Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-05-02
A UNION PACIFIC BILL.
Provisions Of the Measure introduced
by Representative Reilly.


by Representative Reilly.
Representative Reilly of Pennsyivania has
introduced In the House the bill prepared
by the counsel for the committee undertake
ing a reorganization of the affairs OF the
Union Pacific Railway Company. As here
tofore stated, the bill is the same as that
prepared by Attorney General Olney. with
the exception Of the eighth section, which
relate to the foreclosing Of the lien Of the
United States whenever there Ia q default
In respect Of any obligation or condition
that exists in favor OF the United States
upon the company. The following are the
provisions Of the section In the bill SUBJ
mitted by the counsel covering proceeding,
Of this kind: Whenever there il q default
In respect Of any obligation or condition for
which any lien now exists in favor of the
government upon the property OF the COM
pany the Attorney General IL authorized to
enforce the claim and foreclose the lien by
sales sales or otherwise. by proceedinss in the
Court OF Appeals in the District Of Column
bia Any sale to enforce q lien of the
United States IL to embrace all the prop
erty or the company subject thereto,
wherever situated. and all the franchises Of
the company with respect to said property
The property 10 to be sold to the highest
bidder. subject to any prior lien or incum-
brance thereon. and for q sum not less than
VIC dihount Oi tue OeDt 10 the government
for the payment or redemption OF which
the lien exists. including interest to the
confirmation Of sale. At such sale the At
torney General II in his Judgment the in
may bid the amount Of the debt Including
interest
In case the portions Of the railway OF the
company subject to liens In favor of the
sale for the satisfaction of any debt of the
company. or for the enforcement Of the lien
thereon, by or In the interest of persons
agreeing to . plan Of reorganization con-
persons. upon fling in the once Of the Sec
rotary OF the Treasury copies OF the de-
crees Of sale and Of confirmation under
which such purchases are made, and q GER
cepting the provisions Of the bill and speci-
lying the corporate name Of the reorEan-
lied company adopted by them. and naming
hfteen directors, who are to be directors for
the same powers and franchises that are
now possessed by the Union Pacific Rail-
way Company; and such corporation In
stead Of the Union Pacific Railway Com
franchises in the bill In terms granted TO
the Union Pacific Railway Company, or
said reorganized company, including the
right to exchange for and discharge the
claims and liens Of the United States
against the company and its property by
issue and delivery to the Secretary OF the
Treasury OF new bonds OF said corporation
to the amount and secured in the manner
as provided in sections i and of the bill.
In case Of such purchase the property Is
to be used to carry out the plan of reorean-
.zation. and IL to be charged with a trust
Tor the complete execution therefor II "a
provided, however, that IL under this plan
the United States receives bonds Of such
new company In liquidation of its debt the
President Is to appoint five directors of the
company to serve for the first year with the
fifteen directors named In the Certificate of
organization. After the first year the board
OF directors Is to consist of fifteen persons
chosen by the stockholders and of Ave gov
eminent directors. Any reorganization plan
adopted may provide that seven of the d.
rectors to be chosen by the stockholders
shall be chosen annually by the holders OF
preferred stock. to be issued pursuant TO
said plan. and the remaining eight direc-
tors by the holders OF the common stock OF
the company.