St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-04-27

bonds are issued shall not exceed S. 500,
1 600. This limitation, by cutting down
the fixed charges from s4.v00.090 to
S5.0O0.O00 seems to make it reasonably
certain that, after the reorganization,
The company can hardly fail to operate
its road successfully, and to meet all
legai requirements upon its revenues.
| Sixth The existing sinking fund of
the United States is utilized by the cau-
collation. of such part as consists OF eX-
listing first mortgage bonds ard by plac-
ing the balance of 1t with the sccretaI y
of the treasury as additional security
for the new bonds accepted by the
| United States.
! REGARDING PLAN OF REoRGANIZA-
| TON.
Sevantl-A plan If reorganization has
not yet been formulated. Probably but
| little progress can be made with such
| plan until the requirements of the gov
eminent are clearly ascertained. Ii has
| been claimed that the government
| should content itself with prescribing
what it will accept in payment of its
debt and leave all the other terms Of
reorganization to he settled by the di-
rectOrs and stockholders interested. 1t
would be grossly improvident for the
| United States 10 assent to q plan which
was not known in advance and which
was not thus ascertained to be such
that under it the reorganization COM
mittec may be expected 10 permanently
operate lis road and fulfill all its private
and pubic obligations. A plan of that
| character would simply bring the gov
| erhment within short time face to
face with the same conditions that now
| confront 1t. The government ought
not to consent to scheme which it
does DOT know to be framed on princi-
| plies of justice to all parties. While
| permitting the private interests IN
volved all possible latitude, the pro-
| posed bill puts limitations which are
| simply what sound policy and justice
| require.
Thus fixed charges after reOrganiZa-
ton, by fixing All amount which inter
| est charges, guaranteed rentals, ETC.,
shall not exceed. So the entire scheme
of reorganization must he satisfactory
TO and receive the cooperation of the
law officer of the government. and the
bill also provides in terms that the plan
of reorganization shall confer the same
rights, privileges and benefits and im-
pose the same conditions upon all mem-
GerS of each class, without diScrimlna
ton OF preference.
SHOULD DIFFERENCES ARISE.
Eighth-It being highly improbable
that differences should not arise re-
speeding the rights of parties under the
plan Of reorganization. the bill provides
forum by which they shall be adjust
ed. The forum suggested is the court
OF appeals of the District OF Columbia.
1t Eay be suggested that until plan
of reorganization is agreed to on behalf
or the private interest congress should
~! Init
ments of the United States are first
authoritaiively defined, however, the
private parties are without the ground
work upon which reorganization plan
must rest. The bill will furnish that
ground, will put creditors ana stock
holders in possession OF the exact
conditions they have to deal with, and
enable them 10 agrees upon plan OF
reorganization. How LARGELY the United
States III its creditor capacity is inter
ested in the success of such plan has,
perhaps, been already sufficiently
urged. But it may not improperly be
added that much more is involved than
the exact per cent TO be collected on
the public debt. Congress chartered
the Union Pacific Railway company to
promote great public ends and to secure
great public advantages and granted it
condition that it should transmit
lis dispatches, mails. troops
and munitions of war, sup
plies and public stores for the gov
ernment. Unless the objects have
ceased to be of value OF that corpora
ton like the Union Pacific Railroad
company is needed for their accomplish
ment, the rehabilitation of that COM
pany or the substitution of another
with like franchises and subject to the
like duties is imperatively demanded on
the broad ground of the general well
fare. 1t is of Importance to the public
and OF Immense moment to the people
of the states and territories traversed 10y
the road that the existing receivership
should give place to The managementOfa
SOLVENT AND STRONG CORPORATION
as soon as practicable. In the hands of
the receivers the road is comparatively
inert property, simply a mass Of assets
TO be kept intact, if possible, for ulti-
mate distribution among creditors. 1t
will again become live property, be a
principal factor in the growth and pros
perlty of the many communities served
by 1t OILY when the control OF the
courts, Which can do no more than pre-.
serve the existing status, is superseded
by the control OF owners who can deal
with it on the principles applicable to
all business enterprises. | am author
lied 10 say that the special counsel of
the United STATES in Union Pacific mat
ters. Hon. George Hoadiev, of New
York, whose valuable aid aud c0-Opera-
tion in the preparation of the proposed
bill l have freely awaited myself Of, ell
| tirely agrees lii the eXDediency of such
| legislation and in the views expressed
| i'll this report.
IT PLEAsEs CONGRESSMAN
| There is much satisfaction in congress
sion-i circles over the prospect of set
Element Of the Union Pacific debt.
Attorney General Olney's plan of set
| tleiI:ent is to be presented to the house
| Pacific roads committee tomorrow, and
the railroads plan will be presented
next Tuesday. In the meantime reports
come from Boston, where the annual
meeling OF the Union Paci tic WAS held
yesterday, that that government and
the road have reached an agreement.
Chairman Reilly, of the Pacific roads
committee. said the agreement, if it
had been reached, would greatly SIM
plify the question:; it would still he
necessary to have congress approve it,
| yet it overcame the great difficulty of q
Iii agreement between the parties Inosl
| in .terest. The agreement, as re.
p.rt Il from Boston, is for rcfunding
of the big debt. MIR. Reilly says this is
the plan in favor in the committee, ant
generally preferred in previous con
| crosses. The most significant feature
of the agreement is that il dsposeS 0
the plan for foreclosing the govern men
debt, and taking possession o. the
| Union Pacific road.