The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1894-05-11

NEW YORK. May l0-ln pursuaucs Of a
notice TO Mr.. I. j. Morrison, member of
the New York par. that the house commit
tee on Pacific railroads would hear "a
presentation of the views he represents
regarding the Union Pacific railroad, that
gentleman has sent u the committee -
lengthy communication embodyinS bis
views and enclosing the draft for al acE
entitled: IA bill to provide for payment
OF the United States bonds. issned In aid
OF the Union Pacific and Kansas Pacific
railroads. with the proceeds OF the govern
msnt mortgages, placed on the railroads
for that purpose"
He says the relations between the United
States and the Union Pacific railroad are
treated in the ball from purely business
standpoint. His proposition seems to b.
reply to the plans of the attorney general
aud the reorgani cation com mitfee, snd sp-
pears TO be the first suggestion in favor OF
sustaining the full claim OF the govern
ment. it being understood that Mr. Nor
rison's clients are willing 70 purchase she
government mortgages. He says the bill
proposes that the government shall real ze
from It's property rights in the rail-
roads the funds necessary for the
payment OF the Uaited States per cent
subsidy bonds, with interest, 10 accom-
piish which u authorizes the secretary Il
the treasury to assign the goverumenE
mortgages for cash. The bill, la order u
facilitate the acquiring of the goverEmsn
mortgages by the boud aud stock holders
of the Union Pacific Railway conn ,ny.
who Will desire 10 acquire them. aud avoid
the foreclosure features of the bill, ths act
enables the company To issue Its bonds, To
be secured by an assignment of the gov
eminent mortgages To the trustees, the
compAny's bond anu stock holders TO
have the fret privilege OF subscrib-
ing to the company's bonds. the
totsl amount receivable being the total
amount of net liability OF the COMPANY,
being the principle and interest of the aid
bonds less the sinking fund.
Mr.. Morrison argues that the property
affords TO their security holders desira-
bic investment, as ut 2 per cent on tss. Co.,
600. only 81, 1o1 600 would DO required for
interest, which Is less than one half OF the
Earnings would then be an
p!icable To the payment of interest OF thsir
own present Union Pacific securities, or
the holders of bonds could pay themselves
four per cent Of tue same amouat
Of new bonds out OF the
net earnings OF the government
divisions IL addition. they could give
themselves new general mortgage on
their system" or branch lines. and othsf
eminent; or. II they did not choose To TAXI
up the first mortgages with their owG
they could renew them a.
per cent. or as prior lien, with long
time bonds, The government would a.
once accept It's claim capitalized aud paid
over and taus sever all connections with
the company. The company, theftupon
would enjoy full latitude ia financing. a,
we'll rs IN its general corporate affairs.
The transfer Of the government interest
1pou full payment i the primary purpose
II the bill. Ia All thereof, auI ia cid ti0n
hereto, IL provides Tor foreclosure pro
,eediog IN the Interest OF any one whn
nay become the owner Of the government
irB-. la Case the bond and stock holders
u the Union Pacific Railway company do
lot avail themselves OF the favorable terms
or redemption provided in tbis bill. aui
be government thereupen forcclOses, tbs
Importance OF the jaiIclai facilities herein
provided Is much accumulated.