The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1895-10-18

IL Oontempiates the Issue by New
Company OF One Hundred Million
Dollars of Fifty-Yoars Four-Per-
Cent. Gold Bonds, seveuty-FIve
Millions Four-Per- Cent. Preferred
stock and sixty-One Millions Conn
mon Stock.
NEW YORK. oct. 1.-THE reorganjza-
! ton committee of the Union Pacific Rail-
way Company, Louis Fitzgerald, Jacob Il. .
! Schid, T. Jefferson Coolidge. Jr, Chaun-
cey NJ. Depew, Marvin HuEhitt and
Oliver Ames, with co-operauOu of Kuhn,
/ Loeb Il Co., bankers for the committee
and managers Of the reorganization
| syndicate, have issued plan Tor the re-
/ organization Of the properly.
| The committee states IL 10 lee its pur-
! pose, while continuing all proper effort s
to reach just and fair settlement of the
Government debt, 10 enforce the liens of
the first mortgage in the interest OF tho
bondholders and OF the objects of the re-
organization plan. 1t is stated that the
fixed charges under reorganization are
based on the lowest results of the opera
tion OF the main lines during the time of
the greatest depression, and The plan sub
( mitted has been prepared With the pur-
pose of insuring 1ulI returns 10 the de-
posting security-holders with immediate
aud cOnunulng cash provision for
matured and maturing interest upon
first mortgage main line bonds pending
reorganization.
The main lines of the Union Pacific
Railway Company affected by the pro-
posed reorganization include the Union
Division, Council Bluffs to Ogden;
Kansas Division, Kansas City to Denver;
Leavenworth Division, Lsavenworth to-
Lawrence; Cheyenne Division, Cheyenne
| to DenVer-a total main line mileage of
l,Szi.0U miles.
The balance due on outstanding lands
and town lot contracts on december 81,
| 1894. on Union, Kansas and Denver Pa
ellie divisions were So, l62, 15I 6J and the
unaold land grant lands excluding those
| under CONTRACT amounted on that date to
! G,204, 900 acres, OF an estimated value of
| Sl3,3IS, 3OO The bonded indebted ness of
the Union Pacific Railway Company on
| October l, 1895 iucluding collateral trust
obligations, amounting 10 so, ,OJ2, 900, and
not embraced III the plan, amounted 10
S67, ,3oG. $50. and the debt TO the Govern
ment was, principal GS,33Y, 5l2, and in
terosl, approximately after deductinE es-
umated value OF tho sinking fund. SI9,-
500, coo. The total funded debt is stated
/ at SliO, 40, 662. The outstanding capital
stock of the present company is 500, ,SUS,-
800.
The fixed charges and deductions from
net earnings OF the company, including
interest on bonds, sinking fund and
Government requirements, are stated for
period OF tive years, the average fixed
charges for three years being So, SO2, 0Ul Is.
This Is stated 10 De exclusive OF the eX-
cess OF interest on the debt to the Govern
ment over the net earnings applicable
under the Thurman and other Acts, and
OF interest on bonds held in main line
mortgage trusts under conversion pro-
visions, and OF the obligations OF IAe rail-
way company under the traffic guarantee.
1t is shown that including those items the
liked and other charges prior to the
stock of tho year 1892, being the year just
preceding TO the receivership aggre-
gated the sum of S7,SSl, 40 IL, or sum
greater by 1881, 40 Al than the amount
necessary 10 pay the annual interest
upon The maximum issue OF the pre-
ierred stock contemplated in the re-or-
ganization plan.
y statement of the gross earnings and
of net earnings, taxes deducted, for
period OF ten years-lSS4 10 1894, in
clusive-is presented, with the stated re-
suit that the average net earnings for this
period were 1865, ,669 10, or an amount
greater by S563 669 10 than the maximum
interest and dividend requirements upon
the newabOnds and preferred stock provi-
ded for IN the reorganization plan. 1t is
noted that the lowest net earnings realized
Dy the L mon Pacific hallway were those
OF the year 1894, when they were S4,315,-
or %, or S3lj,077 % in eXcess of interest
on the maximum amount of proposed
bonds of the new company.
The reorganization plan Contemplates
the issue by a new company of first
mortgage and railway aud land grant
tifty-year 4 per cent. gold bonds, $780,
OO0,OO per cent. preferred stock, S75,-
$1,000, and common stock, Sol ,0OO, 900.
The new bonds are to be secured by Il
first and only lien upon the main line
mileage of the Union Pacific Railway
equipment land grant, lands and land
contract balances, and upon such
branches of railway as the committee
shall avail of through the ownership in
mortgage trusts of branch line bonds.
The preferred stock is to be entitled to
per cent. non-cumulative dividends, pay
able out OF net or surplus earnings before
payment Of any dividend on the common
stock.
The stock OF the present company will
be assessed Sl5 per share, the holders re-
ceiving preferred stock for the amount
OF tDelr assessment ana common STOCK
equal at par to their then present hold
ings.
y reorganization syndicate to furnish
$1,000, ,UUU, with the right on the present
committee, and the bankers to increase
this amount to I5.000,000, has been or
ganiZed by Kuhn, Loeb Il Co., banker
to purchase upon deposit OF the first
mortgage bonds all defaulted coupons
and interest assignments pertaining hith-
erto, and thereafter as they mature, all
coupons and interest claims maturing
during the pendency of the plan upon
such bonds, and TO adjust IN cash tho 2
per cent. difference between the rate OF
interest of old and new bonds from tns
date from which the new bonds begin TO
bear interest to the due dates of the
principal of any subsequently maturing
first mortgage bonds.
The syndicate is also to purchase if it
shall be found advisable for the promo
ton OF the reorganization, any outstand-
ing hrst-mortgage bonds and Omaha
bridge bonds. and to deposit the same
under the plan; and if advisable, to pur-
chase also all or any defauited coupons
and interest assignments on Omaha
bridge bonds.
The time for declaring the plan oper-
alive is limited to December 81, 1896, with
the right on the part OF the committee to
extend the time to June so, 1897.
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Female culprits endure prison priva-
tions much easier and longer than GRIM
inals of the other sex. England has in
stances of women captives who have
raacbad tho of having lived