The Portland daily press., 1895-10-18
The Plans Of the Reorganization
Committee.
AN ELABORATE FINANCIALS SCHEME
OUTLINED.
Full Details of the Project OF Reorsani@a-
tion as Set Forth by the COMMISSION
A Transaction Involving Many Millions

New York, October 1.-THE reorganl-
zationcommittee of the Union Paclnc
Railroad Louis Fitzgerald, Jacob H.
Schiff, 7. Jefferson Coolidge, Jr., Chaun-
cey M. Depew, Marvin Hughitt ana OH
yer Ames, Cd. with tie corporation OF
Kuhn, Loeb & Co. bankers for the COM
missioners and managers of the reorgani-
zation syndicate, have issued plan for
the reorganization OF the property.
!. The plan contemplates an issue by the
new company of first mortgage rariload
and land grant 50-year per cent gold
bonds, 500, 900, 600 per cent preferred
stock, $75, 900, 900 common stock. The new
bonds are to be secured by the first and
only lien upon the main line mileage OF
the Union Pacific Railroad, equipment,
land grants, land contract balances, and
upon such bran ch lines of railway as the
committee shall avail themselves OF
through ownership, mortgage, trustskof
branch line bonds. The preferred stock
is to be entitled to per cent. non-cum-
ulatiye dividends, payable out OF the net
or surplus earnings. before the payment
If any dividend on common stock.
The stock of the present company is
to assessed SIS a share, holders
receiving preferred stock for the amount
of assessment and common stock equal at
par to their present holdings The reor-
ganization syndicate is to furnish $40,
900, 600 with the right on the part OF the
commissioners and bankers to increase
the amount S15.OOO,OO0. The syndicate
is to purchase upon deposit of the first
mortgage bonds, all the defaulted cou-
pons and interest and assignments per-
tanning thereto and thereafter as they
mature; all coupons and interest CLAIMS
maturing during the pendency OF the
plan of such bonds, and to adjust in cash
the 2 per cent difference between the
rate of interest Of the old and new bonds
from the date at which. the new bonds
begin to bear interest till due, or the
dates of the principal of any subsequent
" maturing first mortgage bonds. The
following are the bonds to which the cash
provisions apply: Union Pacific first
mortage per cent bonds, Kansas Ia
cifio, eastern division, per cent bonds,
the Kansas Pacific, middle division, 3
per cent bonds, Kansas Pacific extension
first mortgage per cent bonds
Holders of the bonds of the classes
above mentioned will receive cash for de-
faulted coupons upon deposit of the
bonds The syndicate is to purchase, IT
it should be found advisable for the pro-
motion of the reorganization, any out
standing first mortgage bonds and the
Omaha. bridge bonds, and to deposit the
same under the plan. If advisable, to
purchase.all Or any defaulted coupons and
interest assignments on the Omaha
bridge bonds.
The time for declaring the plan opera
tive is limited to December 81, 1896. A
part of the commission desire to extend
the time to June.3O, 1897. The time for
the deposit of the bonds and stock is
limited to December 81, 1895. after which
penalties of per cent on bonds, and IS
per share on stock will be imposed. The
repositories named On the plan are the
Mercantile Trust Company of New York,
Old Colony Trust Company of Boston,
Bank of Montreal of London; Amster-
dam Sche Bank of Amsterdam, and the
Deutsche Vreins Bank of Frankfort-on-
the Main.
1t is said the bankers syndicate has
bean considerably over-subscribed Large
bond holding interests have already as.
sented to the plan. The syndicate will
recei We as compensation 5000, 900 in the
preferred stock.