New-York tribune., 1894-04-27
A UNION PACIFIC Bill.
Proposed GROUNDWORK FOR REoR-
CANIZATION.
, MEASURE SUBMITTED ~ i'H
or THE HOUSE by ATToRNhi-
GENERAL. OI.Nf1Y.

or THE HOUSE bf AliO'
GENERAL oLNDY.
voshirgton April 26-Attorney- General Olney
sant 70 the Speaker OF the House TO-DAY u'a''
~ q bill entitled IAN Act to Reorganize the o"lo"
Pacific Railway Company. and TO headJ"s' "'u
,.ra tho Claims OF the United States against the
Said Company. ~ -. A.,
=, s,,nnort ~ the provisions OF the BILL the Az
,orre,-C;eneral sent to the Speaker statement
In exclamation. lie narrates how, IN the IA" -
1893 the Union Pacific Railway Compa"s
,,able 70 meet It's current obligations throush
loss OF traffic and how It IL obvious ''''
tho courts cannot continue permanently IN the pns'
ness OF operating railroad and tna' u'''s' "''''
q reasonable time, they are otherwise reHeVe' 81
tho nro,er,y they must proceed TO wind up tnr
co,nnanv and 10 apply its assets to the payment Oh
d.bts in the ordinary manner. the result Vi 7"N'
a course says Mr.. Olney, would De s"0i"'ee w
= d,es,pa,ion OF the Union Pacific system-an ou'-
come most prejudlcal to the puohc "e''"'' 80
wei, as Injurious to ell creditors
In exclamation OF the legislation proposal vi
O,,o, eavs that one Of the main features Is 'he
ssrva,,on of the existing corporation the e'eo.
=, ,be reorgan,zation being simply to relieve Il y.
x,st,ng embarrassments. and to put IL III So"'''
financial and business condition. lhat ous"' " y
no,, s,vs the Attorney General. without resort
~, the United States to the harsh. uncertain anu
-,,e,,c.orv process OF fOreclosing its liens
VII ,a,,,, ors, mortgage bonds for $359s.5l2
existing
- 3D., o,roun, Of bonds In the sinking fund 10 De
,,aa ~ ssOm are 10 be renewed ana eN-
,o,dad NJ a lower rate OF interest," not eAoeeu'"'
= per cent with provision for siiA'',s .'"' -,
,,rr,t-, as sufficient to extingush the aeo' a' '"7
maturity OF the bonds. .
| The debt OF the United states aH'ou"''"7 ~
,, s7o 90 600 is 20 be paid in per cent o'lenuI, Omen IL
aoout@ 80 49, Hvnis secured by a second mortage on
ail the present and subsequently lH aUlaHTeh Nv nro-
| o." me company. and further secureu Wy Ptb
I
ann,,,l uayment on account or II anu u ~ ~ ann,
amu sa' an thes. bonds shall always eduai me suit sun
terss, o on t-ron, this arrangement the Attorney,
| General says the United states ue'''e'
@ H, authorizes and provides FOR bonds 70 os
.r''r.i hv third mortgage OF me en,re pphc}
OF the company. called I'm tne @ sed IN funding anI
| raSvnd,ng bv exchange or Otherwise ou'''"'
oegat2ns Oh w General also says II would be m
beght Of folly % reorganze the mon n laJI n ief
, Sonpany on such basis that It woun @ pe iss
,ho, Wy reso,Irce for the development ana iprOre Owe
,n"nt ~ the system. The bill; accotuihsS, ,r,so
yiI's ,isrmnnt purposes with the consent OF TWO
iS ,Srds Of the Board OF Directors ~, ro,r,ar,
zati"n While referred 70 throughout the D; nf
not yet been definitely formuated am aion M ~ aeree
that until definite plan OF reorSaiIao,o Ir,aTsst-
70 and presented on behalf OF private
which thus far have no, gvAtn A ihe Imam r pessIyt
~ n.y. or rosed pIn b II enacted into law. ne says WI
furnish the groundwork upon which any reoI
,tnr nlan must rest: will put creditors anu s'OIa 100
odeps om . in possession of the exact conditions WI
,vh,ch they have deal. ana "lIl tnus ti,o, s,,c
70 devise and agree among themselves upo,' "a
| a nlan OF reorganization aS the, rNul'Iie' 30
,arinus parties concerned may deinahu 'Ilu u,
property and resources of the company VIZ r p p
In conclusion Mr.. Olney says that tle 1' nmor n ;,
c,ac Railway will again become live properly an al,
ha neain the principal factor In the grown 2 an al
o',,,,arit, ~ the many communities specially serve
Hv oniv when the control OF the courts wno ca
- no more than preserve the existing status
sSrersed.d bv the control of owners VINO can uet
with II on the principles applicable to all puS"e'
The bil was prepared with the cooperation
| George Uoadly Of New-York. special Ohi'ed S'a''
Attorney in the Pacific Railroad cases