New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-12-06
HODCRAN'S
OvERSHOES.
BEST QUALITY ONLY.
BROADWAY ~ WEST 1!D SI;i,,
COR. GRAND STREET. ADJ. FIT I'll AVE. HOTEL
UNION P1CIFICS FUTURE.
AN UNOFFICIAL PLAN OF REORGANIZATION
OUTLINED.
PROPOSING THAT THE GOVERNMENT ISSUE
$500 1000 IN ; PER CENT BONDS AND

Boston Dec 5.-"The Boston News Bureau out
| lines the following plan for reorganization %
the Union Pacific and adjustment OF us ueo'
to the Government:
President Clark, OF the Union Pacific VIII DE IN
New-York this week to confer with the Reorgan'za-
| ton Committee. Mr.. Clark Is no prophet, ana no
enthusiast upon the present business situation IN
the Union Pacific territory but he VIII be apie 10
give the Reorga nzation Committee as eNphct III
formation regarding the property physically Nv
can Mr.. Mink regarding the corporation hnahci''Y'
The best basis for railroad reorganization Is nope
| In the future and the best basis for such hope
is improved earnings About next summer the
Union Pacific Will have finished tWeiNemoh'i
OF the worst comparative earnings any raliroau
corporation In this country ever experienced anu
tcompared with that twelve-month period earnings
ought 10 show steady improvement. With present
earnings n matter Of history and forming basis
for future comparison. one can readily fgure upon
Union Pacific values and formulate those values
into n reorganization plan. but the worst feature
OF the present with which the Reorganization COM
mittee will have TO contend Is the poor state OF
business upon the Union Pacific lines and the
comparative decrease in earnings which must De
shown for some time from month to month
The second most difficult problem which the com
mittee will have TO face is involved III the iac'
that. with the exception Of five minor issues
amounting In the aggregate to less than SVVV'""
all the sixty issues OF Union Pacific bonds are
nrattv well secured by tangible property that IS
as valuable to other railroad systems az 10 the
Union Pacific. and some OF when might pe '"o'e
valuable to railroads having termini at 'hicaso
than 70 the Union Pacific which gets but shorter
haul to Omaha.
Tho Union Pacific has si22 100000 OF primary and
wcll-secrrcd bonds 1t the Government $e-
900 cpo which Is not very well secured eAc'p' w
reason OF the fact that the Governments ""'"e
other creditors has the credit and the power that
can take possession Of the company and work out
-srlH M of
issues. and 10000 OF questionable bono issues
which can be treated with upon some basis APP
preaching a true valuation. We submit te'e.o'''
that IL an attempt is made to rearrange 'he ~.
900 900 of Union Pacific Indebtedness. ana give i"'
navment 70 the Government. while earnings are
decreasing IL can be best done Tor All ii'e'eS''
the creditors the Government and the pupilc gen
erallv upon some such comprehensive plan as
the following
F,rst-The Union Pacific stockholders 10 sur
render as at present majority control OF tue P'"P
ertv 10 the Government. which can be represented
by seven directors out OF twelve one drerior ub
appointed each year. to hold "A He POSITION, sun r
ject removal for cause, to nave HDe'H' S''' A"'
no secondOThe Government issue 800 10000 per
cent bonds at par 'ake up S All Of the three
years ending January ]. lS'i, pay thr no, - ~.
debt and Leave from 100000 TO a" 3;,c,a No one
half Of which could be used i9r tne fas r Di
road and one-half remain In the treasury Tor nut
ure development CON,
Thrd-Make these bonds perpetual at 3 per cent.
and permit them TO b. used at par az "a p"S'S io'
National bank circulation ,.u,.o, c,o,.s 20
This plan would enable the nitel S,a' fs,l 20
treat its present outstanding GoysInment DH in
and their redemption at mS,dy ,nn resent Ma
tiona banking system and the withdrawal oil WV
vi" II should not give the Union Pacific ADVANTAGES
over 9th, roads but would Offset tho high cApl..
