The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-01-17
THE UNION PACIFIC DEBT.
Proposition Submitted 20 the Govern
meut by Reorganization COMMITTEES.

fropoettton Submitted TO the Govern.
meut by Reorganization Committee.
New York, Jan. 1s--Receiver E. Ellery
Anderson. OF the Union Pacific road. is in
Washington City TO present to congress
memorial OF the company prepared under
the supervision OF the receivers and APP
proved by the reorganization committee,
offering TO assess the stockholders a sum
to pay all bonds which have priority
over the Hen of the United States. in con-
slderaiion OF the extension of the govern
ment debt for fifty years at per cent.
The memorial relates that the Indebted
ness OF the company 10 the government Is
about to mature. The approximate amount
of the company's indebtedness computed
to July l. 1895. by the Reilly bill, now peasi-
Ing, is about ss0oooeDe. Of which SO, so. 81
represents the principal OF the obligation
to the United States. Other bonds, rep
resenting like principal OF SO, go coo, are
also about to mature The memorial re-
fers to the extraordinary reduction in the
earning capacity of the Union Pacific, and
says there are no present indications OF
any Improvement In the business or OF
the earnings OF the railway. Owing to
inability to meet their interest In the
prior liens. such foreclosure is about TO
be Instituted.
The petitioners say II appears to be the
imperative duty of congress to determine
whether the indebtedness OF the govern
ment shall be protected by a purchase of
the railroad in ats behalf or by an adjust
nsent with the holders of its securities or
their representatives. based on measures
securing the ultimate payment OF the debt
OF the United States. The memorial says
the par value OF the securities and money
held In the United States sinking fund for
account OF the Union Pacific railway on
December /. 1884, was sii.s1i.I5s. the actual
value being about the same. The cash
needed to meet the requirements OF the
Reilly bill. about $50, 900, would repre-
sent an assessment exceeding 80 per cent
The memorial declares that IT Will be ut
terry impossible TO obtain the very large
sum required from the stockholders unless
1t is possible TO offer them In satisfaction
OF their assessments reasonable security
for their money so advanced.
The memorial then asks for amensfment
of the Reilly bill in these particulars:
Fyrst-Reduce the Interest on the bonds
to be issued 10 the government . per cent. !;
make the bonds payable in fifty years, 10
be secured by first mortgage on see
miles of road, the rest of the road 10 be
subject TO the liens and mortgages which
now cover IT. Secogsi-Cirant power to
forecIose he l.s2. miles now under gov
eminent lien and permit foreclosure pur-
chase and a successor company unSser the
original Union Pacific act. TGsird-Strike
out the xeceptional restrictions on the usu-
al corporate powers and rights Imposed by
the Reilly bill and give the successor cor
poation the same rights. privileges and
freedom OF action that are exercised by
other railroads
II Is pointed out that the company Is
bound for bonds on lines not covered by
the government lien amounting TO 81, a33, :
SIS. 1t viii be impossible to obtain the
benefits resulting from maintaining the
integrity of the system without adjust
ment OF the government debt. Unless
prompt action Is taken the system viii
be siismemSerea. with a siisa strons effect
on the securities OF the company and the
government lf@n