San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1895-10-19

NEW YORK, Oct. ia special
to the World from Washington
says: The report Of the govern
ment directors OF the Union Pacific
railroad company has been in the
hands OF the secretary Of the inter-
ior for the past three days, and 1t
is understood that it will be made
public today. Its recommends
tions will act as cold bath to the
plan of reorganization committee.
That plan seems to have been con-
stituted practically without regard
to the government debt, while the
report of the government directors
proposes plan whereby the gov
eminent may be reasonably sure
Of the payment of large percent
age of all of the debt due it, not
only by the Union Pacific but by
the Central Pacific.
The proposition of the report is
the consolidation of the Union
Pacific and Central Pacific rail-
roads into a single trunk line ex-
tending from Omaha to San Jose,
thus connecting the Pacific coast
with one of the principal railroad
centers of the trans-Mississippi
country, by one Of the shortest
lines in existence.
Under existing conditions, the
various feeders of the Union Pa
cific will be Topped away from the
parent system by foreclosure pro-
ceeding on the part Of their respec-
tive bondholders, and save for the
protection which the Interstate
commerce and various state rail-
road commission acts may afford,
the new trunk line would be placed
at a disadvantage in securing the
business which would naturally
come to it from the lines in ques-
ton. But, as a trunk line, it is
pointed out that it would have
vast advantages over any OF the
other Pacific railroads on account
of it's shortness and from other
natural sources.
1t lie held that the lease Of tho
Central Pacific by the Southern
Pacific can be broken and set aside.
This done, the way will be clear for
the plan of organization, with the
two roads treated as one. 1t is
shown that even in the first year Of
the panic the net earnings were
about 81, 500, 900, sufficient to pay 5
per cent on 5 l00,000,000 bonds, and
leaves $2,5O0,000 for distribution
among shareholders. III this show
ing can be made with the Central
Pacific, worked solely for the profit
of the Southern Pacific, conse-
quently starved by deprivation OF
it's rightful source of income, 1t is
argued that with the two roads
worked in harmony the enormous
traffic that would Immediately pass
over them would increase their
earnings to figures equal to, il not
in excess Of, those OF their most
prosperous days.
1t is pointed out that under the
proposed consolidation the int rest
of the eastern trunk lines centeriDg
dJ oLudud, Will no ob OhSO SoIhCu,
and it is suggested that If an open
proposition were made by the gov
eminent to lease or sell the COM
bined system to that trunk line or
combination of capitalists which
would pay to the government the
largest amount on the combined in
debtedness of the two roads above
q minimum figure, cit is suggested
S75,000,000, there would be strong
competition to secure control.
This plan as outlined by the
Observation-Disclosures has been pro-
nounced feasible by high officials
of the Union Pacific. In Cali
fornia, especially, has the project
been strongly Endorsed within the
narrow circle of those to whom 1t
could be submitted in confidence
prior to the publication OF the re-
port. A bill has already been
drawn by one Of the government
directors to carry out the object
sought,and will be submitted to the
secretary Of the interior, the secre-
tary Of the treasury and the at
torney general for approval. Ii
favored by them, it will be intro
duced early in the coming session