The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-11-16

Omaha. Nov. 15-An interesting fea-
ture of the proposed reorganization of
the Union Pacific developed today in
connection with interviews with local
railroad men had by Frederick Coudert
and John w. Doane, government re-
ceivers of that property, who passed
through last night en- route east, after
examining the system.
Mr.. Coudert expressed himself as be-
ing favorably impressed with the Union
Pacific properties and thought the
differences existing between she Union
Pacific, Denver & Gulf and the Union
Pacific company would be adjusted 10
the advantage of both companies. he.
garding the plan of reorganization OIL
the Union Pacific company, as pro
posed by the government directors, ne
stated he was heartily in sympathy
with it and looked to Congress TO do
something at this session that would
start the bail rolling to- a final settle
ment of the veXed problems.
The scheme of the directors, as re-
Elected in this report, is to substitute a
per cent blanket mortgage Tor the
present per cent mortgage soon to be-
come due. In other words, to pay the
government debt by mortgage for
$50, 000, 900 dated July l, 1898; SUBJECT
the entire railroad or railroads to a
single mortgage; under which issue .
per cent 100 year bonds to an amount
such that the accruing interest VIII not
exceed the minimum earning power;
amply the moneys and securities in the
sinking fund to the part payment or
extension of bonds which have priority
of lien over the lien of the government,
and so on until the stock of the COM
pany is all provided for under tho new
conditions.
''Of course said Mr.. Coudert, the
government directors are we'll aware
that no plan of reorganization can be
carried out without the approval and CO.
opertion of a, large majority of the
holders of all classes of securities. There
may be somes difficulty experienced in
substituting the sinking fund Fights for
a 3 per cent bond at 100, as provided
for in the proposed application OF Sc
curities, and in changing the collateral
trust skies to threeS at loo, but with
those exceptions cannot see why the
plan submitted is not a good one. 1t
is the judgment Of the directors that
no plan of reorganization can be car
r,ied into effect without complete fore
closure of the property of the company
to be reorganized, including in such
foreclosures all of its property held in
collateral trusts"
M. Coudert felt hopeful that such
scheme as proposed by the directors
might be favorably acted upon by Con-
gress, by recognizing that the govern
1nent had better be satisfied with a
half loaf than getting nothing, in the
event of the first mortgage bondhold-
ers beginning foreclosure upon default
of the payment of interest.
The report, speaking of the second
mortgage held by the company. says
that its lien is imperfect and incom-
rIete. 1t is for this reason impossible
20 marshal the securities intended TO
be issued so as to give the government
as favorable a settlement as must be
offered to those holding security of a
higher class. The real question to be
considered is whether the proposition
of the government is a better PROPOSE
Zion and will secure a better return to
n than it could obtain by resorting to
q foreclosure of its lien.
Messrs. Mink and Anderson, of the
receivers, Mr.. Boissevain and his party
and General Manager Dickinson are on
the navigation company's lines today.
The proposition of Mr.. Coudert. was
Generally discussed by the recei~esG-