The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-10-14
RECEIVERS FOR
7HB UNION PACIFIC.
The Three Appointments Were
Made Yesterday.
TO PROTECT THE COMPANY.
The Earnings Not Sufficient to Meet
the Expenses.
The Matter Was Kept Quiet in Order that
the Scheme Might be Carried Out
and Avoid Depreciation OF
the Property.
TO PROTECT THE COMPANY

Omaha, Oct, ia plea of equity
was filed in the United States district
court today. Judge Dundy appointed
is. H. II. Clark, e. Ellery Anderson, of
New York, and O. w Mink of Boston,
receivers for the Union Pacific rail-
|road. The application for a receiver
was made by the executors of Frede-
rick L. Ames' estate, Oliver Ames,
Samuel Corn, Edwin F. Atkins and
Peter Wyckoff The announcement of
the applications and the appointment
of receivers came simultaneously
about noon.
President Clark, in discussing the
situation this afternoon said: 1.-THE
application for a receiver was not
unexpected, as a careful student of
railroad operations in the past few
months must necessarily conclude
After d review of the startling de-
crease in gross and net earnings,
which western roads have suffered,
with the possibility of 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
bill of complaint praying for receivers
and ask the court to intervene. The
property will be managed for the best
interests of all concerned"
Speaking for General Manager
Dickinson General Solicitor Thurston
said: 1.-THE unexpected and isurpris-
ing falling off of business on the sys-
tenn; the stagnation and depression
throughout the trans Missouri terri
tory, have convinced all parties inter
ested in the preservation and in
tegrity of the property that it would
be impossible to meet the interest and
other fixed charges soon coming due
and thereby the system would be sub
ject to different actions in different
Jurisdictions, which might, and prob
ably would, result in depression of the
property
The court in determining the personel
of the receivership selected Clark and
Mink on account of their we'll known
familiarity with the property, their pc
culiar fitness for the position and the
confidence of the stockholders and
creditors, as well as the general rail-
way public in them as managing Off
Gals. The court further insisted that
the important interest of the govern
ment in the property should be repre-
scented, and selected, therefore, as the
third receiver E. Ellery Anderson,
whom Cleveland recently appointed
government director. Most of the pre-
liminary operations were conducted
in the east, and the endeavor has been
to complete the proceedings in such
manner that the first public informa-
ton should come after the receivers
were in possession. This was to pro-
tect the stock and securities of the
company against any depreciation
which might have followed the an
nouncement that the papers are being
prepared or an applicable would be
made.
In the application for a receiver it
shows the liabilities of the company
are S240,491 OIL; bonds and notes out
standing, are $97,6S2,7 35. of which $685.
492035 are af1oat. The bonded in
debtedness to the government is not
included in this. There is coming
due large balance of interest on sub
sidy bonds, which are now about
$1S,O0O,O00 The company is also in
debted for labor and material, October
1, to the amount of 1880 900. The
gross earnings of the system for the
business year ended December 81, 1892,
were $46,573, 249; expenses, $44, sos, 54S;
leaving a surplus of $2,O69, 1856 For
the eight months ended August 81.
1898, there has been a falling off of
gross earnings compared with the
same eight months last year of SO,
600, and falling off in the net reve-
nue. of s2,5SS,00O. There has been a
further falling off in the gross revenue
for the month of September of ST.
100000, as compared with the same
month last year.