The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-02-17
PACIFIC ROADS
WILL PAY UP
Huntington Announces
the Settlement.
TERMS OF THE NEW DEAL ;:
FULL AMOUNT OF DEBT TO BE
PAID. :: :.~
There Will Be Complete Reorgan-
ization of the Great Property
in the Near
-; Future.

Special Dispatch to The Call.

NEW YORK, Feb. It, Coils P.
Huntington stated : officially to-day
that the Central Pacific Railroad had
reached, a settlement with the Govern:
ment for it's Indebtedness on account
of the Central Pacific and Western
Pacific Government aided bonds. He.
further said that none of the details
of the reorganization of the property,
of which the payment of the Govern
ment debt was an important portion,
were ready to be made public, as
changes would very likely occur.
The company, under the agreement
which was entered into between the
bankers representing the road, its offl-
Gals and the Government commission,
will pay to the Government the full
amount of the outstanding Indebted
ness, both principal and interest. This
is to be done under the provisions of
an act passed by Congress which per-
mitted the company to divide It's IN
debtedness up into equal payments. to
be distributed over period or ten
years.
The first payment to the Government
will be made in cash, the balance will
be secured by per cent notes, interest
on which is payable semi and
the notes to be taken up year by year,
the last of them expiring ten years
from the date of the signing OF the
agreement These notes will be secured
by deposits of Central Pacific per cent
bonds.
The debts of the Central Pacific and
Western Pacific roads to the United
States Government on February were
S,S12, ia. The Central Pacific owed
sos, S95, 120 principal and s36, 604, 385 inter
est, less s9,1OO,452 of judgments, bonds
and sinking fund, leaving a debit bal
ance of $50, 389, 052. The debit balance of
the Western Pacific on the same date
was S., 423,662.
a syndicate of bankers, of which
Speyer & Co. of this city and Speyer
Brothers of London are the heads, has
nearly concluded arrangements for the
reimbursement of the finances of the
Central Pacific Railroad. 1t Is under
stood that a new mortgage OF some
thing over $4,000 600 will be issued,
portion of which will be exchanged Tor
the present outstanding bonds or the
company, and the balance used for the
settlement of the debt to the Govern
ment.
: The immediate cash requirements
will be met by the sale of block OF
the new bonds, which have already
been underwritten by the syndicate.
The balance of the bonds set apart Tor
the retirement of the Government DEBT
will be held by the Government as col
lateral security for the notes Whicn the
Government accepts in payment. These
bonds will be taken up in a similar
manner as each one of the notes falls
due. 49,
1t is likely that the stockholders will
be assessed a small cash payment ana
that the. present stock will be taken
IN in its entirety by the Southern Pa
cifie Railroad as an asset against which
a new issue of the Southern Pacific
stock will be made to the present Cen
trail Pacific stockholders, share for
share. with the addition of $4,000 in
Southern Pacific bonds to each holder
of 100 shares of Central Pacific stock.