Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1896-12-14
Union PACIFIC FINANCES.
Details of One Of the Features Of
Reorganization.
The Trust Note Reorganization
Committee Will Issue It's Plan
To-Day - Some of the Leading
Ideas Contained in the Plan, as
1t will be Reported.

NEW YORK, December 13-The Union
Pacific collateral trust note reorganiza-
ton committee consisting Of John G.
Moore. James w. Alexander, Of New York
City, and Edwin F. Atkins. Of Boston. will
issue its plan Of reorganization on Mon
day for the reorganization Of the Union
Pacific six per cent. collateral note trust,
and 1t Is understood will work in harmony
with the general reorganization commit
tee Of the Union Pacific railway.
The plan calls FOR deposits OF the three
year collateral trust company upon notes
issued by the company under its inden-
ture of September {. 1851.
As the notes are now
TWO YEARS OVERDUE.
It is proposed, in view Of The insolvency OF
the company TO cause an early foreclos-
ure and sale Of the collateras held in the
trust and their purchase by a new COM
pany to be organized under the title OF
the Union Pacific Security Company.
The amount Of notes outstanding is
stated to be IS. 10000. The new company
is TO issue five per cent. first mortgage
twenty-five year gold bonds 10 the amount
of $l0.0000O0. which are 10 be exchanged
a par for notes deposited under the plan.
and are 10 be secured by the same collat-
eral Five million dollars in stock is also
to be issued TO the holders of the Old
notes to the extent Of fifty per cent. OF the
par value Of the notes.
The remaining bonds. $4,000. are 70 be
HELD IN THE TREASURY
Of the new company 10 bc used. with the
consent Of the trustee Of the mortgage. IN
the protection Of tho securities held in
the collateral mortgage by joining I'm plans
Of reorganizatioa payment Of assessments
under such plans, and other purposes con-
nected with the business OF the company.
The time for declaring the plan effective
is limited to February /. 1857.
The conditions requiring this reorganiza-
ton are outlined as follows by the secre-
tary OF the committee:
1T is proposed to reorganize the trust
securities in harmony with the reorgani-
zatlon of the Union Pacific railway. Tho
character Of the securities Is such that
this method Of reorganization is required
10 best preserve and
ENHANCE THEIR VALUE
The present enterprises promoted by the
Union Pacific Railway Company are so
related that the best result to both inter
ests can only be obtained by such a har-
monious reorganization.
1T is obviously TO the interest Of the
note holders. as well as to that Of the
holders OF all fixed obligations of the rail-
way company. that the properties repre-
sented in the trust should not be scat
tered In ownership and administration,
but should be kept together and admin
istered for the common advantage Of the
security holders. The committee has been
organized for this purpose.
THE HOLDERS OF NOTES
are called upon TO accept five per cent
obligation. in lieu Of an overdue six per
cent. obligation secured upon the same
collateral; the difference in the interest
rate and the possibilities Of Increased val
ues resulting from holding the securities
together and administering them as pro-
posed by the committee are represented
by the stock Of the new company 10 no
issued TO the asserting note holders I'm the
proposition fixed by the plan
The depOsitaries under the plan OF the
organization are the Mercantile Trust
Company Of New York and the American
Loan and Trust Company Of Boston. who
viii receive deposits under The plan Non
day.