Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1894-05-03
MUST SQUARE UP.
Bill Prepared for the Adjustment CT
the Union Pacific Com
pany's indebtedness.

pauy 1HucDtStlucSS.
WASHINGTON, D. c., April o6.-At-
torney-General Olney to-day sent to
Congress the draft of bill prepared by
the Department of Justice as the repre-
organization of the Union Pacific Rail
road Company and the re-adjust-
ment of the claims of the United
States against that company. The
bill authorizes the secretary
of the treasury, with the approval of
the President, to receive in exchange
for and in ultimate discharge Of the
present claims of the United States
against the Union Pacific Railroad
Company and the liens of the
United States on the railroad prop
critics of said company, the bonds of
said Union Pacific Railroad Company to
an amount equal to the aggregate of the
Indebtedness of said company to the
United States on the LIST day of July,
1894, for the principal and interest of
the bonds of the United States issued
in aid of the construction of the North
ern Pacific and the Kansas Pacific rail
roads, which bonds SO to be received by
the United States shall bear interest at
the rate of per cent. per annum and
shall be secured by mortgage as herein.
after set forth. Such aggregate amount
shall be computed and ascertained rs
follows:
l. TO the total amount of principal of
said bonds of the United States shall be
added the interest which shall then have
az n fhprn-
after payable by the United States thereon
until the respective dates of the maturity OF
said bonds as if no payment had been made
or credit given thereon.
2. From the aggregate amount so asccr-
tanned shall be deducted any and all pay
ments or credits upon the said Indebtedness
to the United States, as shall appear in the
bond and interest accounts of said compa-
MES respectively the with United States as
of July l, 1894.
3. The present worth of the balance
found shall be computed as of July |, 1894,
by discounting the said balance at the rate
OF per cent. per annum for the period be-
tween said last mentioned date and the
average date of maturity of said bonds of
the United States The amount SO COM
puted and ascertained shall be deemed to be
the amount due to the United States on
July l, 1894, and the bonds OF said COM
pany shall be received by the United States
as herein p~oV~>>d>t par for said amount.
The bonds to be received by the
United States are to run 100 years, to
mature July /, 1894, and to draw per
cent. per annum interest. The bonds
shall be secured by a mortgage cover
ing all the property-real, person.
al and miXed-ot the railway COM
pany. Under the terms of this mort
gage, the Union Pacific, beginning with
the year 1905, shall pay annually into
A. 81, l.;
default for six months to be cause for
foreclosure. The funds and securities
now in the hands of the treasury
Union Pacific fund shall be held as
further security for the new bonds to be
issued.
The encouragement is given authori-
ty to cooperate with the Union Pacific
reorganization committee now at work.
The plan this company shall agree upon,
it is provided, shall limit the annual
fixed charges of the company to $780,
600. Bonds for extension and devel-
opment of the reorganization system,
however, may be issued hereafter
! bv consent of two-thirds Of the
subject to the general mortgage bonds.
Power is given the company to issue
| preferred and common stock to an
amount to be fixed by 4 majority Of the
stockholders. The existing first mort
gage bonds are now prior and SUI
perior to the governments hen.
| The company is given power
| 20 provide for, by issuing at or before
,aturity, other bonds to run not ex-
cceding sevcnty-tive years and to bear
not exceeding 5 per cent annual in
tcrest, the lien to be the same rs that
of the present bonds. An annual sink
| ing fund of $45, 900 is provided for the
redemption of these bonds.
The board of directors is to consist of
five government directors and fifteen
othe: directors, seven of whom may be
chosen by preferred stockholders and
eight by common stockholders. Pro-
vision is made for the courts ascertain
in- and providing for debts of the COM
panv and for other incidents of the