Omaha daily bee., 1899-09-24
WILL COMPLETE ABSORPTION
Outstanding Stock of Union PaCifo's Western
Extensions to Be Acquired,
INCREASE OF CAPITALIZATION NECESSARY
Charter VIII lie Changed TO Admit of
capitalization Of S1O0,1TS,7OO and
Powerful Through Line
VIII he the Result.

Pursuant to the recommendation OF the
board of directors of the Union Pacific 1t
can safely be said that at a special meeting
Of the stockholders, to be held In Salt Lake
City Monday, october 8, the preferred capital
stock and common capital stock will be in
creased sufficiently to permit the acquisition
OF the outstanding preferred and common
stock of the Oregon Railway G. Naviga-
ton company and the Collateral Trust III
come b. 4 per cent bonds of the oregon
Short Line company.
Through the acquisition of the oregon
Short Line bonds the Union Pacific will
strengthen it's proprietary interest in the
Short Line company and effect an advan-
tageous change in the character Of securities.
With the securing of the preferred stock
of the Oregon Railway C Navigation COM
pany and Of the common stock of that COM
pany-exclusive of that already acquired and
held by the Short Line company-the Union
Pacific will confirm and complete its control
of the Navigation property, which was par
TALLY secured through the conversion of
oregon Short Line stock accomplished in the
early part Of the present year, and will OBJ
tain ownership, practically absolute, of the
through line to the Pacific coast from
Omaha.
AS is well understood the Oregon Short
A'AN eAN o'N6Sh A " ANdNi6ullOhC VII
panies constitute extensions and auxiliary
lines of the Union Pacific, which substan-
TALLY owns all the outstanding capital stock
of the Oregon Short Line. The latter COM
pany, in turn, owns a large majority of the
common capital stock of the Oregon
Railway & Navigation company. BY the
acquisition of the outstanding preferred
stock of the Oregon Railway G. Navigation
company, also the common stock of that
system not already owned by the Oregon
Short Line, the Union Pacific will bring into
one great system these three railroads.
The Importance of such a move can readily
be appreciated when it is that
the Oregon Short Line is the connection of
the Union Pacific at Granger, Wyo., and
extends to Huntington, Ore, where it con-
meets with the Oregon Railroad and Naviga-
ton company, which has a direct line to
Portland.
The directors of the Union Pacific assert
that this complete absorption can be OBJ
tanned by the issue and exchange for the
outstanding preferred and common stock
of the Oregon Railroad and Navigation
company, and the bonds of the Oregon Short
Line or Union Pacific preferred and COM
mon stock in amounts equal to the securi-
ties desired. In order to bring this about a
change in the charter of the Union Pacific
is necessary to make euch an exchange.
The preferred capital stock will have to be
increased by S25, 900, 900, and the common
capital stock, $7,718, 600. This will bring
the entire amount Of capitalization of the
Union Pacific to s196, IFS, 700, and it is pro-
posed, in the event Of the changing of the
charter, to have this capital stock repre-
scented by 1,961,7S7 shares, each OF a par
value of 500, and each entitled to
nnn vnta at QnV mpptlnP OF
the stockholders. OF such capital stock L.
900, 900 shares may be issued as preferred
stock and 961, 7S7 shares as common stock.
1t is likely that the distinction between
the preferred and common stock will be
designated SO that the preferred stock shall
be entitled in preference and priority over
the common stock of the corporation to divi-
dends in each and every fiscal year at a rate
not exceeding 4 per cent per annum, pay
able out of net profits. Such dividends will
be non-cumulative and the preferred stock
will be entitled to no other or further share
Of the profits.
Stockholders Of the Union Pacific express
themselves almost unanimously in favor of
this plan, and its completion according to
the terms set forth in the foregoing Is a
certainty. Such an absorption as proposed
will make of the Union Pacific and it's allied
branches one of the greatest, most powerful
and influential railway systems in the world.
This special meeting of stockholders on the
9th of next month to consider this PROPOSE
ton will be followed on Tuesday, October 10,
by the annual meeting Of the stockholders,
to be held in the Salt Lake offices of the
Union Pacific, for the election of fifteen
directors and the transaction of such other
business as may come before the meeting.