The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1893-10-14
IN THE HANDS OF RECEIVERS.
Aftsr . Gallant Struggle the Union Pa
ciGc IL Forced Ia Co Under.

After . Gallant Struggle the Union Pa
cidc L. Forced Ia Gu Under.
OMAHA, Oct. l3.-S. II. II. Clark has just
been appointed receiver OF the Union Pa
ciiic road. A plea In equity was filed in
the United States district court to-day.
Judge Dundy appointed S. II. II. Clark,
Ellery Anderson, New York, and u. w.
Mink, Boston, receivers for the Union Pa
c.fic railroad. The application for re-
ceiver was mnde by tho executors OF the
Frederick l.. Ames estate, Oliver Ames,
second, Samuel Carr, Edwin +. Atkins
and Peter wickoH. The announcement
Of tho applications and the appointment
of the receivers came simultaneous at
about noon.
Boston, Oct. lathe news bureau,
speaking of the Union Pacific receiver
ship, says the company has no floating
debt, but tie earnings are not sufficient at
present to meet tho interest on the COM
pany's bonds. Ii 10 estimated that Tor
nine months to Oct. I. the company must
show q loss In gross earnings compared
with 1882 OF A.6Aa,0O0 and IL is estimated
that the net decrease IL 3,63l ,3s1.
OMAHA, Oct. l8.--President Clark, dis
cussing the situation this afternoon said:
''The application for receiver was not
unexpected. as q careful student Of rai /.
road operation In the past few months
must necessarily conclude. After review
Of the startling Gross and not earnings,
which western roads have suffered, with
the possibility of default In paymen, OF In.
terest staring Us in the face, the only thing
TO he done to keep the property intact was
to file bill of complaint, praying Tor ro-
ceivers and ask the court to intervene.
The properly will be managed for tho
Aopt interests of all concerned"
Speaking for General Manager Dickin-
con, General Solicitor Thurston said !:
"The unexpected and surprising falling
OF Of business on the system, and stag
nation and depression throughout tho
transmissouri territory, convinced all
parties interested In the preserv alton and
integrity of the property, that II would DO
impossible to meet the interest and other
fixed charges soon coming due, and
thereby the system would be subject to
different actions In different Jurisdictions,
which might. and probably would result
In depreciation Of tho property"
The court, in determining the personnel
OF the receivership, selected Clark aud
Mink on account Of their well-known
familiarity with the property. their pc
cuiiar fitness for the position, and the con-
fidence of stockholders and creditors, rs
we'll as the general railway public, I'm
them as managing officials. Tho court
further insisted that tho important inter-
est OF the government in tho property
should be represented, and selected there
fore, as third receiver. +. Ellery Anderson,
whom Cleveland recently appointed gov
ernment director. Most Of the prclimi.
nary operations were conducted In tho
East and the endeavor has been TO COM
plete the proceedings in such a manner
that the first public information would
como after the receivers wero In posses
sion, In order TO protect the stock and Sc
curities OF the company against any de-
precia,ion which would follow the an.
nouncement that papers were beinR pre-.
pared or an application would be made.
In the application for receiver It ID
shown that the liabilities OF the company
arc s2iO.43i.0il: bonds aud notes out
standing are s97 .6s2, ,735, OF which $s5, 492,- =
035 are afioat. Tho bonded Indebtedness
to the government is not included in this.
There Is coming duo large balance OF in
terest on subsidy bonds now abou, fls, ,0Oo..
600. The company is also indebted for
labor and material from Oct. I, the amount
probably reaching million and n half. The
gross earnings of the system for tho bust
meas year ending December. 81. 1892, were
~. .57s, ,2i9; expenses, st4 500. .54s. leaving a
surplus Of 81 .0ss, ,7bS. For the eight months
ending August 81, 1898, there has been q
falling of Of gross earnings, compared
with the same eight months OF last year
Of s.l5i. 900. and falling of In net rev
enue of S2,5ss.0o0. There has been q
further falling of in gross revenue for the
month of September Of million and q
half. compared with the same month last