The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-01-16
RECEIVERS MEMORIAL
PLAN F0R REORGANIZATION OF THE
UNION PACIFIC RAILWAY.
Congress Asked to Approve the
scheme-Trnnscontinental Agree
ment Almost Ready for Adoption.

Receiver f. Ellery Anderson. of the Union
Pacific railway, is in Washington to pre-
sent 20 Congress a memorial of the COM
pany prepared under the supervision of
the receivers and approved by the reor-
| ganization committee, Offering to assess the
stockholders a sum sufficient to pay all
\ponds which have priority over the lien of
ne United States in consideration of an ex-
knsion of the government debt for fifty
Rars at 2 per cent.
Che memorial recites that the indebted
ss of the company to the government is
bout to mature. The approximate amount
/of the company's Indebtedness. computed to
July /. 1895, by the Reilly bill, now pending,
is about 10000 900, of which $S3, 5s9, 512 rep
resents the principal of the obligation to
the United States. Other bonds represent
Ing a like principal of So, 900 are also
about to mature. The bonds are secured by
mortgages prior to the lien of the United
States. The memorial refers to the extraor-
binary reduction In the earning capacity
OF the Union Pacific. and says that there
are no present indications of any improve
ment In the business or earnings of the
railway. Owing to inability to meet the
Interest in the prior liens, suits of fore
closure are about to be instituted; The
petitioners say it appears to be the i'm
whether the indebtedness to the govern
ment shall be protected by a purchase of
ment with the holders of it's Securities or
their representatives based on measures
securing the ultimate payment OF the debt
The memorial says that the par value of
the securities and money held in the United
States sinking fund for account of the
Union Pacific railway on Dec. ], 1894, was
$l4,311, 156, the actual value being about the
same. The cash needed to meet the re-
quirements of the Reilly bill, about SIC, Co.,
900. would represent an assessment exceed
I'M n nA.f III 49, -,N a.al J~1 49,
1t VIII he utterly impossible to obtain the
veryAlarge sum required from the stock
satisfaction of their assessments reasonable
security for the moneys so advanced. The
m possipIe TO sl ners assla any s aehem it VII W re be am
iZation and take care of the government
debt except by means Of a sale in fore
the agency of a successor corporation. The
memorial then asks for the amendment of
'First-Reduce the interest on the bonds
to be issued to the government to 2 per
years. to be secured by a first mortgage on
IsZz miles OF road, the remainder of the
road to be subject to the liens and mort
'.Second-Grant power to f~oreclose the l.
S w miles now under government lien and
cessor company under lne original Union
"Third-Strike out the exceptional re-
strictions on usual corporate powers and
rights imposed by the Reilly bin and give
LILO IOIPOtdLiOA IL dIl IlknlS,
privileges and freedom of action that are
exercised by other railroads"
bound for bonds on line not covered by the
government lien. amounting to $27, 1913, SIS. 1t
ing from maintaining the integrity of the
system without adjustment of the govern
t ths sv aeer Uni wnIe ss prompt action Is aiken
astrous effect upon the securities of the
t6 6messm ana the gS government naes Hen; Il is
should be conceded and early action taken.
A Tottering Association.
The Representatives of eight roads in the
southern Passenger Association met in
New York yesterday. Much dissatisfaction
has existed regarding the management of
the associations affairs, and the following
roads have announced their intention to
withdraw from the associations: The Queen
& Crescent, March ~; Louisville & Nash
vile, April 8; Atlanta & Florida, May 10:
Nashville. Chattanooga & ST. Louis, May
IL; Western & Atlantic. May IL; Morris
town & Cumberland Gap, May Il; Georgia
s sparIeston & Florida o T May e; Memphis aE,n s
Georgia, June 80; The Plant system, June
70; and the Georgia railroad, July 10. H.
walters, president of the Atlantic Coast
line, was made chairman of the meeting,
which resolved itself into an informal con-
was lacking. The others present included
r. w. Wrenn. representing the Alabama
ton & Savannah and Savannah. Florida &
Western railways; I. M. Emerson, traffic
manager Atlant.e Coast line; Maj. T. F.
Spellman and j.. :. Gale, Central railroad
OF Georgia; Stuart r. Knott. first vice pres
ident Louisville & Nashville railroad, and
sger; w: A: Turk. general passenger agent.
senger agent. The commissioner of the as
ISOLATION, Il. b. Stahlmann, and his as
slstant, Monroe Slaughter, were also pres
The meeting lasted almost three hours.
and at its conclusion Chairman Walters
cussed, but no decided stand could be taken
IN the absence OF a quorum We meet
and we hope to patch up our difficulties
II is true that many of our members nave
becomes dissatisfied with the way things
have been run, and unless we can come to
a satisfactory understanding at the Atlanta
nesting, l fear the association will have
to dissolve"
ALI but One Difficulty Overcome.
The transcontinental lines have now ad-
justed their difficulties. with the sole ex-
ception OF the Union Pacific boycott. and
there is a chance that it will be out of the
way before the end of the week. Yesterday
the Canadian Pacific. Great Northern and
Northern Pacific agreed on divisions on
Pacific coast business, and all the lines
have agreed that the old round-trip rates
OF $l04 from Chicago to the Pacific coast
and 500 from st. Paul to North Pacific
points shall be restored. The rate clerks
were put to work on the tariff sheets yes
terday, and the rates will be formally an
noupced as soon as the clerks have finished
their work. This will be in the neighbour
hood OF Feb. 1. So far as the Union Pa
cihc boycott Is concerned there is a strong
chance of a settlement. General Passenger
Agent Eustic, of the Burlington, who is
chairman of the committee of transcon-
tinental lines having the Union Pacific mat
tiers under discussion, made the proposition
to the Union Pacific that If 1t would forego
it's claim for the long haul on all coast
business going via Denver the other lines
would not insist on any change as con-
Germs Ogden, allowing the Union Pacific
to, have the long haul on all traffic going
via that gateway. The Union Pacific has
taken the matter under consideration, and
the general belief Is that Ii will accept the
proposition. If 1t does the last obstacle in
the path of the formation of the Transcon-
tinental Passenger Association will be re-
moved.
sThe Frisco Changes Hands.
Col. John O'Day confirms the report
that he has gained the possession of a
controlling interest in the st. Louis & San
Francisco railroad. His coming into the
company at this time. Colonel o'Day said.
was due to the elimination of a deal that
has been on for some time. He said that
A