The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-10-18
u. P. REORGANIZATION
PLAN OF THE COMMITTEE FINALLY
GIVEN TO THE PUBLIC.
Issue OF 1896 900. 900 bonds and stock
Observation-Disclosures Ready TO
Purchase Defausfed Coupons.

The synopsis OF the plan OF reorganization
OF the Union Pacific railroad. which was
announced yesterday places the mileage af-
fected by the reorganization at a total Of
main line of 1.sH miles. Balances due on
outstanding land and town lot contracts on
Dec. 81. 1894. were Sc, 1872. Isl. and unsold land
grant lands. including those under contract.
amounted TO s.524.oOo acres. at estimated
value OF $1235s. 800. The total funded debt is
placed at $40, f25. $50. The fixed charges and
deductions frem net earnings. including in
terest on bonds. sinking fund and govern
meut requirements are stated in the PAM
phlet for a period of five years. the aver
ag fixed charge being 81. S02. col. This, 1t Will
show, Is exclusive of the excess OF interest
on the debt to the government over the net
earnings applicable under the Thurman and
other acts. and OF interest on bonds held on
main line, mortgage trusts under conversion
provisions. and OF the obligations Of the
railwey company under traffic guarantees.
Including those items. the fixed and other
charges prior TO the stock for the year 1892.
being the year just preceding the receiver
ship. aggregated the sum OF $7.sS1.475 or
greater by 1881. 40 than the amount neces-
sary TO pay the annual interest on the max
imum mortgage debt and full annual divi-
aN@A@ ~ tAAD All0 III Dol VI "
stock contemplated in the reorganization
The pamphlet shows hat the average an
nual net earnings for ten years, 1855 to 1884.
inclusive. were $.563. 6S9, or an amount
greater by 1865. $50 than the maximum inter-
est and dividend requirement upon the new
bonds and preferred stock provided for in
the plan. The lowest net earnings realized
by the Union Pacific railroad were those of
the year 1894. when they were A,3l5.OT7. or
<5l9,of1 IN excess or interest on tne maxi
mum amount OF proposed bonds or the new
company.
The plan contemplates the issue of $780,
100000 OF first mortgage railway and land
grant ffty-year 4 per cent. gold bonds; S5,-
100000 OF 4 per cent. preferred stock. and
80, 100000 OF common stock The new bonds
are to be secured by a first and only lien on
the main line mileage OF the Union Pacific
railway, equipment land grant, land and
land grant balances. and upon such branch
a sHsi1 OF OF r fsr ! AZ sSs 'o osnsps %m,' in m soall
gage trusts OF branch line bonds. The pre-
ferred stock is TO be entitled TO 4 per cent.
noncumulative dividends, payable out OF net
or surplus earnings before the paymen OF
any dividend on the common stock. The
stock OF the present company VIII be as
sessed So per share, the holders receiving
new preferred stock for the amount of their
assessment n common stock equal at par
10 their present holdings.
ganized to furnish 100000 or $l5.OOO,Oo IL
desired to purchase upon deposit, OF the
first mortgage bonds, all defaulted coupons
and interest assignments pertaining there
10 and thereafter as they may NATURE; all
coupons and interest claims maturing dur
ing the ~pendency of the plan on such
honds.. and to adjust in cash the . per
cent. difference in the rate OF interest on
old and new bonds from the date at which
the new bonds begin 10 bear interest. 20
the due dates OF the principal of any sub
serenity maturing first mortgage bonds.
This cash provisions apply TO Union Pactnc
first mortgage skies; Kansas Pacific East
ern division skies. Kansas Pacific middle
division skies and Kansas Pacific Denver
extension first mortgage sizes.
The time for declaring the plan oper-
alive Is limited to Dec. 81, 1896, with right
OF extension to June 3. 1897. The time for
the deposit Of bonds and stocks Is limited
10 Dec. 81, 1895, after which penalties or .
per cent. on bonds and s. per share on
stock will be imposed. The new bonds will
be dated ian. II. 1897, and shall bear in
terest on that date on Jar. 1 and July j
thereafter. Deposits may be made at any
OF the repositories on and after Nov. ].
1895. from which date matured coupons on
first mortgage bonds will be cashed. as
provided in the plan Stockholders will not
be required 10 pay any part OF the assess
ments until the plan has been declared OBJ
erative. Securities will be returned free
OF expense to holders should the plan be
abandoned. The repositories are in the
Mercantile Trust Company. OF New York;
Old Colony Trust Company, OF Boston;
Bank Of Montreal, London; Amster
damsche Bank OF Amsterdam. and
Deutsche vereinsbank, OF Frankfort-on-