Show U P CONSOLIDATION I Why the Short Line and O E N Are Wanted A Dromincnt Union Pacific official makes an interesting statement concerning con-cerning the proposed action of his road to increase the common stock for the purpose of making the exchange for Oregon Short Line stock A circular has recently been Issued reciting the action of the directors and the stockholders stock-holders to whom it was addressed wlll meet at New York City on Jan 10 to reject or ratify this plan The reasons assigned for this act are about as follows fol-lows Ali Of the auxiliary properties requi site to the rounding off of the reorganized reorgan-Ized Union Pacific system such as the Union Pacific Coal company the Pacific Express company stock the OccIdental Oriental Steamship companys stock and many branches and other properties proper-ties have been acquired without creating creat-ing any indebtedness beyond the 90 000000 first mortgage bonds issued unIT un-IT the reorganization The company ia consequence financially strong nthout any 110atlng debt and with cnsiderable resources To secure control con-trol of the Oregon Short Line has tall t-all times been one of the problems be fqre those in charge of the reorganiza ttn While not quite onethird in r gount of the stock of the Short Line was secured In the Interest of the I t7l1icn Pacific at about the time its reorganization re-organization became complete liberal purchases in the oven harket had to be made at Drices considerably above the rtiing price for Union Pacific stock to ac luire control but even with this it was not found possible to secure an aCtual majority until some of the Bos tit holdings were purchased in large blocks a couple of months ago by hich the Union Pacific secured control con-trol of the recent election Without the Short LIne the Union Pacific would be greatis embarrassed through the com tiUon of the other lines through Denver connecting with the western road to Salt Lake and Ogden It is stated on good authority that several railroad lines have coveted the outlet to the Pacific secured by the acquisition ac-quisition of the Short Line which comes with the control of the Oregon Railway Navigation system and it was only by prompt and decisive action ac-tion on the part of the Union Pacific backers that such a contingency as losing these connections was averted The earnings of the ShOrt Line have howri a development justifying the permanent acquisition of this system and when the deal is finally consummated consum-mated the big Union Pacific system will forever by reason of its geographical geograph-ical position be the chief factor in transcontinental busIness |