewed
at a rate of interest not exceeding
3 per cent. sinking fund being pro-
vided for the redemption of these
DondS. a Dill providing Tor settlement
of the claim of the United States substan.
italy upon these terms has been drafted
by the AttOrney-General Of the United
States and has been submitted by him TO
Congress. We believe that holders Of
bonds which must be disturbed and cred
itors and stockholders interested in the
system can be provided for upon an equit-
able basis by the creation of the following
new securities:
(G)-An issue of general mortgage bonds
bearing interest at the rate Of per cent,
secured by a general mortgage covering
the entire system. subject to such mort.
cages as cannot be disturbed as TO the lien
of the United States upon the main lines
and Kansas Pacific for the adjusted deb t.
(b)-An issue OF the per cent preferred
stock.
Can issue of common stock.