rate place it, charess per n'le upon an ,h
NV with other railroad lines II "9uiu .nH"Ir W
state commerce Commission by the moral nii'i;
ence OF standards of Government aascn.pns AMI
i4s hates !" TRANSPORTATION OF CONSEQUENCES =" ns "
and transactihg business with almost every othti
railroad In the United states thr % , ,h
would be in position 10 srn H igSaon II
could be made cautious experiment Oh 'o, go, IN
question OF whether the transportation In this conn-
try can be as economically and usefuly carried for
lions The Government has got 10 take up me
problem Of s relations win NJ mon t,e'', ,y
through majority of receivers ana VIII pl naHc
maturing the next few years S;"oyD OF c nxernc
ment issued on account OF Pacific railways IL Is
first transportation problem ana II is not
whether the Government can ioreclose ana sdTe ,h
Union Pacific system is disintegraied 1t t. figured
that the Govenmenrs second mor,Eage ON prr
OF the main line OF the Union racine ~ Ho' "o''"
% cents on the dollar.
at No ss Wall-st. and selected Oliver Ames. 3D. OF
pos,on 10 FIJI the vacancy the board and the
Executive Committee caused By the death OF FRED
erlck T.. Ames Memorial resolutions were adopted.
There were present r. i. Atkins ;. r. h. ClarA'
Henry n. Cook. f. Gordon Dexter. General Gren-
VILE NJ Dodge George }. Could. Gardiner NJ Lane
Joseph H. Willard. Alexander +. Orr. Sidney Dill
Ion Ripley Russell Sage. and the Government d.
rectors-John W Doane. General FItZhugh Lee and
Majo Joseph W. Paddock.
Subsequently there meeting or the re-
ceivers including s II. II. Clark Oliver W. Mink
and John W. Doane. but 1t was said that only
routine business was transacted The receivers
were too busy to spare time for comment upon the
Drospects OF the company the plan OF reorgani-
cation suggested in Boston dispatches senator
Calvin s. Brce. chairman Of the Reorganization
Committee. and other members OF the committee
declined to discuss the plan. II Is stated 10 De
purely unofficial but there Is reason TO believe that
the suggestions have been considered by some OF
the members of the REORGANIZATION Committee. No
definite step will be taken by the COMMITTED now
ever for several weeks al least.
The action Of the committee Is hampered by the
uncertainty az to the feeling in Congress with re-
gard to the Union Pacific road. although no legis-
lation 10 likely 10 be attempted before Senator
Bricc. who H. chairman OF the senate committee on
Pacific Roads. reports the result OF ms Soirrehns
terests. The present charges upon the mon ia,
cie Railway proper amount nc 10 nDSu' axary and
controlled lines, the charges exceed slig".W Inc
scheme for a S81OJOGD per cent Government
issue to cover all existing Indebtedness would re-
duce the fixed charges TO $3VJ,VD year, or 10
about 81 10000 If $50gO.O00 Of the bonds were re-
tanned in the treasury OF The company. Whiie the
first mortgage bonds OF the company now com
mond a premium other issues are considerably
below par and ii Is believed by some persons That
the entire debt could be refunded at an "a, average
which would bring 1t within the limits OF ssUV"ew
or s22G 10000 leaving the remainder OF the $oVs-
90 issue proposed be used for needed eNpeidl-
lures upon the property. - III,
Rut any scheme OF this kind would not be with |
o,,t affections. Aside from the matter OF Govern |
mpnt policy. the conflicting interests OF different
I'll sses of security holders might prevent an edu-
able exchange OF bonds. and 1t Is not yet certain
how far the movement TO secure an indepenGentt
receiyer for the Union Pacific, Denver ana cur
may extend other controlled lines In the general
svstem The ACKNOWLEDGMENT of the system would
H.. gratifying to many competitors West, ana per
hans a separate branch. wrested from the main
nnr Inducements