The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-06-26
Mortgage Secures S50,000,000
Thirty-Year Coupon and
Registered Bonds.
ROAD WILL BE FINISHED
BY SEPTEMBER z, 1903
Main Line and Twelve Branches
Will Aggregate 1921
Miles.

The indenture of the new Western
| Pacific per cent mortgage is Issued
| The mortgage secures $4,000 600 thirty
| year coupon and registered bonds,
dated September ]. 1908. bearing inter
est from March !, 1905. Interest pay
able March | and September l.
The coupon bonds arc issued in de-
| nominations of $1,000, cEchangeabe for
| ten bonds OF Sl00 each. Registered
bonds are all $1,000. The whole Issue
| is redeemable at 105 and interest ON
sixty days notice, and has sinking
fund of $4,000 per annum beginning
September ], 1910
The property pledged Is as follows:
Main line, Salt Lake to
San Francisco, about. 500 miles
Twelve branch lines, ag-
gregatinS So. ...,...... 42l.09 miles
Total .......s.... ......s.l, ,2H.09 miles
Three contracts with other railways
are pledged. as follows:
First-Contract OF tho Rio Grande
Western TO purchase second mortgage
bonds of tho Western Pacific to cou,-
plete Western Pacific from Salt Lake
to San Francisco.
Second-Contract Of Denver & Rio
Grande. Rio Grande Western and West
orn Pacific to maintain a Joint trans
portation system, and agreement OF
Denver & Rio Grande and Rio Grande
Western to buy from Western Pacific
unsecured obligations sufficient to meet
any dencit in the interest and sinking
funds, etc. OF the Western Pacific.
Third-Contract between Missouri
Pacific and Denver Sc Rio Grande to
maintain through line Of tranSporta-
tlon, partly for the benefit Of Western
Pacific.
Fourth-Traffic contracts that may
be made between Western Pacific and
IL >ra ,1a ,f al ~
and Colorado & Southern and Colo
RADIO Midland or either of them.
Road Completed by 1908.
With regard TO the second contract.
which has the appearance of an out
and -out guarantee of interest, 1t must
be noted that on page rs of tho inden-
ture It is provided that in case of
default and foreclosure this contract
IS exempted from sale. This provision
would seem to afford a method where
by the supposed guarantee could be
evaded.
1t is provided that interest on oil
bonds shall be paid up to September,
1908, out OF the proceeds OF the sale
of the bonds These proceeds are paid
over to the Bowling Green Trust COM
pany and to other trust companies ap-
proved by Blair 6 Co, William Salo-
mon & Co. and William A, Read &,
time on deposit more Of this money
than would equal half Of It's capital
and surplus. The trust companies arc
TO pay interest, but the rate Is not
stipulated.
Western Pacific agrees that 1t will
complete and equip the main line prior
to September 2, 1905 with adequate
terminals at Oakland, San Francisco
and Salt Lake City. The route OF the
main line may be changed but is OUT
lined in the mortgage as follows:
Route Of Main Line.
From San Francisco by ferry and
barge to Oakland thence southeast
and east to the boundary line between
Alameda and San Joaquin counties;
thence northeast to Stockton; thence
northwest and north to Sacramento,
Marysville OroVille, along the north
fork of, the Feather river. along Span
ish creek and Spring Garden creek,
along the middle fork of the Feather
river, east across Sierra valley to
point on the boundary line between
California and Nevada, thence due east
across Nevada and Utah to Salt Lake
City.
In case OF default the trustees shall
take action for foreclosure on the re-
quest of 20 per cent of the bonds, but
the holders Of 80 per cent have the
right to control the method Of fore
closure and sale. and to direct the
trustee to declare the bonds due or
to waive such declaration.
AS to the agreements pledged under
this mortgage, 1t is provided under
section of article that the Western
Pacific will enforce all these contracts
by suit or otherwise; and that tho
trustee. on the request OF 20 per cent
of the bondholders, also has the right
to enforce these agreements at the
expense of the Western Pacific. Any
| change III these agreements must be
approved by two-thirds OF the whole
amount of bonds Issued and author
| i2ed.