New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-10-14
UNION PACIFIC'S COLLAPSE
Continued from First Page.

,v nothing of the proceedings. Mr. stewart
,d that the receivership would not aHect 'he
elders of the collateral trust notes, as the secur
ties pledged the notes were IN trust anu
,hev were. amply sufficient to secure the loan
The auxiliary receivers for the state oi ->e"
York were appointed yesterday by Judge po"vu0'
4, the United states Circuit Court, in Brooklyn
n, course they are the same as the men appointed
., Onoaha-Sias H. II. Clark. oliver W. MINK ana
+, r,lIerv Anderson. The receivers VIII be re-
ouired to qualify in bond of $4,000 each'
APPLICATION BY EXECUTORS OF +. l.. AMEsS
WILL.
rho annlication was made as in the case OF
the Omaha proceedings. by Oliver Anies' "a
and Samuel Carr executors of the VIII oi ri'u.'O"
L. Anes Edward F. Adkins and PETER d. wy
kofr Dillon 4 Hubbard appeared Tor 'ne co''i-
claimants and Holmes & Adams Tor inc ueie'u-
ar,s The nlaintns are large holders OF various
securities of the Union Pacific and the constituent
properties of the system Inc con'p'"'
the history Of the company ana gives d i" "e
scrlpon of its bonded indebtedness e'c' Inc saich'
points were brought out in statement maze by
ex-Judge John +. Dillon. oil oouiSel loi "'e pam"
lifts which Is herewith appehaeu'
Tho grounds of necessity for the appointment oil reccN'
or. arc fully forth the bill Inc company Tor inc
wear ending December 81. 1882, hal surplus OF
:, noo 600 From January July 1893, there loss
Of net revenue, Of $500 OOc July and August loss Of
revenue OF 600. For the month oil september heie
os Ioss of NET revenue Of 900 compared with
preceding From JahuuiN ! I" August o. Hl'Io
was falling on in net revenue Of over s25cooco The
company is lnaohted labor and materials on october
To the amount Al so 900 ana IL sinking fn1 ana IN
oro.t charge. for September would he more than
81 900 600; Tor October, $4,000; for November
$50 600: for Drccnbcr $iocO,oco. and for January
100000
A LARGE DEFICIT FOR 1893 INEVITABLE
There will be deficit for the year 1893 in the sum
~ A. least ~ 600 and the company Is without money
- means II, meet these obligations this state Of affairs
bv Tho NrafiOn ~ the Her
a,o Commerce at which gradually pressing tho rail
road companies the country into insolvency but chiefly
and more immediately by the great sacnaton ana paralysis
IN business particularly ;he states where the com
,apy opcra,ions arc conducted The appointment Of ie-
.,vcr was therefore inevitable and necessary means
to protect company and the Union Pacific system Su'h
an appointment being the only TO protect the property
from numerous attachments, lcves, ACKNOWLEDGMENT ana
con qucnt impairment oil values.
The branch lines Of the company have been created
IN rder 70 develop it, business and the branches are
c-4entn to tho line. the main line to the
branches Tho policy Of tho company In I'M" resIeV'
no. b,en uniformly approved BY the Government. That
l.. nv the directors of the Pacific Railway system ana
ono,, and acts OF Congress; and the receivers are
appointed all the roads and branches IN oloe' "
preserve unity Of the system
ssFTCI,I, QUALIFICATIONS OF THE RECEIVERS.
Tho receivers named by Court probably salts
t.,orv to oil interests Mr.. Clark has been connected
with the road for years last had made such
a record that desired by all interests 10 "hara"
his refusal to serve and to act Tor al"'h'r year MI
Mini, has been for the service Of the company
an,o, xor,ons nositions as controller and viceprc>-
don't The system COMPANY concerning the thf'y
or more branch and auxiliary lines Is very conii.''
and it Is not much to say that Mr. MINK is p'oo'0''
the only official familiar with the whole sitna'on'
A REPRESENTATIVE FOR GoVERNMLNI IN
IERE>TS.
Mr. Anderson was doubtless selected BY the Court as
tho representative Of the Government interests Inc
Government as il i, known, IS large creditor ol 'ne
company. bu: II Is secured CREDITOR having zen VII
Tho property OF the comp PAW subject to hrt mortgage
which at the $1,000 mile OH the ioad except
10 IN. mountainous putions. No part OF the Government
debt cue until 1875. Inasmuch as the act Of congress-
,oor;yes IN. company render preferential Government
service and the transportation Over inc foad
,nounts IN each year large sum OF moneynoic 'hah
.noncb "a nav Interest Cove nment obligations
and the company is also required 70 pay t"chN1Ne per
cent OF fts 70 the Government 10 d" appu vi
the debt the Government event Is in no danger OF
Ultimate loss Nevertheless IL has large interests 10 ne
protected and 10 looked after and doubtless the court
appointed Anderson the Government rcpr sentative
in view his faHi .crr with the Affairs oil the 'onpan!
and of the Pacific Railroads relations to the Government
lie was appointed by Mr.. Cleveland Chairman OF the
Pacific Railroads Investigating Committee Of 1887, and
hi, commission made most Thorough eSamihduoh anu
report o companv's affairs He was selected by
Mr. Cleveland within last few months Government
Director acting such. The Court stated In
making appointment that he appointed the hrst two by
reason special knowledge and expert nee win inc
and that he considered IL IMPORTANT u"Dei INV
cond tons existing in this that the Government
he rcprc.cncd in the Enlargement, and Mr.. Anderson
was Government director, having special kno"else O.
the property considered him adapted and fitted Tor inc
place.
An influence not mentioned by Mr. Dillon. but
which railroad consider contributing
cause to the distress in Union Pacihcs earnings
was the extension Of the Great Northern Railway
system TO the Pacific Coast. The latter road was
opened the Coast this year, and 1t signahzea
its advent by liberal reductions In rates that ser-
ousy affected the earnings Of both the Union
Pacific and the Northern Pacific. Business on the
Pacific Coast was severely depressed In the imam
cial crisis Of the summer. and an additional dow
was given TO the Union Pacific by the prostra-
ton in the silver-mning industry. which followed
the closing OF the India minis to the free coinage
OF silver and the great break in the price OF the
white metal which accompanied this act OF the
British Government.
ACKNOWLEDGEMENTS HOPEFUL OF FINAL BENEFIT.
II Is safe to say that the management Of the
Union Pacific will not be prepared for some
time to offer terms Of reorganization for considera-
tor by creditors and stockholders. But security
holders are hopeful that the receivership WILL In
the end. rebound their advantage by facihtat-
Ing settlement Of the indebtedness to the Ma
tonal Government. Efforts to place the com
pany's finances on a permanently sound basis have
been handicapped by the prospect OF having 10
meet this Indebtedness within a few years as
part OF the obligations begin TO mature In ls''
Repeated attempts to secure an extension OF the
Government debt. terms fair to the company
have been defeated. although the Government
directors Of Union Pacific have frequently urged
settlement upon the attention of Congress. NO"
that an open confession OF insolvency has been
made, friends Of the company hope tha'' uhuer
the protection of the courts. the management may
be able effect settlement extension on terms
which will be within the capacity Of the COM
pany to fulfil
HISTORY OF TIE ROAD.
The original charter of the Union Pacific Rail-
way dates back &c., and the construction OF the
road was part of the work that tended to strength
en- the Union by bringing the Eastern states INTO
closer contact with the Territories and States be-