Los Angeles herald., 1908-03-27
$40, 900, 600
MORTGAGE
IS PLANNED
UNION PACIFIC WILL HAVE BIG
BOND ISSUE
ENTIRE SYSTEM TO BE PLACED
UNDER "BLANKET"
Stockholders VIII Be Asked to Ratify
Taking Over of L., X. & w.
and T. & NJ. W.-19o0
Miles involved
Nv Asanciated press

BY Associated Press.
NEW YORK, March 26.-Stockhold-
ers of the Union Pacific Railroad COM
pany will meet on May to authorize
an issue of bonds to be secured by
mortgage on all the lines of the Union
Pacific which are now unmortgaged
These lines aggregate 1850 miles, ac-
cording to an official announcement.
The amount and purpose of the pro-
posed bond issue were not made public,
but it was currently reported that 1t
would be $40,000000 or $50000,000.
This, 1t was said, would be sufficient
to cover the company's financial needs
for some time, and 1t was expected that
only a portion of the issue would be
made in the near future.
To facilitate this bond issue the stock
holders will be asked at the same meet
ing to ratify the taking over by the
Union Pacific Railroad company of the
physical property of the Leavenworth,
Kansas & Western Railroad company,
and of the Topeka & Northwestern
Railroad company, which are already
through ownership of stock part OF
the Union Pacific system.
Roads Unincumbered
These roads, taken together, have
about 200 miles of track and are un-
mortgaged. 1t is proposed to include
them with the other unmortgaged lines
by which the new issue of bonds Is to
be secured, and In order to do this 1t is
necessary under the laws of Kansas,
by which the two companies were in
corporated, that the transaction should
be ratified by the stockholders.
The directors by a vote declined to
grant the request made by certain
Stockholders that the board of direct
ors bring suit against Z. H. Hartman,
II. H. Rogers and James Stillman to re-
cover profits which they were alleged
to have derived from the sale of stock
of the Illinois Central Railroad COM
pany, the Railroad Securities company
and the ST. Joseph & Grand Island
railroad to the Union Facific system.
The suit was requested foy L. A. Stor-
rers and Henry r. Buck of Hartford,
w. A. Arnold of Willimantic and A. c.
Bates of East CRANKY, Conn.
Reason for Refusal
In giving their reasons for refusal to
bring the desired action the directors
stated that the interests of. Messrs.
Hartman, Rogers and Stillman in the
stock of the Illinois Central and of Mr..
Hartman in the stock of the Railroad
Securities company and the ST. Joseph
& Grand Island company we're fully
disclosed to the directors before the
transaction, and the purchase was
unanimously authorized by the other
members of the board, while Messrs.
Rogers. Hartman and Stillman were
excused from voting on the subject,
It was also stated by the directors
that the proposed purchases were in
vestigated by a committee of three dis
interested directors, who knew the facts
and advised the purchase.
The directors stated also that they
had no knowledge that any director of
the Union Pacific had any interest in
the 10000 shares of the Illinois Central
stock purchased by the Union Pacific
from Kuhn, Loeb & Co., and that they
were informed by that firm that no di-
rector held any such interests.