The herald., 1893-10-14
ANOTHER GOOD OBJECT LESSON,
The Union Pacific Goes Into a
Receiyership.
Inability to Pay Interest on Bonds
the Cause.
8. III. n. CLARK, E. Eiicry Anderson and
o. W. Mink In Charge OF tho
Property-The Action Not
Unexpected.
By the Associated press.

By the Associated Press
OMAHA, Oct. 13.-On plea of equity
| filed in the United States district court
today, Judge Dundy appointed S. H. III.
Clark, E. Ellery Anderson of New York,
and s. W. Mink OF Boston, receivers for
the Union Pacific railroad. The sppIi-
cation for receivers was made by the
executors of Frederick l.. Ames' estate,
Oliver Ames, Samuel Carr, Edwin f.
Atkins and Peter Wickof. The an
nouncement of the application and the
appointment of receivers came stimuli
taneously about noon.
President Clark, discussing the situa-
tiOD this afternoon, eaid:
''The application for a receivership
was not unexpected. as q careful student
OF railroad operations in the past few
months must necessarily conclude, after
review of the startling decrease in
gross and net earnings which the west
ern roads have suffered. With the pos
sibility 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 aek-
AA& AOA AOGCiNOlcs 0aO hoh th0 COQtt w
intervene. The property will be man.
eyed for the best interests of all con-
cerned."
Speaking for General Manager Dick
inson, General Solicitor Thurston said
the unexpected and surprising falling
off OF business on the system and the
stagnation and depression throughout
the trans-Missouri territory, convinced
all parties interested in the preservation
and integrity OF the property that it
would be impossible to meet the inter-
est 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 reeult in the 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 the
confidence of the stockholders and cred
itors, as well as the general railway pub
lie in them as managing officials. The
court further insisted that the important
interest OF the government in the prop
erty should be represented, and selected
therefore as the 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 pro-
ceediDgs in such manner that the irst
public information came after the re-
ceivers were in possession. This was to
protect the stock and the securities OF
the company against any depreciation
which would have followed the an
nouncement that papers were being pre-
pared or that application would be
made. 4
In the application for receivers it is
shown that the liabilities oil the com
pany are s240, ,431 ,O4l. sThe bonds and
notes outstanding are s97,6S2. T35. oil |
which $50, ,035 are oaaiiost, The (
bonded indebtedness tcsthe gevernment !
ie net incuded in this. There is coming
due large balance of interest ON sub /
eidy bonds, now about $lS 900, 900. The !
company was also indebted for labor /
and material October lat to the amount /
Of 100000. 6g ss
The gross earnings OF the system for .
the year ended December 81, 1892, were
s46 SIS, ,294 expenses, Si4, 503, ,538, leav-
ing a surplus Of 2,069, 756. For the I
eight months ended August 81, 1895,
there has been a falling off of gross
esrninge, compared with the same eight
of last year, OF So, l56 900, and /
a falling off in net revenue OF 81, ,5SS 900. 4
There has bsen further falling off in
gross revenue for the month OF Sep
tember of 81 500, 900 compared with the
same month last year.
New York, Oct. l3.--An appointment
OF Union Pacific receivers was also made /
in this city this afternoon. on an auxil-
iary motion in the United States court,
before Judge Benedict, The bill of com
plaint is the same AZ that filed in Omahs.
BosToN, Oct. 12.-The News Bureau,
speaking of the Union Pacific receiver
ship, says the company has no. floating
debt, but the earnings are not sufficient
se present to meet interest ON the COM
oany's bonds. 1t ia estimated that for
he nine months to October 1st the
company must show a loss in gross earn
ngs, compared with 1892, of $4 ,643, 600.
md an estimated net decrease OF
{, ,631. .377.y