The Aberdeen Democrat. (Aberdeen, South Dakota) 1???-1909, 1908-03-27
WILL MORTGAGE THAT PART OF
IT'S SYSTEM NOW UNMoRT-
Gagged TO RAISE FUNDS
Stockholders Will Meet in May to
Authorize the Bond Issue. Money
That is to be Raised is About $780,
100000. Board Of Directors Of the
System Refuse to Start Suit
Against Hartman Rogers -stillman.

New York, March 27.The stock
holders of the Union Pacific Railroad
company will meet on May 5 to auth
orize an issue Of bonds to be secured
by a mortgage on all lines Of the
Union Pacific which are now un-
mortgaged. These lines aggregate
1,650 miles, according to official an
nouncement. The amount and pur-
pose Of the proposed bond issue were
not made public but it was currently
reported that it would be $4,000
900 or $50,000,000 This, it was
said, would ibe sufficient to cover the
company's financial needs for some
1 time and it was expected that only
a portion Of the issue would be made
in the near future.
To facilitate the bond issue the
stockholders will be asked at the
same meeting to ratffy the taking
over by the Union Pacific Railroad
company of the physical properties
of the Leayenworth, Kansas and
Western Railroad company and OF
the Topeka e Northwestern Railroad
company which are already, through
ownership of stock a part of the I'M
ion Pacfic system. These roads TAX
en- together have about zoo miles OF
track and are unmortgaged. 1t is
proposed to include them with other
unmortgaged lines by which the new
issue of bonds is to be secured and
in order to do this, it is necessary
under the laws of Kansas by which
the two companies were incorporat-
led, that the transaction should be
ratified by stockholders.
The directors by vote declined to
grant the request made by certain
stockholders that the board Of direct
ors would bring suit against u. I'll
Harrison, I'll. H. Rogers and James
|Stillman, to recover profits which
were alleged to have derived from
a sale Of the stock Of the Illinois Ger
tral railroad company securities com.
pany and the ST. Joseph and Grand
Island railroad company othe Unio1
Pacific company.
In giving their reasons for refusa
to bring the desired action, the di.
rectors stated the interests Of Messrs
Hartman, Rogers and Stillman II
the stock of the Illinois Central raj
road and Of Mr.. Harrison In the stock
LOT the Railroad securities company
land the st. Joseph and Grand Island
company was fully disclosed by thu
Idirectors before the transaction anl
purchase was unanimously authorized
by the other members Of the board
while Messrs. Hartman, Rogers ant
IStillman We're excused from voting OF
THAT subject. It was also stated bl
the directors that the proposed pur
lchases were investigated by a com
mittee of three disinterested direct
Iors. who knew the facts and advised
the purchase. The directors declared
that this action has been approved
j by the stockholders Of the Union Pa
cific and that 1t would be unWise
Iunwarranted and detrimental to th
interests OF the company to attemp
Q cancel the purchase or question it
validiy. Furthermore, the board de
clares that the board Is opposed to i
as q matter OF business policy. TIL
directors stated also that they ha,
no knowledge that any directors 8
4 the Union Pacific had any interest ii
the LOS, 900 shares OF Illinois Centra
stock purchased by the Union Pacifi
from Kuhn, Loeb & Company an
that they were informed by that firr
4 that no directors held any such in
.lterest.