The morning call., 1894-11-25
ITS BONDED DEBT
Holds Back the Union
Pacific
PLAN OF REORGANIZATION,
Including the REIMBURSEMENT OF
the Government Claim.
RECEIVER MINK HAS AN IDEA.
if Only Congress Will Take What Is
Offered the Company Can
Handle the Rest.

OMAHA, Nov. 24.-Receivers Mink and
Anderson and number of Union Pacific
officials and stenogra piers returned to-day
from n inspection OF the lines. Tonight
the receivers left for New York, where
mex. week they will meet the other re-
ceivers OF the property and decide finally
on reorganization plan. MIR. Mink, dis
russing the tour of the system, said !:
From my observation l should say that
the business situation has frightened up
considerably west of Denver but east
through Kansas and Nebraska I still find
depression, due largely to ths failure of
crops. Had the States mentioned been
favored with an abundance of grain and
corn this am confident would have been
one of the best years in the history of the
Union Pacific"
Asked if he thought the numerous fore
closure suits would be pushed to their
Legitimate end, MIR. Mink said: II do not
believe it is the intention of the complain
ants and plaintiffs in these cases to force
any one to the wall The general feeling
seems 10 be that the suits were brought to
protect certain interests and to permit the
control of the revenues under receivers
rather than allow the revenues to go into
channels other than those represented by
the mortgage bondholders. With receivers
favorable to the interests seeking protec-
ton / believe that the foreclosure cases
will not operate as bar to legitimate
handling of the properties"
Upon the question of Teorganiza ton
Mr.. Mink expressed himself as favorable
TO such scheme as that outlined by the
Government receivers. 81 do not under
stand that The Government receivers are
,ledged TO the several aIlotments made,
but they were advanced only 10 develop
the reorganization feature Of their report
and show by actual figures how such a
scheme could be brought about.
"The allotment OF the government Sc
curity is very generous one to my opinion,
being something Ike $70,000,000, or dollar
for dollar. This amount under the plan
proposed would become part of the banke :
mortgage proposed to be placed on the en-
tire property and the Government would
become a sbareh older of he nrst mortgage
instead of holding its debt as a lien or sec
ond mortgage AS under existing conditions.
With the Government debt settled and out
of the way [ have no doubt that the other
Interests could harmonic quite readily.
Or course there would be some heart
burnings probably If in the allotment of
certain funds the scale was not properly
proportional, but even these could
be handled without much difficulty.
There are certain gilt-edge secu-
rites like the sinking funds, the
Omaha bridge bonds and Others
which would have to be carefully consid-
cred, but l anticipate that verybody cou ID
agree as to their position in the blanket
mortgage. Ii there was only some one who
could speak authoritatively for the Govern
ment l believe our pathway would be clear
toward reorganization. The reorgan ia
ton committee must tai Ike into considera-
ton the Government: debt first, and after
O conclusion has been reached as to what
would be a fair valuation of the second
mortgage which it has in certain branches
of the Uuon Pacific, then the first trouble
over these properties would be ended aud
the other security-holders can meet on a.
common ground for the settlement of their
interest. Whether the reorganization COM
mittee will present plan to Congress,
shortly to convene, l am OF informed, but
we can only hope that the scheme pro-
posed by Mr.. Anderson and his associates
will meet with consideration. Tire fact
that they went so far as to put in the allot-
ment,, including the Oregon Railway and
Navigation Company, show how sincerely
they regard united property"