New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-10-20
REPORT ON UNION PACIFIC.
WHAT THE GOVERNMENT DIRECTORS
PROPOSE.
LEGISLATION LOOKING TO THE TERMINATION OF
THE RELATIONS BETWEEN THE GOVERN
MENr AND THE COM
PANY SUGGESTED.

PANY SUGGESTED
Washington Oct 1s-The Government directors OF
the Union Pacific Railway Company nave Suon'i.'eu
their annual renort to the Secretary Of the Interior
The directors are +. Ellery Anderson f''~nus
ree 7 Y ~ Patrick William j. Coomos ana r.
w Doane The report says that by reason Oh the
inability OF the receivers TO meet at maturity 'e
interest falling due the mortgages Oh INC 00'"
pany number Of foreclosure suits aHectins a''o
nars OF the property are pending In the Circui.
Courts OF the United States. The sui' asai''' no"
part Of the property Of the Kansas Pacli'c na"""'
ublch lies east of the Kansas Missouri state ine
50-lo0th Of mile the report states, Is matter VI
great Importance as 1t embraces vaiuaoe 'e' ''a
in Kansas City The Kansas Pacihc Cohso'iA"
Mortgage Company holds the mortgage. lhere
some question. to whether this part Oh INC 'o"1
subject TO a lien OF the Government
In regard 10 the suit brought by Dexter ana Anles
affecting that part of the road extending from
Omaha TO a point FIVE miles west OF oeueh ioi
rotice has been given TO the Attorney-"ehe'"i " -
tendency and the directors say that they are 'o"
fronted with the question as to the enect OF ne,
cree Of foreclosure and SALE followed by an ac'ua
rale on the lien OF the United states. The question
s one OF great gravity which the attention Oh 'he
Department and OF Congress Is seriously "i'''eN
The report adds that as the Government uire0'o'9
have frequently declared their opposition W any
scheme OF Government ownership OF raiiroau prop
critics It is unnecessary repeat their reasons Tor
their convictions.
For the purpose OF reaching a reasonanle oasis oi
settlement ana also affording 10 the government 'e
protection which the present situation appears u
require the directors suggest the folo"ihs aS''o'
+ That It Is desirable TO terminate the relations
between the Government and the railroad prop
critics either by accepting fixed sum OF money or
a determnatc amount Of bonds rather than TO con-
H,rUs far an INDEFINITE number OF years the exist
once of an unsatisfactory and imperfect lien. the
supervision and protecton OF when rpne1fments Of
he Government and the management VI the ran
~ The complications attending the terms 4 any
proposed adjustment are vastly increased by the
retention Of the railroad extending rom haT rht
CIV 10 Denver and from Denver 70 Cneyenn Inns
is caused by the fact that the len OK the nnlIeu
States the Kansas Pacific Railroad extsnas on; on,y
1884 miles west OF Kansas CITY so tna' tne .n
ment of both the lien prior 10 the len OF tne
United States and OF the lien on PaFts 0L saes
involves amounts out OF proportion to the Calm
4 Ill. to be introduced IN Congress Is submitted
with the report. Us purpose being the sern n
The total amount standing 10 the credlt OF the
Central Pacific and Union Pacific United states
amount OF PRIOR lien bonds on the Union Pacilc
Railway Company and the Central PACING Kai-WS
The cash balance in the hands Of the Union Pacific
receivers applicable 10 the | mon aaS i pIopeIE
the arrears Of accru.ng on It's prior oonds
Prior bonds Of the Central Pacific are paii up 10
Union Pacific and Contra. Pacific texciusiye 81 the
Kansas Pache he'd in the several sk 1ht b ru' r
,roG 10 IssRarge or purchase these prior liens
Is Liable be increased If the
nnIer the decision Of the Secretary Of the Treasury
anl t tne n1t1ose above indicated and the same
consideration applies 70 the sinking Lunus hei1 ~
the trustees Of the Central Pacific mortgages IT,.
IL Co..:ress should fig the minimum price when
II is willing 10 receive in satisfaction OF us Chains
at a sum which should meet the approya OF ~
intending purchaser, the entire transaction could
manifesty be 30 arranged between the contrac. ~
parties as to avoid the necessity for any eXpehil
ture OF moneys from the Treasury OF the l nlted
States for the purpose OF taxing up 'ne pI'or ain ,
entirely in the hands of a purchasing committee.
whose soc relaons to the nj one1 Of tbe amount
so agreed be received. A. .,o -,
TIRE bond-aided companies full statements showing
all lands remaining in the ownership Oh the
several companies
The text Of the bill proposed is as follows:
Frst-The rney-Ceneral shall. Immediately
to the United states from the Union Pacific Rail-
wav Company. and the Central Pac;nc Railroad
G9Pa"s and ni forecoa pop Of the lien the
States from Omaha 70 Ogden and similar IF Pro
irgs for the protection and foreclosure or the Hen
OF the United States from Ogden to Sacramento ana
sacSnSbe Secretary OF the Treasury shall have
power to pay. settle and adjust all amounts due or
to become due. for principal and interest WhGn ar
States affecting the properties above referred 70 IN
closure DEGREES or mortgages securing such pr'o'
Third-The entire raiiroau p 3 ~, noba ~
San lose shall under orders OF the Court. to be en-
tered in the suits TO foreclose the said liens be
forthvth sold under the Secretary Of the Treasury
10 such purchasing committee or corporation au-
thorlZad 10 take title the same as will agree to
refund the entire amount advanced by the Govern
mon; FOR the discharge purchase Of prior liens
and II the interest the same, and an amount not
70 be less than a sum limited by Congress as the
rirnrn1 TO be received in satisfaction or It's claims
against The Union Pacific Railway Company ana the
Central Pacific Railroad Company
II AZ such proposed sale no committee OF corpora
ton will bid al the minimum price so fixed. II
shol he the duty OF the Secretary Of the Treasury
,, repOrt the facts the next session OF congress
for such further action in regard TO the minimum
bid as Congress may think proper 70 take.
The Purchasing Committee or corporation pur-
chasing said railroads shall have power 10 possess
c0ntrOt and operate the same. and 20 complete con-
striIction between Sacramento city and oakland;
shall not be allowed consolidate with other trans
continental lines and shall be subjected 70 reason
ahla CO.,, liffons s TO freight and passenger rates.