New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-10-18
THE UNION PACIFIC PLAN
ANNOUNCED BY THE REORGANIZATION
COMMITTEE.

COMMITTEE.
SECURITIES TO BE ISSUED BY THE NEW COMPANY
AND THEIR DIsTRiBUTIoN-A sYNpl-
CATE ALREADY ORGANIZED.
The REORGANIZATION pan for the Union Pacific
Railway Company issued yesterday by the
Reorganization Committee which consists OF Cen
eral Louis Fitzgerald. Jacob II. Schf 7. jefferson
Coolidge. jr, Chauncey NJ Depew Marvin Hughitt
and Oliver Ames, I'd. with the cooperation OF
Kuhn. Loeb & Co. bankers FOR the committee ana
managers OF the reorganization syndicate
The plan is preceded by circular addressed 10
the security holders and by statement of mileage
etc. and IL followed by form OF agreement.
The circular calls attention 10 the need OF united
action of the security holders Under legal advice
that first mortgages on the subsidized parts or the
main lines may be effectually foreclosed the COM
mttee states It's purpose, while continuing all proper
efforts to reach just settlement OF the HoVerh-
ment debt. to pursue the remedies to enforce the
lien OF the first mortgages In the interest OF the
bondholders, and OF the objects OF the plan
The fixed charges under the reorganization are
based upon the lowest results of the operation OF
the main lines during the times OF the greatest
depression, and the plan proposes insurihg inh
returns to depositing security holders with I'M
mediate and continuing cash provision for matured
and maturing interest upon first mortgage mann
line bonds pending reorganization
The statement shows that the main lines ar
fec.ed by the reorganization Include the Union d.
vision. Council Bluffs TO Ogden; Kansas a'is'on'
Kansas City to Denver: the Leavenworth branch
Ieavenworth 10 Lawrence. and the Cheyenne di-
vision Denver to Cheyenne; total mileage OF
1,SN59 miles,
The balances due to outstanding land and town
lot contracts on December 81, 1894, on Union nan
sas and Denver Pacific divisions, were $l62 oi o.
and the unsold land grant lands excluding NOSE
p.a1
acres OF an estimated value OF $3.S5S5o
The bonded Indebtedness of the Union Pacihc
Railway Company on october l. 1895 dncuding cor
lateral trust obligations amounting TO Soos.o"
and not embraced in the plan). amounts 10 Vs.
1856 $50 The debt 10 the Government was:
For interest aapproxmateiy after deducng es nm
timated value Of the sinking fund.- ooVDo
Total funded debts,
The outstanding capital stock of the present COM
pany is $6o&S,5oo.
The fiscal charges and deductions from net earn
incs including interest and bonds. sinking tund anu
Government requirements, are averaged at sS's0z'-
Ool q for five years. Thsis exclusive OF the excess
Of interest On the debt to the Government over the
net earnings applicable under the Thurman ana
other acts, and Of interest on oonos heu III mann
line mortgage trusts, under conversion PROVISIONS
and of me Obligations of the railway company u'-
der traffic guarantees Including these items the
belng the wear Just preceding the receivership ag
gregated 1851 AS "A. or sum greater py soolf'o -
than the amount necessary to pay the annuai IN
terest upon the maximum mortgage dep! anu iui'
annual divrends on the maximum issue OF pre-
ferred stock contemplated in the reorganization
plan.
The average annual net earnings for the perod
1ss5lss4 inclusive 1853 $50 TO- greater by sooS
66s 10 than the maximum interest and dividend re-
u,iremerts upon the bonds and preferred
stock provided for In the plan. The lowest net
earnings Of the Union Pacific Railway were In
1894 being 315077 2 or $S5O77 25 in excess of In
terest on the maximum amount of proposed BONDS
of the company.
The reorganization plan contemplates the issue
by company Of:
year per cent gold bonds ........ .sl9oV,o' VS
-Four per preferred stock .......... e9Voo'wW
The new bonds are to be secured by a first and
only lien upon rhe main line mileage Of the entire
Union Pacific Railway. equipment. land grant,
lands and land contract balances and upon such
branch lines of railway the committee shall avail
of through the ownership in mortgage trusts OF
branch line bonds
The preferred stock Is be entitled to per cent
non-cumulative dividends payable out of net or sur
plus earnings before the payment Of any dividend
on the common stock. H'
The following table shows the apportionment OF
the companys securities:
New4% 80 New pre- New COM
year gold feTed mon
bonds. stock. stocK
Amount. Amount Amount