The Red Cloud chief., 1895-10-25
GOVERN MENTrS PLAN.
ANOTHER u. p.
TON SCHEME.
Tho Report Of the Government Directors
Is In Secretary smiths Hands and Rec
om,nends the C~onsoiidat' on of Central
and Union Pacific.


WASHINGTON, Oct. The renort of
n government directors of the Union
Pacific railroad company has been in
tine hands OF the secretary Of tho in
terror for the past three DAYS Its rec.
concentrations will act o., a cold bath
to the plan of reorganization PROMISED
Dy The reorganization commission.
The plan was to have been c,nsrm-
mated practically without regard to
the government debt while the report
OF government directors PROPOSES n
plan whereby the government NAV be
reasonably sure of payment of q large
percentage, IL not ali, If the debt due
IL 10y not only the Union Pacific. hut
ny the Central Pacific also.
Inc basic proposition on which the
report Is made is the consolidation Of
ttc Union Pacific and Central Pacific
into u single trunk line extending
from omana TO san Jose. Cal. thus
connecting the Pacific coast with one
OF the railway center Of the Trans
mississippi by the shortest line in ex.
lstercc and with ample terminal
facliitics ut each end. Under existing
conditions the various feeders of III,
Union Pacific will be loppcd away
from the parcn. system by foreclosure
proceedings on the part OF their. re-
spective bondho,dcrs, aud save for tho
protection which the Interstate com.
MERGE and various state railroad com.
mission acts may afford the new trunk
line would be placed at u disadvau-
'agc in securing the advantage which
would naturally come to IL from the
lines in question. But az Il trunk line
1t ic pointed out that IL would have
vast advantages over any of the other
tactic roads on account Of IT'S short
ness and natural sources. 1t is held
that the lease of the Central Pacific by
the Southern Pacific can be broken
an set aside. This done, The
way will be clear for the plan
of reorganization with the two roads
treated AZ one. 1t is shown that even
in the year of the panic tho net earn.
lngs were abou $500. 900. sufficient
10 pay five per cent on 500, 900. 600
bonds. and leaving $500, 900 for dis
~trlbution among sha rcho)dcrs. IL
TINS showing can be made with the
Central Pacific, worked solely for the
the profit Of the Southern Pacific. and
the Union fc consequently starved
by deprivation OF its rightfui source,
of income, it isargued tina, with the two
roads worked in harmony. the cnor.
nous traffic that would Immediately
pass over them would At once increa se
their earnings to figures equal to. ii
in excess OF, their most prosperous
days.
1t is pointed out that under the pro.
posed consolidation the interest of the
Eastern trunk lines centcring at Omaha
will be at once gained and IL is sug-
that II AN open proposition
were made by the government to lease !
or sell the combined system to that
trunk line or combination of capital !
lists which would pay to the govern
ment the largest amount on the
indebtedness of the two
roads above u minimum fixed at. it is
S15. 000, 600 would be strong
to secure control. Tins
plan, rs outlined by the government
directors, has been pronounced
by high officials of the Union
In California, especially, Inns
project been strongly Endorsed
the narrow circle Of those to
it could I've submitted in conf
pr'or to the publication OF the
A bill has already been dra wu
by one of the government directors to
out the subject sought. and will
be submitted to the Secretary OF tho
Interior, the Secretary of the Treas.
nry and Attorney General for an.
If favored by them. IL will be
in the coming session Of
Congress.