The Meeker herald., 1895-10-19
GREAT TRUNK LINE.
DESTINY OF THE UNION PA
CIFIC.
The Government Directors Have . Plan
for Consolidation With the Central
Pacific and Leasing to the Highest
Bidder.

New York, Oct ia special to the
World from Washington says the report
of the government directors of the I'm
ion Pacific Railroad company has been
in the hands of the secretary of the in'
terror for the past three days, and it is
understood that it will be made public
tO-da. It's recommendations will act as
a cold bath to the plan of reorga MIA
tion proposed by the reorganization conf
| mittee. That plan seems to have been
constituted practically without regard
to the government debt. while the report
Of the government directors proposes a
plan whereby the government may be
reasonably sure of the payment of a
large percentage. if not all, of the debt
due it, by not only the Union Paclflc,
but by the Central Pacific.
The basic proposition on which the re-
port Is made is the consolidation of tile
Union Pacific and Central Pacific rail
roads into n single trunk line. extending
from Omaha to San Jose, California.
thus connecting the Pacific coast with
one Of the principal railway centers of
the trans Mississippi country by the
shortest line in existence, and with am
pie terminal facilities at each end.
1t is held that the lease Of the Cen
trail Pacific by the Southern Pacific can
be broken and set aside. This done.
the way will be clear for the plan Of re-
organization, with the two roads tdeat-
ed as one 1t is shown that even in the
year of the panic the net earnings were
about $7,JOO.OOO sufficient to pay per
cent. of the $10O.0OO,OOO of bonds, and
leaving $2.5OO,0OO for distribution
among the shareholders. II this show
ing can be made with the Central Pa
ciiic. worked solely for the profit of the
Southern Pacific, and the Union Pacific
consequently starved by deprivation OF
its rlghtful sources of income, it is ar.
gued that with the two roads worked
In harmony, the enormous traffic that
would Immediately pass over them
would at once increase their earnings
to figures equal to, if not in excess of
those of their prosperous days.
1t is pointed out that under the pro
posed consolidation the interest of the
Eastern trunk lines centering at OmahG
will be at once gained and it is suggest
ed that if an open proposition were
made by the government to lease OF
sell the combined system to that trunk
line or combination of capitalists whcl
would pay to the government the largest
amount on the combined Indebtedness
of the two roads above minimum fixed
at, it is suggested S7j,OOO,OOO. there
would be strong competition to secure
| control
This plan, as outlined by the govern
ment directors. has been pronounced
| feasible by high officials OF the Union
Pacific. In California especially has the
project been strongly indorsed withl
the narrow circle Of those to whom i
could be submitted in confidence priol
| to the publication of the report.
A bill has already been drawn by ont
I the object sought, and it Will be sub
| mitted to the secretary of the interior
the secretary of the treasury and the at
torney general for approval. II favored
by them it will be introduced early IN
the coming session Of Congress.