Kansas City daily journal. [volume] (Kansas City, Mo.) 1892-1897, 1895-11-22
RECEIVER CLARK TALKS,
DENIES RuMORs CONCERNING THE
UNION Pacific REoRGANizArioN.
The Eikhorn May Ipaueuratc n Rate war
Trans Missouri Association Adiourns-
Great Northern Employees Being
Questioned-R. II Robbins Dead.

ST. Louis, Mo. Nov. 2i.-S. II. II. Clark,
OF the Union Pacific, stopped here to-day on
his way to New York to attend n meeting
OF receivers. In an Interview he said: "My
present trip to New York has no particular
significance and presages no important step
toward settling the nuddled affairs OF the
Union Pacific. The most important action
taken at the coming meeting will be the
appointment OF a successor to Senator John
M Thurston, who recently resigned the po-
sition Of general solicitor While. the. Sc
lection has not been definitely made, there
Is every Indication that the appointment
VIII fan t.. Judge W, X Kelley. present as
sistant solicitor OF the road"
rs there any foundation for the rumor
that Senator Thurston's resignation was
due to differences Of opinion with the re-
he was asked.
NO; the least. Press OF business alone is
responsible for his resignation"
What about the rumor that n wealthy
Eastern syndicate headed by the Goulds.
sage and the NanderbiltN, Is planning to
secure control OF the road and take IL out
of the hands OF the rcccivers?'
81 know nothing Of such rumors, hut my
Rnowlsdge i Of ,se stu9,ion is such that
ent conditions no syndicate would be mad
enough to do what you mention The only
road would be by assuming its outstanding
mortgage debt. and taking the road out
of the COURTS hands As 1t is n foregone
conclusion that the road can never be made
to pay the interest on this debt and its
operating expenses, It would certainly be
bad Investment. and shrewd fnanciers
would be the last to undertake It,"
What is the present condition OF the road
and prospects for n final settlement"
''The road is in excellent shape at present
as regards its rolling stock and rnadhed
We have been careful to allow no deterior-
alton in this respect. But otherwise the
prospect is bad. Heavy mortgages fall due
early In 1896 and the road has no money to
meet them or pay the interest Something
must be done this winter In the way OF a
fnal settlement. or the road will be COM
pletely bankrupt"
What plans are being consdered?'
Tho REORGANIZATION committee is now at
work formulating n plan. 1t proposes 10
make a new bond issue for the total indebt-
etnesS at rate OF interest that will en-
able the road to meet its fixed charges.
Preferred stock is to be issued to cover the
deficit caused by reducing the interest.
This stock may be of value In case the
road ever earns an excess over its running
expenses and fixed charges This seems
like good plan
10. you anticipate government interfer-
ence?"
NO do not. There has been some talk
OF the government which holds the second
mortgage bonds, buying the first mortgages
and operating the road until II finds
purchaser. But as this involves n possible
loss to the government they Will hardly be
carried out. The matter is a complicated
one and II Is absolutely necessary that the
road should be placed in position where 1t
can start anew 10 face the new conditions
Otherwise there is nothing but bankruptcy
ahead"