Show UNION PACIFIC NOTES financial plan to be issued to raise funds forb for B a 0 purchase la in view of the tle disclosure made in tho the annual report of the pennsylvania c company that that corporation has VIM among ong its assets 1 4 12 1 2 per cent collateral notes of the oregon short une line railroad due in 1907 wall street yesterday indulged in considerable speculation as to the manner in which the union pacific would take up the notes says the new york herald it may be seated stated on good authority that thac the union pacific In interests teresta will adopt a financial plan this fall to provide for the redemption of the notes but it Is also authoritatively stated that the financing will not take the form of a large short term note issue advantage was vas taken of the discovery to to a spread P read al alarmist armst reports in brokerage circles that the union pacific would bring out a short term note to issue any such Intent intention iou was denied by pacific Inte interests resti who said the report was entirely unfounded the collateral notes of the oregon short uno line werd given in payment to the firm of Kuhn loeb co for about shares of baltimore and ohio stock which the banker bankers had bought from the pennsylvania railroad E H in hla his testimony before the interstate commerce commission stated that the union pacific in buying the baltimore and ohio holdings of the pennsylvania had paid only a portion of the purchase price which was to be completed in subsequent installments the cost of the baltimore and ohio stock amounted to more than for the remainder 36 the collateral notes of the oregon short line railroad were given to kuhn loebac co the noted are due in september 1907 it now appears that the bankers turned the notes over to the pennsylvania railroad in payment for their transaction union pacific interests said yester day they had paid the oregon short line notes to the bankers and did n u at t know how bow they had disposed of them this assertion gave ilse rise to in inference forence that the action of the bankers in not retaining the securities was somewhat unexpected by the union pacific officials it appeared to be generally understood in financial circles that the pennsylvania syl rania company expects that the notes will be redeemed in cash owing to the heavy expenditures for improvements that ore are being made by the pennsylvania system it was practically admitted however by the union pacific interests and their financial asso associates clates that the tile oregon short une had not sufficient cash in its treasury to redeem the notes in consequence it ig to supposed that bonds already authorized by the ther union pacific may be sold to raise the necessary amount |