Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-05-05
DEAL WENT THROUGH BY PROXY
Was Engineered 10 the Small iriyau
Office Of General Agent
D, r. Gray
QUITE PERFUNCTORY PROCEEDING
Among Those Present Were Vice Presh
dent Cornish Of New York aud
Judge Kelly Of Omaha.

For the second time within nyc ycnrs
the local headquarters Of the Union
Pacific has been made the scene Of lhQ
authorization Of the issuance Of add
llonol stock OF the Union Pacific IN
the sum of slOO0OOOOO IN each case,
This action was taken nt the meeting
" tho shareholders held here this after
noon. The affirmative vote In favor
of the issuance was represented by H.
llN,O2i shares Of common stock and
i5ti6l shares Of preferred stock
when seen after the meeting adj
Jouwod az 2iO y, ma all the onlcials
questioned proicsHol the protoundost
ignorance as to what was TO be- done
Win tho additional FUNDS thus ~
cured,
10 issue tlOO0OOOOO worth OF prc.
forrcd stock, on not To issue. wns tho
question that was oston8ibly debated
I'm SAT- Lake this afternoon at tho
special meeting ot the shareholders of
The Union Pacific which was held IN
tho locul ticket Office of the company,
col south East Temple street
There was no rush OF fron2od stock.
holders 10 register their vote Every.
hy four gentlemen who held the proX.
les Those present were w, -. cor.
nlsh Of New York, vice president OF tho
various Hartman lines, Hon, Joseph
Y, Smith, director, Judge Kelly Of
omaha, chief counsel for the system,
and Judge Lee Grand Young
Under the law the polls were Kept
| opon from noon to shortly after 2 r. M,
| whom the result was announced as stat
| cd
The 100000, Ooo deal was engineered IN
| the private office of General Agent u,
| r. cray a small room consisting Of a
| ground glass ana mahogany partition
some l2Sl2 feet IN area. No pomp AMI
circumstance surrounded this arrang-
Ing for deal that represented the to-
tai national debt Of small republic.
Apparently the minutes Of the meet
Ing were all typewriter ana prepared
I'm advance They were simply read
over the shares checked w ana total
lod, the papers signed, ana the decd was
done,
Tho increasing of the preferred eto'k
by 500 600 900 and authorizing the H.
suanco OF such additional stock from
time 10 time as needed VIII make the
total authorized capital stock OF tho
company 1896, Us, 700, consisting OF 5000"
00O 900 preferred ana ilO6,liS com
mon, President Hartman, IN An olilclN
circllar says
"Of the slOOOOOOOo first lien converts
ihlo ponds originally Issued by the com.
pnnV So 5000 have been converted
um to date into common stock, and II IN
assumed that the remainder viii liko-
wise be converted before May, 1905.
Fixed charges have thereby been grcn,-
~ diminished and the equity behind the
preferred stock Corroepon1lngly IN.
croi sud and with the enhanced credit
of the company the market value Of IN
preferred stock N aud for some months
has been about par This situation en-
ablps the company To pursue the Wise
ana conservative policy which roqulrrs
that u corpora ion, whenever possible,
should nGanco AT least Il part ot Ms
capt. n requirements especially such Rs
arise IN connection with the acquisition
of stocks OF other companies through
the Ssuo ~ stock rather than through
the creation of llSod lntorost'bonrlnS
obligations
"rho ADVANTAGES " such a policy OY
obvious, Oul VIII inuro to the benefit
Of the holders OF both common and pre-.
forro1 stock, I'm that the creation ~
additional bonded indebtedness ranking
and carrying llNed charges ahead OF
the stock may ho avoided and the credit
aud position OF the company further
advanced The company moreover VIII
be placed In position admitting I'm du9
time Of a moro liberal attitude toward
the distribution Of its surplus income,
AZ the common share capital has been
ana VIII BIZ further added 90 BY thu
conversion Of the convertible bonds, the
directors are OF the opinion that thu
common stock should not IN the near ~,
luro be stlll further Increased they do
however, consider II prudent that tho
company should prepare AZ this time 10
hnHneo coming requirements through
Issue of preferred stock AZ par when
practicable, TO an extent sostOhllshlnB
the formerly existing proportions be-,
tween the common and preferred stock
"The directors, therefore, recommend
the creation of an additional issue of
preferred stock equal In every respect
10 the preferred stock at present out,
staining and TO that end have called a
spoclul meeting of the stockholders foe
the purpose OF authorizing an Increase
NJ the preferred capital stock by tn
amount ~ 500 00O0 and It's issuance
from time 20 time a. needed, thus max
ing the authorized capital stock of thn
company ,3o6l1S,10O, consisting of 5000
oOOOO of preferred stock and Sl96liS,.
700 OF common stock
|