The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1896-12-14
UNION PACIFIC REORGANIZATION.
The Pian fur tbs Issue OF SIX Per Cen
Collateral NDtra,

NEW YORK, Dec. l3.--Tho Union
Pacific collateral trust note rcorgani-
zation committee, consisting OF John C.
Moore. James ". Alexander. OF New
York City and Edwin l.. Atkins, OF
Boston, will issue It's plan OF rc.ornanI.
zatlon OF the Union Pacific six per cent
collateral noto trust. nnd It Il under.
stood will work In harmony with tho
general reorganization committee OF
the Union Pacific railway.
The plan calls for deposits OF tho
three year collateral trust company
under its tdentuTG or September 4. 1891.
AS The notes nre now two years over
due Il Is proposed In view OF thc In
solvency OF the company 10 cause an
early foreclosure and sale OF the col
l0tcrals held In the trust and their
purchase by a new company 60 be or
Eanized under tho title OF the Union
Pacific securities company.
Tho amount OF notes outstanding Is
stated TO be S,J00,0O0; tho new COM
pany Is to Issue i've per cent, first
mortgage twenty-five year gold bonds
10 the amount OF $40. 900. which are
to be exchanged at par for notes de-
posted under tbs plan and are to be
secured by tho came collateral $1,000
900 In stock IL also TO be issued 20 hold
ers OF the OLD notes TO the extent OF
fltty per cent OF tho parv alue OF the
notes.
The remaining bonds sl.50O,OO0 are
to be held IN the treasury OF the new
company TO be used with the consent OF
the trustee OF the mortgage In the
protection OF the securities held In the
collateral mortgage by joining In
plans OF reorganization. payment OF
assessments under such plans. and 9TH
or purposes connected with the busI-
ness OF the company.
The time for declaring the plnn ef-
fcctivc is limited to February /. 1897.
The conditions requiring this rcor-
ganiZation are outlined as follows, by
the secretary OF the committee:
Il. Is proposed to rc-organize the
trust securities In harmony with the
reorganization OF the Union Pacific
railway. The character OF the seCur-
tiles Is such that this .mcthod OF re-
organization Is required 10 best pre-
serve and enhance their value. The
present enterprises promoted by the
Union Pacific railway company are NO
related TO II that tho best result to
both interests Gun only be obtained by
such q harmonious reorganization.
'lt Is obviously to the interest OF the
note holders. as well as to that OF the
holders OF all fixed obligations OF the
railway company. that the properties
represented In the trust should not be
scattered In ownership and ndmlnis-
trntion. but should be kept together
nnd administered for the common ad-
vantage OF the security holders. The
committee has been organized for this
purpose.
The holders OF notes are called upon
to accept n i've per cent obligation, In
leu OF On overdue six per cent oblign-
ton secured upon the same collateral:
the difference IN the interest rate and
the possibilities OF Increased value. re-
slitins from holding the securities TO-
Scthe- and administering them US pro-
posed by the committee are repre-
scented by the stock OF the new COM
pany 10 be issued to the asserting
note-holde-s in the proposition fixed
by thc plan
The denositnries under the plan OF
the organlEati ton arc the mercantile
truse company OF New York and tho
American loan and trust company, OF
Boston. who will receive deposits un-
der the plan Monday.