The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1893-12-09
D. P. REORGANIZATION PLAN,
Scheme Outlined by the Boston
News Bureau.
q stockholders to Surrender a Majority
Control Of the Property to the Gov.
eminent, Which Shall Take Up
the Roads Bonds.

BosToN, Mass, Dec. 6.-The Boston
Jews bureau outlines the following
plan for n reorganization of the Union
Pacific and m adjustment of its debt
10 the government:
President Clark of the Union Pacific,
will be in New York this week to CON
fer with the reorganization committee.
Mr.. Clark will be able to give the re.
organization committee as ex-
plicit information regarding
the property physically as can
Mr.. Monk regarding the corporation
financially. The best basis for railroad
reorganization is hoped for the future
and the best basis for such is improved
earnings. With the present earningsa
matter of history, and forming a basis
for future comparison, they can
readily figure upon Union Pa
cific values and formulate those
values into n reorganization plan, but
the worst feature of the present with
which the reorganization committee
will have to contend is the poor state
of business on the Union Pacific, q de-
crease in earnings which must be shown
for some time from month to month.
The second most difficult problem
which the committee will have to facc
is involved in the fact that, with the
exception of five minor issues amount
ing in the aggregate to less than So, 0OO,-
900, all the sixty issues OF the Union
Pacific bonds IRE pretty we'll Sc
cured by tangible property that
j. us valuable to other railroad
systems as to the Union Pacific and
some OF which might be more valuable
to railroads having terminals at Chi
cago than to the Union Pacific, which
gets but u shorter haul to Omaha. The
Union Pacific has 1922, 00O, 900 of pri-
mary and we'll secured bonds.
1t owes the government S55, 900, 900,
which is not very we'll secured.
except by reason of the fact
that the government, unlike other cred
itors, has the credit and the power that
can take possession Of the company and
work out it's debts. There are also
R55, 900, 900 Of secondary issues and S5,-
900, 900 of questionable bond issues,
which can be treated with upon some
basis approaching u :rue valuation.
We submit, therefore, that it an
attempt is made to rearrange the $685.
600, 600 of Union Pacific indebtedness
and give full payment to the govern,
ment; while earnings are decreasing, it
can be done best for all interests, the
creditors, the government and the pub
lie generally, upon some such compre-
hensive plan as the following:
!. The Union Pacific stockholders to
surrender as Mt present II majority con,
troll of the property to the government,
which cal be represented by seven di,
~rectors out of twelve, one director tc
be appointed each year. or to hold q
life position subject to removal for
cause, to have a liberal salary and nc
other occupation.
9. The government to issue $500.
600, 900 3 per cent bonds at par, take ur
all Union Pacific bonds at the average
market valuation OF the three years
ending January /, 1894, pay the gov
eminent debt, which the United
States treasury will soon be called
upon to pay in full, and
leave from $50, 900, 900 to 500, 900, 900 G.
these bonds i'll the treasury of the
Union Pacific, onc-half of which could
be used for the raising of the property
to u proper standard for u government
road and one-half remain in the treas
ury for future development.
3. Make these bonds perpetual at
per cent and permit them to be used q
par as a basis for national bank circu
lation.
This plan would enable the United
States to treat its present outstanding
government bonds and their redemp
ton at maturity without considering
the question of the abolition of tn.
present national banking system ant
tne withdl avail of 5000, 900, 900 of banl
currency.
With a system reaching from Oregon
to tho gulf and %transacting business
with almost every other railroad in tht
United States the government would b,
in a position to give the people and the
railways intelligent Transportation
legislation. The government has go
to take up the problem of it's relation,
with the Union Pacific for il
has virtual control of that property to
day through n majority of the receiver
and will have maturing the next few
years $50. 200, 900 of Pacific railroad OBJ
legations, the direct debt of the gov
eminent issued on account of the Paci
fc railways. 1t is not frs
a transportation problem, it is primar
lily q United States treasur,
problem, and it is not whether the gov
eminent could foreclose and save itsel
from loss by the sale of it's interests
for if the Union Pacific system is disin
tegrated it is figured that the govern
ment's second mortgage on u part O
the main line Of the Union Pacific i
not worth 90 cents on the dollar.