New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-10-14
UNION PACIFIC'S COLLAPSE
THE ROAD PLACED N TIE HANDS OF RE
CEIVERS.

ACTION TAKEN on THE PETITION OF
THE AMEs AND DILLON ESTATES
Boston. Oct. 13.-On petition Of Oliver
! w Mink, controller Of the Union Pacific Rail
way the affairs OF that road were this after
noon. at Omaha, put into the hands OF re-
ccivcrs The reasons for the action were de-
creascc earnings and probable inability Of the
road TO meet the interest charges falling due
in November December and the coming Janu-
airy. AS it unfortunately happens. the heaviest
charges Of the road have To be met at time
when the receipts. especially in the present
| depression. are the lightest. The Court granted
the petition. and appointed President 5. II. H.
Clark. Oliver w Mink and r. Ellery Ander-
son receivers
The action was originated by the sydney Dlor
and +. l.. Ames estates and by Edwin Atkins.
vice-president Of the road. personally. IL is
designed as an assignment pure and simple for
the protection Of all the creditors of the COM
panN. The company mas no Indebtedness at the
present time but heavy interest charges soon
fall due. The Executive Committee was con-
vinced that the earnings of the roaG would not
be sufficient TO meet these charges, hence the
present action. The interests Of all the creditors
will be protected alike. The length of the re-
ccivership is problematical. The system is
the earnings Nj Atkins says:
THE gross earnings OF the Union Pacific sys
tenn for the first nine months Of the current
year. September being estimated. in compari-
son with the same period Of 1892 show decrcase
in gross earnings Of si6iS,OOO. and an cst-
mated net decrease of 1851 coo. Since the
falling of In the gross assumed such larg"
proportions. the directors of the company and
officers on the line of the road have made strenu
Gus efforts TO reduce. and have largely
duced, the operating expenses but the decrease
in gross carnng5 has been large that the
task Of offsetting it By any reductions in cx-
penses has of late seemed To- be hopeless. The
very large amounts invested il. the properties.
the mutifarious interests involved and. above
all the necessity for the continued operation
cf the various lines in the system as IA unit
have seemed To impose upon the directors the
duty Of acquiescing in the proceedings insti-
tutcd 10y and in behalf 81 some Of the more
prominent holders of So .uritics i'm asking for
judicial inter, cntion In this connection. at
tention is called To- the fact that on the first
day Of August. 1894 the so-calcd threo-ycar
trust notes mature There are now outs,and- |
ing Of ,ncs- notes slli20oO0 Within short
time thereafter tl;c frs. instalment of the debt
to ,nc Unitol States becomes payable No
d'bts can well lc made in the face Of the pres
cnt earnings of the company. Tho revenues
derived from currcn, operations are not sufii
cent to meet currently accruing intores: and .
sinking fund charges. notwithstanding the fact
that the pr-sent is under ordinary circuin-
stances. the most prosperous season OF the
year"
THE Journal" will say to-morrov morning:
If such step were necessary, and tho logic OF
CIRCUMSTANCES pointed this way. security holders .
,oHII h~t hiid t'ir property IN NOR" friendly
hands There T. on- way. too. IN which th~ step
ma! pTo'' '"cl''1i' a''antagc"us 10 The owners
~ thf ioan tliai - ~ hast"nins the adjustment
Of It's debt 20 thc Government This hesus TO fan
due next year II has been manifest ai. along that
come extension would has" 10 hc maie but con l
frrss has n'zl.ctch 10 80 ANYTHING. Cntl SOM
have no Investment valu"
one of the directors "f tho Union Pacific Mr.
Lane. said to-day. The notice of the appoint
nent II receivers for the Union Pacific was
lo' aitogcthcr Il surprise because it was well
snow n that the large decroas" In the company =
'arnings might make the appointment of re-
'civers necessary. In order TO protect the bond
md shareholders by holding the system to-
'cen the prcsiden' Of tho company. and is very
auiliar with its operations and physical
Characteristic. Mr. Mink. The second of
# the company. and has long been in it, em-
hoy. and is familiar with iis history and
iianccs. The third receiver. t.. Ellery Andcr-
Il
New-boik lawyer The company has I'm the
ast never dcfauitcd on It's interest II has
ot dcfaulted now. Th" business depression
which has extended over the whole country
as decreased the earnings OF the Union Pacific
. an alarming extent. II was evident the
ompany would have difficulty Ia meeting IT'S in
crest payments during tie coming winter par
cularly as IN" summer months are usually the
lost profitable for railways. and they must dur
* these months get together the funds or "A part |
them. with which 10 carry them through |
he winter. Such being the case. the receivers
ere asked for by security holders of the com Z
any in order To protect their interests
I'm !s93 the company earned 81 900 OnO oyor ,
nj above al' Interest charges Of every dcscrip-
ion. including dividends on the stock Of the {
rcgon Railway and Navigation COMPANY
When business revives The company should be.
be To do as well again. The cumpanv's So.
uritics have been selling on u rcccivershjp
asis for some tim" The appointment nf re- :
rivcrs should not cause lower prices for the !
pnds. as they worth intrinsically more
han they are selling at now"