The morning call., 1893-10-14
DOWN AT LAST.
The Fall of the Union
Pacific.
IN RECEIVERS HANDS.
No Alternative, Course
Possible.
WILL SAVE THE PROPERTY,
And There Will Be No Change
in the Roads Policy.
MR.. ANDERSON FOR UNCLE SAM
1t Had Long Been Foreseen That the
Fixed Charges Could Not
Possibly Be Met.

most people, although the rumors of a
receivership had been appearing in the
stock reports in the last two days, and the
depression of stocks accompanying the re-
ports on Wall street had prepared few
people for the outcome. 1t was an action
taken to forestall any suits that might
arise from the inability OF the road under
the depressed condition of business to
meet obIiga tions about to become due.
The court appointed S. II. II. Clark, the
PRESIDENT; o. Nj. Mink, the controller, and
E. Ellery Anderson, Government di-
rector who was recently appointed by
President Cleveland. as the receivers. Mr..
Anderson was one of the Pacific Roads
Investigating Committee. and is supposed
TO be close TO the national administration.
These appointments continue the pres
ent theory of the management Of the
road. and the receivers have, after taking
possession, retained all the officers, agents
and employees for the present.
The receive ship application and order
were similar to those made recently in the
case of the Northern Pacific road, and are
in their nature friendly. The principal
aim of the applicant was to preserve the
road as one system and thus maintain its
greatest value, instead of allowing il TO be
disintegrated by suits here and there. and
it is believed that the course follow has
been best for the stockholders and credi-
tors, including the United States, which is
represented in the new management by
Mr.. Anderson.
A receiyership at this time Is not such a
black eye to the people along the road and
the employees as it would be in ordinary
years. The expenses and the payrolls
have been so far reduced that, except pos
sibly for canceling the wage schedules. it
is Ith0ught that the usual economy prac-
ticed by receivers can go no further than
has been done by the CONF any's manage
ment.
The order was made by Judge Dundy of
the Federal court in answer to an appli-
cation filed by the administrators of the
estate OF F. l.. .Ames and by other inde-
pendent stockholders. The petition cites
the great losses suffered by the road. show
ing during the past eight months decrease
iD gross revenues of over SO, 145.000 as CON-
pared with the same period last year. On
October l last there was due for labor and
material unpaid S1,500.0Oo.
This condition of affairs precluded any
settlement on an ordinary basis, and so In
order to satisfy the Government and the
other creditors the receivership was ar
ranged.
President Clark. in discussing the situa-
ti0n this afternoon, said: "rhe applica-
ton for receivers was not unexpected, as
any careful student of railroad operation
in the past few months must necessarily
conclude after a review of the startling de-
crease in gross and net earnings which the
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 in
tact was to file u bill of complaint praying
for receivers and ask the court to inter-
yene. The property will be managed for
the best interests of all concerned"
Speaking for General Manager Dickin-
son. General Solicitor Thursday said:
"'rhe unexpected and surprising falling off
in business on tire system and the stagna-
tion and depression throughout the trans
Missouri territory convinced all parties
interested in the preservation of the in
tegrity of the property that it would be
impossible to meet tha interest and other
fixed charges soon coming due. and that
thereby the system would be subjected to
different actions in different Jurisdictions.
which might and probably would result in
q depreciation of the property. The
court, determining the personnel of the
receivership. selected Clark and Mink on
account of their well-known familiarity
with the property, their peculiar fitness
for the position. and of the confidence OF
the stockholders and creditors as well as
the general railway public in them rs
managing officials. The court further in
sisted that the important interest of the
Govern ment in tile property should be
represented. and selected, therefore, as a
third receiver. E. Ellery Anderson, whom
Cleveland recently appointed Government
director.
Most of the preliminary operations
were conducted in the East, and the en-
deavor has been TO complete the proceed
ings in such manner that the first public
Information should come after the re-
ceivers were in possession. This would
protect the stock and securities of the COM
pany against any depreciation which
might have followed an announcement
that papers were being prepared or that
an application would be made
In the application for receivers it is
shown that the liabilities of the company
are S240, .041. The bonds and notes out
standing are So. 6S2. 735. of which SS5, 1922
035 are afloat. The bonded indebtedness
to Government is not included in this.
There is coming due large balance of in
teres: on subsidy honds, now about SIS,-
100000. and the company is also indebted
for labor and material to October to the
amount OF S15,000,00O The gross earnings
of the system for the business year ended
December 81. 1892. were S46,573, 24o. and
the expenses S44,503, ,53S. leaving surplus