The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-10-18
THE UNION PACIFIC.
The Plan of the Proposed Reor-
ganization Published.
STOCK ASSESSED Sis PER SHARE
your Per Cent. Bonds TO Retire tne
Present sfxes-wfth Present Earn
in<s Fixed Charges Can Be Mot.

49, ve-k Oct IA synopsis Of the
,,sn of REORGANIZATION Of the Union IA
c.fc railway was announced To-Day A
places the mileage affected py tHs =
Sanizaiion at total OF main me % 49,
,nsiea balances due on outstanding land
.na town Ios contracts on December 81,
1894 were s.. 162, 1si, and the unsoia iafid
grants Including those under cohttaFt'
amounted TO e524.es9 acres. or ths ssti-
mated value Of 81, is 90 The total Aufo-
ed debt is placed at sl49,i2s,ss-- Inc HNei
charges and deductions from net car "a
ings including interest on bonus SHE slls
fund ard government requirements, are
stated in the pamphlet for per1oa OF
Ave years. the average fixed charge being
ec M d0I This IL will show. Is exclusive
OF the excess OF interest on the aeot 10
the government over the net earnings dP-
pllcable under the Thurman ana otheF
acts: OF interest on lords held on mann
line mortgage trusts under conversion
provisions, and OF the obligations OF the
railway company under traffic suaran-
tees. Including those items, the fixed ana
other charges prior to the STOCK TOT tho
year Issz. being the year just preceding
the receiveTship aggregated the sum OF
s7.ss1. AS, or greater by sssi.f'S imam the
amount necessary TO pay the annual ln-
;erest upon the maximum mortgage ueol
and full annual dividends on the MN
imum issue Of preferred stock conteln-
plated In the reorganization plan Tno
pamphlet shows that the average annual
net earnings FOR the ten years from mo
TO 1894 inclusive were .3.5o5.55s. or an
amount greater by s563,oss than the max
fmurn interest and dividend requirements
upon the new bonds and preferred stock
provided for by the plan. The lowest net
earnings realized by the Union Paeilc
railroad were those Of the year ls94. when
they were ss,si5,017, or s3l5.077 in excess OF
the interest On the maximum amount OK
proposed bonds OF the new company.
The plan coutemplates the issue OF
si0o 10000 OF first mortgage railway and
land giant ntty-year 4 per cent. gold
bonds. s75.oooc00 OF per cent. preferred
stock, and SOL 0o0. 90 OF common stock The
new bonds are 20 be secured by a first
and only lien upon the main mileage OF
the Union Pacific railway equipment. land
grant, lands and land grant balances. and
upon such branch lines OF railway as the
company shall avail or through the own
ership I'm mortgage trust OF branch line
bonds. The preferred stock is 20 be en-
titled 10 4 per cent. non-cumulative div
blends. payable out of net or surplus
earnings before the payment of any divi-
dend on the common stock. The stock OF
the present company will be assessed SIS
per share. the holders receiving new pre-
ferred stock equal at par 10 their pres
ent holdings. a reorganization syndicate
has been organized 80 furnish ten or fif-
teen millions II desired, TO purchase. upon
deposit Of the frat mortgage bonds. all
defaulted coupons ard interest assign
ments pertaining thereto. and thereafter.
AS they mature. nil coupons and interest
maturing during the tendency OF the plan
upon such bonds. and 70 adjust in cash
the 2 PEI cent. difference in the rate OF
the old and nox bonds from the date on
which the new bonds begin 10 bear inter
est 10 the due dates OF the principal OF
any subsequently maturing first mort
gage bonds. The cash provisions apply
to Union Pacific first mortgage 6s: Kan
sas Pacific. Eastern division, es: Kansas
Pacific, middle division. es. and Kansas
Pacific. Denver extension, first mort
gage Gs.
The time for declaring the plan operative
is limited 20 December 81. 1896. with the
right OF extension 10 June So 1897. The
time for the deposit OF bonds and stock Is
limited 10 December 81. ls95. after which
penalties OF per cent. on bonds and s. per
share on stock win be imposed. The rev
bonds win ha dated January I. 1897. and
shall bear interest on that date and on
January and July l thereafter. De-
poSita may be made at any Of the deposi-
tories on and after November !, 1895. from
which date matured coupons on first mort
gage bonds viii ha cashed as provided IN
the plan. Stockholders viii not be requir-
ed 20 Pay any part Of the assessment until
tho plan has been declared operative. Sc
curities Will he returned free OF expense
20 holders should the plan be abandoned
The repositories are tho Mercantile Trust
Company. Of New York; old Colony Trust
Company, Of Boston; Bank OF Montreal.
London: Amsterdam Bank. Of Amsterdam.
aud Deutxehs Yercln Bank, OF Frankfort
nn-thn-Eatn