The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-10-18
THE PLAN THEY HAVE
One Of the Schemes to Get the Union
Pacific Going.
MILLIONS IN A HIGH MIX
1t ls as Clear as Mud to Most Peo-
Pile. but Those Who Got II
Up Say That II VIII
Work.

New York, Oct. IA synopsis OF
the plan of reorganization OF the Union
Pacific railway was announced to-day.
1t places the mileage affected by the
reorganization at a total OF the main
line OF l.s27 miles. Balances due on
outstanding land and town lot con-
tracts on Dec. 81. 1884, were ss,162,75l,
and unsold land grants, including those
under contract. amounted to 6,5si0OO
acres, estimated value. sls,S5S,5oo. The
total funded debt Is placed at $l4o,i25,-
s62. The fixed charges and deductions
from net earnings. including interest
on bonds, sinking fund and government
requirements are stated In the pamph-
let for a period OF five years. the aver
age fixed charge being s6.S02,0ol.
This Is exclusive OF the excess OF In
terest on the debt to the government.
over the net earnings applicable under
the Thurman and other acts OF interest
on bonds held on main line mortgage
trusts. under conversion provisions. and
of the obligations of the railway COM
pany under traffic guarantees. lnclud-
ing those items. the fixed and other
charges prior to the stock for the year
1892. being the year just preceding the
receivership. aggregated the sum of
S7,Ss1,475, or greater by ssS1, ,475 than
the amount necessary to pay the annu-
al interest upon the maximum mort
gage debt and full annual dividends
on the minimum issue of preferred
stock contemplated in the reorganiza-
ton plan.
The pamphlet shows the average an
nual net earnings for 10 years. 1885 to
1894. inclusive, were s7.563.669. or an
amount greater by $563.669 than the
maximum interest and dividend re-
quirements upon the new bonds aud
preferred stock provided for the plan.
The lowest net earnings realized by
the Union Pacific railway were those OF
the year 1894, when they were &3l5,0T.
or S315,077 in excess of interest on the
maximum amount of proposed bonds
Of the new company.
The plan contemplates the issue OF
si00. 200 900 Of first mortgage railway
and .land-grant 5o-year 4 per cent. gold
bonds: S75.OoO.o 900 OF per cent. preferred
stock and $61. 100000 OF common stock.
The new bonds are Ito be secured by
first and only lien upon the main line
mileage OF the Union Pacific railway.
equipment, land grant. lands and land
grant balances, and upon such branch
lines of railway as the committee shall
avail of through the ownership Of mort
gave trust or branch line bonds. The
preferred stock is to be entitled to
per cent. non-cumulative dividends
payable out of the net or surplus earn
ings, before the payment OF any divi-
dend on the common stock.
The stock OF the present company
will be assessed SIS per share. the hold
ers receiving new preferred stock for
the amount of their assessment and
common stock, equal at par to their
present holdings. A reorganization
syndicate has been organized to fur
nish $10,0O0.OO0 or s15.000.0O0 II desired
to purchase upon deposit of the first
mortgage bonds, all defaulted coupons
and interest assignments pertaining
thereto. and thereafter. as they ma
ture, all coupons and interest claims
maturing during the pendency OF the
plan upon such bonds, and to adjust
In cash, the two per cent. difference In
the rate on old and new bonds from
the date of which the new bonds begin
to bear interest to the due dates OF the
principal OF any subsequently matur-
ing first mortgage bonds. The cash
provisions apply TO Union Pacific first
mortgage skies, Kansas Pacific eastern
division skies. Kansas Pacific middle
division skies. Kansas Pacific middle
division skies and Kansas Pacific,
Denver extension first mortgage skies.
The time for declaring the plan op-
erative is limited to Dec. 81. 1896, with
right OF extension to June 30. 1897. The
time for the deposit OF bonds and stock
Is limited to Dec. 81, 1895. after which
penalties OF five per cent. on bonds and
s. per share on stock will be imposed.
The new bonds will be dated Jan. l..
1897. and shall bear interest on that
date. Deposits may be made at any
of the repositories on and after Nov.
1, 1895, from which date matured cou-
pons 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 returned free OF ex-
pense to holders should the plan be
abandoned. The repositories are the
American Trust company OF New
York. Old Colony Trust company Of
Boston. Bank OF Montreal. of London.
Of Amsterdam. and the Deutsche Yer.
elm bank OF Frankfort-on-the-M Main.