New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-02-28

the amount CO those bonds. didn't your Ave
Q-WeIi you finally got out Sl09Oe0,Q0O Of bonds
of the lew company. didn't your A.-But MOI al
O.-,Jo. but car You tell me how many were not
used Cor tae purpose CO reorganization and to pay
but I remember that a considerable amount was
later on ~ the new compsny for rs &C ZIP
Q.-How much preferred stock did the new com
zajion in round figures 81 10000 reserved to dis
pose Of equipment obligations ana reoTganiz aa
for settlement Of the debt Of the United states and
.or extraordinary requirements IN rouha HsureS'
Q.-Then Mr.. Kahn, how much did YOU pay the ne
excess OF 100000 wasn't it-you recall 1t was
over 100000 finally paid? Al thlnN 80, rgenoent
to pay less than S00OoO 600 and that was disapproyed
95 6 by 6 52e PssasSf and All T 6nR so S
Q.~You issued also $6l.ooo0oo Of common s'OcA'
0.2What was that common stock issued for?
Common sock was Issued in Nxchange for common
stock oR the Union Pacinc Ral5Wd! oui in ~
"oc HaW mnch w Wsf9 he assessment that
called on common stock-Sl0 q share wasn't II
Or Si5-whlch was it? A-The common stock toe
the plan says, win be assessed at the Tale Oh go
Q-Now. what did the subscribers 10 that $40 81,
assessment in new preferred stock par, and also
the new company. I am quoting from the plan
PLAN OF REORGANIZATION.
$50 that. IN a nutshell, the plan of reorgani4Iss
.
bonds 100000 Of preferred stock, = portion OF
which was used 10 pay the common sIocR s ss
share, and SCI 100000 Of common stock. which was
Of the BANKRUPT I5' road? That is right.
Q.-Alakiug d total capitalization Of S2S6,oo5vU;
SOCK and S fun funded debt Of only sol So did it no
Al don't see that the plan shows. or course
o-What was the capital stock? $50 ssS5oo
Q.-As against a total issue Of securities by the
new company of S2860Go0oo-an increase of $34 4o,-
rho agITilF mt mn - NiT
cause part that capitalization was used later
on for additional equipment ana otner o
ments; il not all used to take up the $ZOIVHVu
Q.-Every share Of the common stock Of the pres
cnt Union Pacific, 50 far as u was issued AT the
time Of the reorganization was issued In exchange
So far as it was issued in the reorganizauoR-yes;
stock vas worth very little? ,A.-Of course; 1t was
same Class Of stock f that is now selling 10 or 49,
-Whatever II ls-the common stock or The ne"
cifc when was then issued was issued as a bonus
upon the exchange of the bonds Of the old corpora
not? Al do not think as a bonus. It was
issued as fair trade. refunding a per
cent bond for a per cent bond ana for 20
setting old per cent bond-interest At the rate
OF ! per cent me bond, and the rate OF
per cent on The new preferred stock
9-Noy after the reoTgaui zatIon oI the company;
myself went on the board
o-And up TO that time did you continue on the
a year ago: and perhaps might say IN this con
Pacific because we recognized that the reorganiza-
ton of the Union Pacific involved considerably
hich had bought the bonds, and for that reason
of course we did not cease to be bankers.
DIRECTORS OF OTHER ROADS
Q-Now during the time that Mr.. sehiH and
yourself directors Of the Union Pacific were
we we're directors-I was director OF the oregon
Short Line, became one shortly afteTwaTd and
oHWere either, of you directors, Of the Great
director Of the Great Northern for time. and
am aG not sure re 9 about q the latter S acme '+ '
Q.-When?, Al don't remember the exact date
and remained a director for the Great Northern
ao--Was that the last year. that he was in tho
tie oredt o Of PRe GREET t3 Nor6eT ana
that? Ale had been in the board Of the Great
what reason he went in, and don't know for what
Ole did not stay in the Great Northern from
any sense Of duty he owed it TO put It on its fee2
AHe had not reorganized the Greet Northern
Q:-The Great Northern never has been reorgar-
iZed2 A.-flxacty.
what position did you occupy with reference to the
mittee
Mr.. Kahn said Kuhn. Loeb & Co. were the
Pacific in the purchase Of Southern Pacific
stock. He said the negotiations for the purchase
Of the Southern Pacific stock were with A. G.
Huntington and Speyer & Co.
Q.-Now. Mr. Kahn. before YOU bought those Sc
curities or entered into any contract 70 buy them
didn't you have a thorough understanding with
Mr.. Hartman that the Union Pacific would take
them practically, Of course, subject 10 the approval
Of the bOarG2 Ave had this understanding
taat we. We're bound to offer to the Union Pacific
If the Union Pacific did not want them for any
reason could not buy them, then We We're stuck
with them.
Didn't you have understanding with Mr.
Hartman that he would take them? A.-Mr. Harri-
certainly was in favor Of taking them, pro-
Vided they could legally be bought, ana providing
the remaining members of the board were OF the
opinion.
Q.-You don't think you talked 10 any other
member Of the Union Pacific board? Al don [
believe so.
Q.-Are you sure Of that? Al say 7 don't be-
leVe 1t is q matter of seven years back. and
cannot remember every single step that was taken
in that connection, but in general way we uu-
dertook take the risk Of buying that stock /
remember the executors OF the Huntington estate