The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-02-07


representatives of the bank alone have
participated in the work of roorganiZa
tion. These representatives. have, a.
far as in their power, given consent tu
the reorganization. expressed content
ment with the security underlying the
bonds and no difficulty is anticipated
on that score.
OF the s126, 900 Southern Pacific
stock to be sold by Union Pacific
slOS.000 900 Is deposited as part socur-
fly for oregon Short Line refunding
4s. But Union Pacific has in It's treas
ury s55.000000 Of these bonds and can
secure the release of about $6j 600, 900
Of the pledged southern Pacific stock
by cancelling these bonds The re-
mainder Of the southern Pacific stock
VIII he released from the mortgage by
the substitution Of other collateral. \
provision in the mortgage permits this
to he done and Tnion Pacific has ample
unplcdged collateral in its treasury,
such az s22 100000 Baltmore and onto.
$4,000 600 Chicago and Northwestern.
s22.5OOooO Illinois Central, s9,S5O 600
New York Central and slSi5,0o0 81.
Paul preferred.
Tho sl7,2O0,O00 preferred and st7.-
275000 common stock Of the Central
Pacific which Union Pacific is To rur-
chase are pledged TO secure an issu of
southern Pac,fc bonds ot which
s3i2ls 900 ore outstanding. Tho 1'np
Pacific owns s5449,O00 Of these bonds
and will turn them over - Southern
Pacific in part payment for the Central
Pacific stock II has been decided that
II is not necessary 10 call the remainder
Of tham. earnings Of the Central Pacific
heinx much more than sufficient 20 pay
the interest charges.
The sl26.G50.0 900 southern Pacific stock
offered for sale to the stockholders oi
Southern and Union will he underwrit-
ten by a syndicate headed hv Kuhn
Loeb & Co. The syndicate viii under
write the entire offering. hut the price
OF substantially par for southern Pacific
seems to he assurance that the greater
portion of the bonds will he subscribed
for. In 1901. when Union Pacific ac-
quired control Of Southern. the latter
stock was selling around or below so
and It has been long understood that
90 was approximately the price which
Mr.. Hartman and his associates paid
for the Union Pacific holdings.
The ratio Of subscription for the
Southern Pacific stock is one share for
every four ehares or Union common OF
Union preferred held and one share for
every three shares of Southern. Stock
holders will have the right to subscribe
UP to March 20. The Southern Pacific
dividend, which is added to the price,
9S&, at which the stock is offered Is
PAYABLE April I. so that tho nr,ce or ,ho
stock IA annroxim,+o,v nov
A a,rsctnr -, ,ha I-r, n,s
., nun a'iiic' COM
e on III. ia'' .iat 're separation
OF Union racine and southern Pacific
is now complete. remarked incidentally
that "the control OF the Southern Pa :
cific will now he in the market for any
aspirinp line like the Rocl, fs,ond -
nurchase" 7. u.os eta n W
No n..o,,,,,on g., .' ' ' 'na.
-. go, oi any ncquis''ioh OF
f1och is'aho pS southern Pacific or vice
versa rave neen undertaken. The sys-
TENS connect at III Paso and now have
ua,l'c arrahsement whereby Southern
iAellc Trains from southern California
arc routed over tne ROCK Island to Chi
cako' ana rock lsiand trains from Chi
caso are sent over the southern Pacific
u sou'''ern Sa!iiorhia'
ouuse ~ >. Lo'et'' chairman OF the
,eu.s.s e;as '.lnii,',ee . OF 'he Mon Pa
e '''e i'''o"'hs statement last
''es
AZ the pian ~ consum'nated the lease
,na Spv,he,n ., pa.,ae .ne Cem.rai iacihc by
cn,rs. cease ana ,hs csr,rai a., ~ H. "'
way Company will enter upon the onnr,.
tion OF It's own lines, with the complete
organization IN California from rres!den;
down, The president OF the Central Pa
u.mt ,,t,h WI, na,s tui!S az nnrh authority
dent Of me Son,hern paciec ",,.nr as rre w.,
over its lines. '''''
The published reports that the Central
Pacific is 10 he leased 10 or merged into
the Union Pacific Railroad are without
!ouhaa',on. ', ron Inc mon fachcs control
Csn,,s, psc;ec ,sp ,Sa np,,a %, s'Ucn Ds,, ol .he
ried on bv the Csntrai ps",,,c pai,,yav