The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-04-24
6o-62 West 23d St.
UYIoX pAcrF1c REORGANIZATION.
SUGGESTIONS by Receiver Z. Eiiery Andersa-
60 the House CsumItte~.

Suggestions by Receiver Y. Eiiery Andersen.
60 the House CoumIttr-.
WASHINGTON. April 23.-Mr. r. Ellerr Andcr-
son. one OF the i've receivers OF the Union Pa
oifc Railway Company. appeared by Invitation
before the House Committee on Pacific Rail-
WAYS this morning and explained at great
length the relations Of that company to tho
Government, the status OF the Governments
claims aeainsti it. and other matters of collRt-
eral interest.
Some equitable reorganization looking to
the protection OF all Of the interests conn ected
with the road was the only thing. in his iudG-
ment to be done. He said that no default had
been made on the first mortgage interest. and
that there was no likelihood that any such de-
fault would DO made. though the losses in
earnings have been enormous
Mr.. Boatner asked Mr.. Anderson II the Union
Pacific had made any provision for meeting
the debts Of the United States and whether it
had a specific fund for that purpose The re-
ply was an emphatic NO" He read to the
committee a statement showing the losses OF
the Union Pacific. month By month from May
to December Of last year. as compared with
previous years All added that these losses
still continued and that he did not expect any
material change fAf The better until next au-
tumn.
He thought seven and q half million dollars
. conservative estimate OF the minimum nee
earnings OF the Union Pacific. the Short Line.
the Oregon Navigation. and the Gulf road.
His suggestion was to issue $3.50. oO0
worth OF 3 per cent. bonds. the interest on
which could be met from the minimum net
earnings. Exchange the outstanding stock OF
the Union Pacific. the short Line. and the Gul!
road for new stock. requiring the present
stockholders to ray such an assessment az
OF the debt that could not Ue liquidated by
the bonds. Require the reorganiZsd com pauy
to sell from the S25o.OOO.UOO worth OF
bonds enough bonds to pay on all liens
prior TO those OF the Government. Re-
the Government the full amount OF principal
and Interest due by tho Union Pacific to it in
the three per cent, bonds. In case the repre-
sentatives OF the Government did not think
these liens sufficiently advantageous, they
bonds-in other words. take them ut u prics
below par: Finally apply Ill the remaining
bonds. and such an amount OF the preferred
stock as might be required. to the adjustment
OF all the other secured obligations OF tho
Mr.. Y. l. stetson OF New York requested the
committee TO give the Reorganization Cone
mittee. OF which he was a member a hearing.
The committee. he said. had not yet agreed
upon PLAN but would do SO by next weeS.
On motion Of Mr.. Caruth OF Kentucky. It was
decided to hear Mr.. Stetson and others OF his
committee on Tuesday next. on Friday next
the committee will hear Mr.. Hoadisy. counsel
OF the United States, in tn matters concerning
the Union Pacific; Mr.. Hoadley was to have
been heard Wednesday. but the day was
eral. who is preparing I'LL and report on Pa
cihc Railroad matters. These will net DO
ready before Friday. and Mr. Hoalley wishes
10 address the committee In reference to thsm-