The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1894-11-16
A. TO THE UNION PACIFIC.
Discussing the Plan For Rserganislns
the lOmpauy.

Dlseussing the Plan For Rsergsnislns
the Company.
OMAHA, Nov. l5.-An interesting feature
Union Pacific developed to-day In connsc.
ton with interviews with the local rail.
road mon had BY Frederick Coudsrt and
John w. Doane. government receivers Of
that property, who passed through Hast
night sn route East after examining the
system. Coudert expressed himself 90
bsine favorably impressed with the Union
HAetno prapertsss and hs thought the dif.
ssesness existing between the Union Pa
olnc. the Denver 4 Gulf and the Union
Pacific company would be adjusted to the
advantage OF both companies.
Regarding the plan Of reorganization Of
the Union Pacific company, ~ proposed
By the govsrnmsnt directors, be stated he
was heartily In sympathy with 1t and no
looked to congress to do something At
this session that would start tho ball roll.
ing to . final settlement Of the vexsd
problems. Tho scheme Of tho directors,
a. reflected In this report, 10 to substitute
. per cent. blanket mortgage for the
present per cent. mortgage soon TO be-
como due. In othcs words, to pay the
government debt b. mortgage for t70,-
100000. dated July I, 1895, to subject the
entire railroad OF railroads to Q single
mortgage, under which the issue of per
cent. l00-year honda to an amount such
that tho accruing interest will not exceed
the minimum earning power, and apply
the moneys and securities In sinking
fund for the part payment Of an extsu.
sion Of the bonds which have priority over
the lien Of the government. and 20 ON
until the stock Of the company 10 all pro-
vidsd for under the new conditions.
''Of course" said Coudert, ''tho govern.
msnt directors are well aware that no
plan Of reorganization con bc carried ont
without tho approval and cooperation OF
Q largo majority Of tho holders of all
classes Of securities. There may bs somo
difficulty In substituting tho sinking fund
Sc for per cont. bonds ut 160. 90 pro-
vided for In the proposed application of
securities, and in changing tho collateral
trust &c to SIS at $50, but with these OK.
ceptions, ! cannot SEQ why tho plan sub
mitted Is not o good one. Il is tho judg-
ment Of tho directors that no plan Of 70.
organization can be carried into effect
without o complete foreclosure Of the
property Of the company to be rcorean-
tsed."
Coudert felt hopeful that such q scheme
as proposed by the directors might be
favorably acted upon by congress. as the
reorRaniIing government had better be sat.
isfied with half loaf than getting nothing
In tho event OF the first mortgage bond.
holders beginning foreclosures upon de-
fault Of the payment Of interest.
Speaking of tho second mortgage held
by the company, he said: "Its lien is I'M.
perfect and incomplete. II Is for this
reason impossible to marshal tho securi.
ties intended to be issued SO rs to give tho
government as favorable settlement as
must be offered to those holding the So
curity Of the higher class. The real ques-
tion to be considered Is whether the propo-
sition to the government is better propo-
sition and will secure n better return than
II could obtain by resorting TO a fore.
closu 70 Of the licn." Messrs. Mink and
Anderson of the receivers. MIR. Boissevain
and his party. and General Manager
Dickinson are on the navigation com.
pany's lines to-day. The proposition OF
Coudert was generally discussed by the
receivers.