St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-10-14
UNION PACIFIC IN A HOLE.
Pres DENT CLARK kND COMPTROLLER
link MADE RECEIVERS.
CONDITION OF THE RAILROAD

Unexpected and Surprising Fall
ing Off of Business Made it I'M
possible for the Road to Pay
Interest and Meet Its Fixed
Charges-EIlery Anderson Will
Act for the Government.
OMAHA, Neb., Oct. 1S.-S. II. Fl.
Clark has been appointed receiver of
the Union Pacific road. Comptroller
Mink has also been appointed one OF
the receivers, and third will be named
later. President Clark, who was ap-
pointed one of the receivers of the road.
in discussing the situation this after
noon, said: 'Of course the bill for a
receiver was not unexpected, as the
careful student of railroad operation in
the past few months must necessarily
conclude after a review of the startling
decrease in gross and net earnings
which Western roads have suffered.
With the default in the payment OF
interest staring us in the face, the only
thing to be done to keep the property
intact was to file the bill of complaint
praying for receivers, and ask the court
to intervene. The property will be
managed for the best interests of all
concerned. Beyond this there is little
TO say, the court now having taken the
road under its protection"
Speaking for General Manager Dick
inSCn, General Solicitor ThurSton said:
Tile unexpected and surprising falling
off of the business of the system con-
NlOnpd all n1rtipS lptnTpStpI In the
preservation and Integrity of the prop
critics that 1t would be impossible to
meet the interest and other fixed charges
soon coming due, and thereby the Sys-
tenn would be subject 10 different ac-
tiOnS III different Jurisdictions, which
might, and probably would result i'll the
depreciation of the property. A large
part or its value, both for business
purposes and as a full security for all
its bondholGerS and creditors, demand
its maintenance and operation. The
present action virtually continues the
PRESENT MANA G MENT,
giving it the additional sanction and
authority of the court TO operate the
properties for tue real interest of all the
creditors and stockholders. The order
i'll the case is almost Identical with the
one issued i'll the Northern Pacific case
by the United States circuit court for
the district of Wisconsin,, and supple
! mented by auxiliary orders in ali the
United States courts along the lines OF
the Northern Pacific road as well as in
New York.
The receivers are in full possession
OF all the properties, aid the various Of
| fficialS of the several lines are reporting
TO them. The courts. in determining
the personnel of the receivership, Sc
lected Mr.. Clark and Mr.. Mink on &C
count of their we'll known familiarity
with the property, their peculiar fitness
for, the position and the confidence of
the stockholders and creditors as well as
! the general railway public in them as
managing officials.
The court further insisted that the
important interest of the government in
the property should be represented in
The receivership, i'll order TO fully pro-
tect the government securities, and to
see that the management was of such a
character as to preserve the govern
ment lien. 1t selected therefore as third
receiver Mr.. Ellery Anderson, whom
Mr.. Cleveland recently appointed as
| government director, and who became
| thoroughly familiar with the properties
during his service as a member of the
Pacific railroads investigating commit
| lee appointed Oy MI. Cleveland
| SOME YEARS SINCE.
Most OF the preliminary operations
have been conducted in the East, and
| the endeavor las been to complete the
| proceedings in such manner that the
| first public information would come
after the receivers were in possession.
| ms was done to protect The stocks and
securities OF the company against any
| depreciation which might have followed
! the announcement that papers were be
ing prepared or the application would
be made. AT the headquarters OF
the road the blow has been ex-
pected ever since the meeting of the
! board of directors on the 10th
inst. The application was made by
Samuel Carr, Oliver Ames and Comp
troiler Mink. The bonds of the receiy-
ers were placed at $4,000 each. In the
application it is stated that at the last
annual meeting. on April 26. the state.