The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-01-16

New York, Jan. 15.-Receiver E. Ell
lery Anderson, Of the Union Pacific
road, is in Washington to present to
Congress a memorial of the company,
prepared under the supervision of the
receivers and approved by the re-or-
ganization committee, Offering to as
sess the stockholders a. sum sufficient
to pay AID bonds which have priority
over the lien of the United States in
consideration Of extensions of the gov
eminent debt for so years at per
cent.
The memorial relates that the indebt-
edness of the company to the govern
ment is about to mature. The approx
innate amount of the company's indebt-
edness, computed to July 1, 1885, by
the Reilly bill, now pending, is about
SO, 100000, of which S33, 512 repre-
sen.ts the principal of the obligation ITO
the United States. Other bonds repre-
senjting a like principal of So, 5S2, 600
are also about ito mature. The bonds
are secured by mortgages prior TO the
lien of the United States.
The memorial refers to the extra
ordinary reduction in the earnings ca
pacity of the Union Pacific, and says
There are no present indications Oh
amy Improvement i'm the business, or
of the earnings of the railways. Owing
to Inability to meet their interest IN
the prior liens, suits of foreclosure are
about to be instituted. The petitioners
say ut appears to be the imperative
duty of Congress to determine Wheuler
the Indebtedness of the government
Shall he protected by the purchase OF
the railroad in its Behalf, or 'py an @o-
jugtment with the holders OF IT'S Sc
c1Ir-itties, or their representatives pased
ON measures securing the ultimate
payment of THE debt of the Onlteu
States. ,,,,o If
The memorial says the par value OF
tha securities and money he'd IN the
United States sinking fund for account
of the Union Pacific railway on De
cember l. 1894, was $14,3l1,l56, the &C
tual value being about the same. Inc
of the Reilly bill, about $2O,OOO,OOO'
would represent an assessment exceed
ing 80 per cent The memorial de-
clares it will be utterly impossible to
obtain the very large sum required
from the stockholders, unless 1t IS pos
sible to offer them in satisfaction of
their assessments reasonable security
for the money so advanced.
The memorial then asks for the
amendment of the Reilly bill in these
particulars:
First-Reduce the interest on the
bonds to be issued to the government
| to 2 per cent; make the bonds payable
| in 80 years, to be secured by a first
mortgage on 1922 miles of roads, the
rest of the road to be subject to the
liens and mortgages which now cover
it.
Second-Grant power ito forecIoge the
| 1892 miles now under government lien
and permit foreclosure purchase and
a successor company under the orr
! gfnal Union Pacific acts.
Thfrd-Strike out the exceptional
restrictions on usual corporate powers
and rights imposed by the Reilly bill
and give the successor corporation the
same rights, privileges and freedom
of action that are exercised by otdeI
railroads.
! 1t is pointed out the company is
bound for bonds on lines not covered
by the government lien amounting tC
$27, 933S75. 1t will be impossible to OBJ
tain benefits resulting from maintain
ing the integrity of the system with
out adjustment of the governments
debt. Unless prompt action is taker
the system win be dismembered witt
disastrous effect on the securities OF
the company and the government
lien: 1t is therefore essential these
amendments should be conceded anC
early action taken.