New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-10-15
FEELING ON UNION PACIFIC
GENERAL SATISFACTION EXPRESSED ON
THE APPOINTMENT OF RECEIVERS.
THE PLAN OF REORGANIZATION NOT YET An
THAT TIE INTEGRITY OF THE sYs-

NOUNCED-E ELLERY ANDERSON BELIEVES
THAT THE INTEGRITY OF THE sYs-
TEN WILL BE PRESERVED
The first plunge having been made by the man.
agement OF the Union Pacific Railway into the cold
waters of a receivershp. there Is disposition 10
feel the comfort OF warm reaction. The stock
market reflected this feeling to the extent OF
slight rally I'm the price OF Union Pacific Stock
while there were only moderate transactions AZ the
Stock Exchange. 1t is entirely too early yet 70 at
tempt foreshadow. in the slightest degree the
possible lines upon which the reorganization Will
be conducted for the situation is not only compll-
Gated by the internal arrangements Of the sys-
tcn but is further involved by the relations OF the
company TO the Government. But the very fact
that the process may be long and dificult increases
the qualification Of those Interested In the property
that the company has been placed under the pro-
lection OF the courts and is saved from an imme-
date controversy, possibly destructive Of the In
tesrty of the system. Wall Street naturally talked
of the prospects of assessment upon the stock,
but the topic decidedly premature and wholly
beyond the reach of intelligent prediction.
In talking with q Tribune reporter f. Ellery An
derson one OF the receivers reflected the general
ideas prevailing as TO the probable character
istics of any reorganization scheme. Mr.. Anderson
did not know OF his appointment until yesterday.
and he has far been able to do little more than
to ask for reports and statements that Will furnish
a clear and detailed exhibit of the exact condition
OF the company's finances. as now existing MI.
Anderson said that he had written to his colleagues
the other Government directors of the company in-
forming them Of his appointment, which he inter-
preted as intended specifically to secure to the
Government a representation in the receivership
GOVERNMENT INTERESTS TO BE CARED FOR.
MY immediate duties" he said. will be to see
that in all contracts, traffic arrangements, ana
statements and treatment Of earnings nothing shall
BE- done that in any way shall be to the detriment
OF the Government II would be premature to at
tempt discuss the many questions which VIII
arise from time to time. may say however, that
the proceedings were evidently taken under full
stress of necessity. and that ! consider the re-
ceiyership the best action possible for the benefit
Of all concerned except possibly a few bondholders
who may have extraordinary security. 1t pre-
vented an indiscrimate scrimmage on the principle
Of sauve qui peut' which would have resulted In q
ACKNOWLEDGMENT and breaking up OF the system
Mr. Anderson said that he believed the reorgani-
zation would be conducted with view to har-
monous presentation of the integrity OF the Union
Paclfc's system, a whole 1t was possible that
the different branches and divisions would be re-
organized separately. and possibly the line from
Omaha to Ogden would be turned over to satisfy
the Governments claim. But he doubted that such
a would be followed and thought that, In the
light Of existing conditions there would be conces-
sions on all sides that would preserve the system In
its entirety. He said that the Government direc-
tors had. In every report made In 1885, and since
that time recommended a long extension Of the
debt due to the Government at a low rate OF inter-
est say 2 per cent The Union Pacific was probably
stronger in 1881 than II was now, and ne believed
in settlement st based upon necessary Ts conees
PROBABLE STATUS OF COLLATERAL TRUST
| NOTES
With regard to the status OF the collateral trust
per cent notes Mr. Anderson said that while tech
nically the holders of the notes were amply Sc
| cured-were In a far better position than the Gov
ernmc inland could. IL the notes were not paid on
next August proceed to sell the collateral they held.
the equity of the company In these securities was
sufficient to Justify the court, II necessary. to pre-
assets But Mr. Anderson said that he believed
that there would be satisfactory arranyemenS
with these creditors when the final propositions OK
reorganization were arranged.
GEORGE j. GOULDS OPINION
George j. Gould was seen just before ne left
his Office to attend the funeral of T. c. Eastman.
He said that the placing of the Union Pacific Road
| in the hands OF receivers good thing for the
stockholders as would keep the property together
by preventing legal proceedings for tearing II apart
A general scramble Of every one each looking ous
for his own interests would necessarily have bad
results the stockholders. The stock. ne
added. rs in much stronger position today man
Gould said that the receivershp was necessity,
compelled by the greatly decreased receipts: He
Dillon and Vice President Atkins In The Tribune
Yesterday and said he could add nothing to them.
Mr. Gould declined to discuss the future OF the
| company He said that any plan for placing the
road upon a sound financial basis and protecting
the interests OF the stockholders would have more
chance OF success with the road under me protec.
many embarrassm ents that might otherwise attend
an attempt to carry out such plan.