Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1895-10-19
up. REORGANIZATION PLAN
Recommendations Rads by The Coy.
eminent Directors
Looking 90 tho Pay ment OF th. In-
debtsdnc-s vt the Usioa Pacific
aud Central Pacific.

and Central Pacific.
NEW YoRle, Oct 10. "A special 10
The World from Washington says: The
report OF the government directors OF
tho Union Psc,no railroad cois- ?any
has been In tho hands OF tue secretary
Of the interior for the Iai; three days
and II " Understood that II will be
made public today. Its recommends.
tons w:il act as cold bEth TO the pla u
OF reorganization proposed by the re-
organization committee. The plan
seems TO nave been constituted pTAc-
tioaliy Without regard to tho govern
mont while tho repor, OF the govern
meni dirtoiors proposes n plan whereby
the government may De- Tessonably sure
OF tins payment OF n large percentage,
N not all, OF the debt uue II by tue
Central Pacific.
The basic proposition on which the
report IN m ,ue, IL the consultation ~
tho Union Pacific and Central PAc fic
RAILROADS into q single trunk limo ex.
tending from Omaha to Ban joe, CAL,
thus connecting the Pacific COST with
one VI tue principal railway oont.rs Of
the tranl- Mississippi country by the
shortest line IN existence ana with
ample terminal faointi,s at each end.
Under existing conditions the various
feeders OF tho Union Pacific viii
DO Topped away from the parent
eystsu ny foreclosure proceedings
on the part Of their respective bond.
holders, aud save Tor tho protection
which the Interstate commerce anu
various stats railroad commission acts
may afford, tho now trunk line would
be placed ata disadvantage In securing
the business which would naturally
come 10 1t from Inc lines In question.
But as trunk line II Ia pointed out
that II would have vast sdvautago s
over any uf this other Pacific railroads
ON account Of its sh0rtoess AMI from
other natural sources. IL IN held that
the lease OF the Central Pacific by this
Southern Pacific can be broken AMI
rot nride. TAis dout, the way viii be
clear for tbs plan OF Reorganization
with the two TOauH tioned as Que. IL
Is shown that even IN the year OF tao
unnlc tue net earniugs we're about
$1,000 QUO, ,uillclent to pay per cent
on slOO,OOJ,OlJ VI bIndr, anu leaving
81 bUO,UOJ tyr distribution among
shareholders. IL this showing can lie
matte With tho Central Pacific wofkol
solely Tor tue ptofis u tho Is utaern
Pacific AMI the Union Pacific, uoust-
Vueutly starved by deprlyAtlOn Of Its
nghiful sources OF income, Il 10 argued
that with tho two roads worked Ia
harmony, the enormous trEiilo that
would imui diately pas over them
would nj once Increase their earnings
10 ngufes equal 10, n not 10 excess VI
those Of i,tir most prosperous days.
IL Is pointed out that under the pro-
POSED consolidation the Interest OF tue
eastern trunk lines centeriug nj Oma.
ha viii DO nj once gained, and ~ "
suggested that II an open proposition
were made by ito government to
lease or sell tue combined system u
that trunk line or combination OF
oapitalisis which would pay 10 the
government tho largest amount on this
combined indebtedness OF tho Two
Toade aOove n minimum fixed at, IL Is
suggested, s5, 000,0 900, there would be
strong competition to secure control.
This plan, ms outlined by tho gov
srnment directors, nas been pro.
nOunctd feasible by high ofilci,ls OF
the union Pacific. Ia California,
especially, hSs tue project been strong
~ iudofsed Wishln the narrow circle
OF Those 10 wnom u could DO submiI-
ted IN confidence prior to the IubiicA-
ton OF Tue report
a I'LL has already been drawn by
one OF the government directors to
carry out the object sought anu Will be
submitted TO tue secretary OF tue inte-
rlor anu Tho secretary 81 tho treasury,
and too attorney general for approval.
Ii favored by them, II viii be intro.
duced early In the oJming session OF
Congress.
,uv prco,,,psn.r,o,s