The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-10-18
U. P. REORGANIZATION,
FULL AND INTERESTING DETAILS
OF THE PLAN.
s Syndicate Organized With Fiji
teen Million Dollars Mt Its Conn
mnnd-A Matter of Great Import
ance to the Railway World.

NEW YORK. Oct. ia synopsis of
the plan of reorga nization of the Union
Pacific railway was announced today.
1t places the mileage affected by the
| reorganization of a total of nine lines
Of 1927 miles. Balances due on Outstand-
Ing land and town lot contracts on De-
cember 81, 1894, were S6.l62. I51, and IN
sold land grant lands, including those
Under contract, amounted to 6,54, Gud
acres. estimated value Sl5,35S,5O0. The
total funded debt IS placed a $40, 42S, S62.
The fixed charges and deCJlctionS from
net earnings, including interest on BOMBS,
sinking fund and government require
nentS are stated in the pamphlet for a
period OF five years, the average liked
charge being $3.50. 001. This it will show.
is exclusive of the excess of interest on the
debt to the government, over the mel
earnings applicable under the Thurman
and other acts of interest on bonds held
on main line mortgage trusts, under con-
version provisions, and of the obliga-
tons of the railway company under
traffic guarantees. Including those items
the fixed and other charges prior to the
stock for the year 1892, being the year
GATED the sum of 1851. 475 or greater
by 1881. 475 than the amount necessary to
pay the annual interest upon the max
imum mortgage debt and full annual
dividends on the minimum issue Of pre-
ferred stock contemplated i'll the reor-
ganiZatiOn plan.
The pamphlet shows the average an
nuai net earnings for ten gears. 1888 to
1884, inclusive were S7,905 oo9, or an
amount greater by $3.50, 500 than maxi
mum interest and dividend requirements
upon the new bonds and preferred stock
provided for the plan.
The lowest net earnings realized by
the Union Pacific railroad were those
Of the year 1894. when they were S4,5l2.-
on or $315,O77 in excess of interest on the
maximum amount of proposed bonds of
the new company.
The plan contemplates the issue Of
S1C0, 100000 of first mortgage railway ana
bonds; SIS, OOOO6 of 4 per cent. preferred
stock and sci, 100000 of common stock.
The new bonds are to be. secured by a
nrst and only lien upon the main line
equipment. land grant, lands and land
grant balances, and upon: such brancn
lines Of railway as the committee shall
avail of through the owershlp IN mort
gage trust of branch line bonds.
The preferred stock is to be entitled TO
4 per cent. non cumulative dividends,
payable out of net or surplus earnings
before the payment of any DIVIDENDS on
present company will be assessed SO
per share. the holders receiving new
preferred stock for the amount OF tneir
assessment and common stock, equal at
par 10 their present holdings.
A reorganization syndicate has been or
ganiZed to furnish $4,000, 900 or $15,JOJ,O0O
If desired to purchase upon deposit Of
the first mortgage bonds, all defaulted
coupons and interest assignments per
tanning thereto, and thereafter. as they
mature. all coupons and interest claims
maturing during the tendency of the plan
upon such bonds, and to adjust in cash,
the per cent. difference in the rate on
old and new bonds from the date OF
which the new bonds begin to bear in.
terest to the due dates of the principal
of any subsequently maturing lirst mort
gage bonds.
The cash provisions apply to Union Pa
cific first mortgage SKIES, Kansas Pacific
eastern dividend SKIES, Kansas Pacific
middle division SKIES and Kansas PdcihC,
Denver extension first mortgage skies
The time for declaring the plan OPERA
tive is limited to Dec. 81 1895. with right
of extension to June 80. 1897. The time
for the deposit of bonds and stocks is
limited to Dec. 81, 1855, after which pen
alties of D per cent. on bonds and s. per
share on stock will be imposed. The new
bonds will be dated Jan. l. and July l.
thereafter Deposits may be made al any
of the repositories on and after Nov. /,
1S95 from which date matured coupons
on first mortgage bonds will be cashed,
as provided in the plan. Stockholders
will not be required to pay any part of
the assessment until the plan has been
declared operative. Securities will be re-
turned free of expense to holders should
are the Mercantile Trust company of New
York; Gid Colony Trust company, of
Boston, Bank of Montreal, London; Am
sterdam Schebank. of Amsterdam and
Deutsche Vreins bank, of FrankfOrt-On-
Main