The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1894-04-27

adj ustment OF the claims of the United
States against that company. The main
features CT legislation proposed in the plan
submitted are as follows:
The existing corporation Is to be pre-
served. That ought to be done without
resort TO hs process Of foreclosing its liens;
If il should turn out otherwise. however.
the bill provides for foreclosure By sale or
otherwise, and il by sale authorizes a re-
organization plan conforming To the pro-
visions of the act aud most favorable TO
the United States.
2 The existing first mortgage bonds
Tor $SS. SIS, 5l2, less amount Of bonds in
sinking fund. TO be cancelled: s. ,6l9 0O0 sre
10 be renewed and extended at a lower
Fate OF interest. quot exceeding per cent?
with a provision for q sinking fund esti-
mated at sufficient TO extinguish the debt
al the maturity Of the bonds.
3. Tae debt of the United States to the
amount of 81, 000. 0Oo is TO be paid in 2 Der
cent 100 year bonds, secured By second
mortgage on all the present., aud In future
to be acquired, proptery OF the company,
aud further secured by provision for "a
sinking fund of such amount that the an
nuai payment on account OF II and inter
est in these bonds shall always equal the
sum of ST. G5O, 900.
From this arrangement the United
States receives great advantage. according
10 the attorney general Its debt becomes
secured by all the property OF the company
over 5000 miles OF road, whereas the only
assured lien OF the United States is now
confined TO I ,432 miles of rosd. The United
States debt Is further secured by the
annual payment toa sinking fluid OF about
$50, OO0 which will grow larger s. bouds
or this issue are redeemed.
In the interest of the reorganiZa' ion
plan the United States not onsy should
contribute its share towards the reduction
of fixed charges, but mny be expected To
be liberal. 1t did not subsidizs tao Union
but on political grounds. aud IL
satisfied with the security for the
principal sum. aud assured OF the ability
of the company TO perform Its charter
duties, 1t may he content with a moderate
income.
4. The bill authorizes and provides to be
secured by third mortgage of tbe entire
property Called the general mortgage).
aud to be Issued for the purposes as fol-
lows:
i. These are to be used Ia funding and
refundinR, by exchange or otherwise, out
standing obligations. THIS funding aud
refunding process is expected and required
TO result IN u great reduction Of fixed
charges.
2 1t would be the heigth of folly
to reorgaaize the company leaving 1t with
out resources for development and i'm
provement A railroad Is thing OF con-
81 ant growth. If not in mileage ia the con-
dition OF Its plant, aud constantly requires
fresh capital for the new construction.
the general mortgage bonds
may be used for improvements with the
OF two-thirds Of the directors.
3. The power of using general mortgage
bonds and stock for rebuilding Is limited
10 the annual charges. Sinking fund re
quirements of bonds had by the United
States and guaranteed rentals Of the com
pany after bonds are issued shall not exceed
s.. 500. 900, this Limitation by cutting down
the fixed charges by from "a, 900, 900 to S.
O00, 900, seems to make 10 reasonably Ger
tain that after the reorganization the CONF
pany eau hardly fail TO operate its road
successfully and to meet all legal require
meuts upon is revenues
9. The existing sinking fund OF the
United States IL utilized by the caucells-
ton of such part as consists of existing
first mortgage bonds aud by placing the
balance OF IL with the secretary OF the
treasury AS additional security for the new
bonds accepted by the United States
Z, A plan OF reorganization has not yet
been formulated Probably but little pro-
zress eau be made with such a plan until
the requirements Of the government are
clearly sscertained. 1t has been claimed
the government should content itself with
what IL will accept in payment
Of its debt aud leave all the other terms Of
4 reorganization to be settled by the di-
rectors and stock holders interested. IL
would he grossly improvident for the
United States TO assent TO plan which
was not known in advance and whicii
was not thus ascertained To he such that
lnder IL the Reorganization COM
nittee may be expected TO per-
operate its road aud fulfill
Ill its private aud public obligations
A plan of that character would simply
bring The government within . short time
lace TO face with Ibe same conditions tnat !
low Confront IL. The government ought
lot TO consent 10 a scheme which It does
rot know To be framed on principles OF
ustice to sill parties. While permitting !
he private interests involved siI po-sibls /
attitude, the proposed bill puts limitations !
which are simply what sound policy and ]
Justice requires SO the entire scbeue Of I
must lie sstisfaS tory To and 1
eceiys tie cooperation cf tie ls1 officers /
4 the government, aud the bill also pro l
Tldes In terms that the plan OF reorgsnizs
ion shall confer the same rights, privileges /
Ind benefits and 1Inp pose the same cODdl- /
ions upon ali members Of each Glass with 4
,ut Discrimination or preference.
S. IL being highly Improbable that dif- |
ereSces should Dot Srlse respecting the !
fghfs OF parties under the plan OF reorRsn-
zatioa. the bill provides a forum by bica
hey shall be adyusted. The forum sog-
ested Is the court of appeals Ct sbe Dis
rict Of Colunb ls. L. may he suggested
hst unit. q plan OF Teorx xniz.tson. 10 be-
AFT Of the private Interests. congress
nould remain passive. Iatii the require
seats Of the United State are Autborit stiy-
? defined. however. tie private parties
re without the ground work upon which
ny reorgzBizstsoG piaa muss rect Tie
~ will fnraisb ;h-, ground, all put
reditcrs and stockholders IL Possession
Z the exact conditions. theT have 20 deaf
-ita. and enable them 10 agree upon =
Ian Of reor2 .oIz4iios- How largely the
siied St~tes Ia its creditor capacity 10
.ters-tet ~ the success of saca . plan,
az. perhaps, been already sufficiently az
snxcd Bat g may net Improperly ce
1dsd that mucs more - Involved tssn
e exsct per cent 20 be collected On the
ublic debts. CoDgre.smen chartered ths
nsoa Psc.f &c ksilrag company 20 pro-
,ote great public sccs AMI 10 49,
are great psbi3e Advantages. grsst-
e ls1cs AID subsidies Ca tie ,
press condition TIA, IL shcosd transmit
!. dispsfcbes. ugsils, troSrs zs9 naass3osss ,
war. and supplies sEd 5G5slc stores for
e eoyerune1f- IBles- r4s object. have ,
.xs~d 70 te Of value, or ts1: . corDsrx:tos ,
xe he Cnsoa Psesse RAILWAY COMPANY .
rot pce1<1 fer tkx.r socoza pfls Anssc; ,
,e reb.bsiiizt3os Of tks. eOnp.ry or rSe ,
fsssfurtoc Of another With Ike srzn-t
Uses AID sgttseT 20 iiks dEf.~s IL sr,sp~sx
veiy demanded Ga tbs broad Srczsd a / I
.~ general welfare ,
IL - q ~ p,Dstaoee 20 the oabiic. ADD Of ,
smss~s nssD<s. % the p8elsc q ts~
xses snd tefFsScssrs trzsers~1 ty The road
a. tie exsst-as recelvsrsEty shoala
sc place 70 tee rsacsEssDesf % /. sol +,
Is add stfooS ecrpor.tsoa % sooe ,
:. tic rod az con- o.fsrsr-lv fs~rs r,r,,,.. :
y. s1nspty . uaa-s os s1-e;s % q. k~ot
tzct. Il scssiosr, ia u.sina.s sit.ssiAs.- .
A ma n cxndIao<~ La al 4