The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1896-12-14
a NsW PLAN.
Propositions Regarding the EeorgnniSa-
ti"n of the Z nion Pacific

New York. Dec ll-Thr Union Pa
ellie collateral trust note rrorganiziug
committee, consisting of John a.
Moore James w Alexander of New
York city and Edwin +. Atkins ~ Bos-
ton, viii issue It's plan If rrnrgnniza-
tiun Monday Tor the reorganization ~
the Union Pacific 9 pcr cent collateral
note trust. and it is understood will
work in harmony with the general re-
organization uf The Union Pacific rail
way. The plan calls for dcpusits for
Year collateral trust coupon notes Is
sued lay the company uulCr It's indcn-
turr "f Sept T. 1881 As N" notes are
two years ovorlur, IL is proposed. in
NirW uf the Insolvency VI the company,
Ia cause an early foreclosure nul sale
"f the cullaterals held IN thr trust and
their purchase by nrN company "a
be organized under the title nf the
Union Pacific Securities company.
The amount of notes outstanding Is
stated Ia be SN.500.o0n The new COM
pany Is to issue por cent first mort
gage sh-year gold bonds tu the amount
of SluWU,rop. which are tn hc cNChang-
rd at par for notes deposited under the
plan and are tn hc secured 10y the same
collateral S5u0OOO0 In slorl< Is also To
hc issued to holders of the old notes
to the extent nf 80 per cent. of the
par value of the notes The remain
ing bonds. 81 .5oo. 900, are Jn be- held i'm
the treasury NJ the new company To
hr used with the consent uf the trustee
uf the murtgager In the protection nf
the securities held IN the collateral
mortgage 10y joining In the plans of
reorganization payment Of assess
nnIgr 1ttEh tInrtg mud al h.sf
purposes connected with the business
~ the company, The time for declnr-
Ing the plan effective Is limited to Feb,
|. 1897.
The conditions requiring this rror-
gani1ntion are outlined us follows hy
ia" secretary uf the cuuuuittvr. IT iS
proposed tu r'nTgaullp trust securities
In harmony with The reorganization ~
the Union paciii, railway The char
aCtcr of the securities ,s such that this
netho "f reorganization IL required to
best prrscry" md enhance the value.
The present cHtcrI lsr promoted 10y
the Union Pacific Railway company Is
so related To- IL that thr hrat result to
both interests can only be- obtained 10y
such a harmonious reorganization. II
Is obviously fn the interests nf the nntr
holders as well as iu those ~ The hold
crs nf all fixed obligations uf the rail
way company that the parties repre-
senird IN the trust sh0djd not hc scat
tered la ownership and administration,
hut should he kept together and Hd-
ministcrcd Tor the common advantage
of the security holders The .nmrnlt-
tee has been organized fnr this pur-
pose. The holders of notes are called
upon Ia accept per cent. obligation
In lieu ot au overdue = per cent. nhli-
CATION. secured upon the same cuilat-
'ral, the diffcrenC" in the interest rat"
ana the possibilities "a Increased snl-
W. resulting from holding the sCcuri-
ties together and administering them.
as proposed by the committee are rep
resented hy the stock uf the new cnm-
panN iO hr Issued tn ia" asserting
note holders IN the proposition nxed hy
the plans"
The doposiia,irs uudor the plan ur
the organization are the Mercantile
Trust company of New Work aud IN.
American Loan q Trust company OF
Boston. who will receive deposits un-
der the plan made.