The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-10-28
RECEIVER MINK TALKS.
His Views the Affairs of the
Union Pacific,

Union Pacific.
SAN FRANCISCO, Oct. 27.-Oliver
". Mink of Boston, one of the receiv-
ers of the Union Pacific; W. r. Kelly,
assistant general solicitor of the Union
Pacific at Omaha. and general attorney
Of the same system for Nebraska and
Iowa; Erastus Young, general auditor
of the Union Pacific and Zera. Snow.
solicitor Of the Union Pacific at Port
land, Ore, who are in this city, held a
prolonged conference in relation to the
settlement Of a dispute between the
Union Pacific and the Oregon Railway
& Navigation company. over the set
Lenaent of certain claims CONSEQUENT
upon the appointment of a receiver for
the Oregon Railway & NaViga ton COM
pany, which was formerly a part of the
Union Pacific system. The matters I'M
der consideration, Mr.. Mink said, We're
Of a nature similar to those which
formed the issue in the suits recently
argued before the circuit court of ap-
peals ill this city by the attorneys for
both companies.
When asked for his opinion on the
recent report of the government direc-
tors Of the Union Pacific, MI Mink
said:
Il have only just received a CODY of
that report and have not yet had a
chance TO peruse it carefully. But
from what I can learn from the news
papers I understand that the govern
menS directors have recommended that
the government foreclose its mortgage
on both the Union and Central Pacific,
take up the first mortgage, and after
securing possession of the through line
from Omaha to San Jose, sell it to the
highest bidder. The government direc-
tors of the Union Pacific who, by the
way, have no jurisdiction over the
Central Pacific, have declared that the
best interests of the public would be
subserved by such a proceeding They
have satisfied themselves, no doubt,
that the road would sell for much more
than the amount of the first mortgage,
and that the margin of profit over and
above the amount of the first mort
gage, which the government would
have to look after, would go much far
Their toward wiping out the government
Indebtedness than any other plan of
procedure.
ION the other hand. the first mort
gage bondholders are now attempting
to reorganize the Union Pacific on lines
which it is hoped will enable the gov
ernment to recover as much more on
its second mortgage, as the second
mortgage is worth. It is proposed that
stock to the amount Of 100000 900 and
bonds in the sum of $75,000,000 be issued
TO the present holders in lieu of the Sc
curities they now possess. The pro-
portion of stock a1I 5onds which would
be given for the old stock and bonds
has not yet been agreed upon, but it
is thought that there would be enough
left to satisfy the governments claim
on the road.
"The governments lien on the road.
e should be remembered. is simply a
book account. and is not represented
by bonds It is accordingly worth only
what it would bring in the open mar
ket. The plan of the government direc-
tors. should say, would be a good
way of determining the value of the
governments lien on the property.
b. whether the United States govern
men is in a position to go into the
railroad business is a question which
| am not prepared to discuss