Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1895-01-22
IMMENSE DEBT TO BE WIPED CUT
THE UNION PACIFIC FORECLOSURE
WOULD COST MILLIONS.
Great Loss for omnhs-Line Now
Hardly Merits the Name Transcon-
tinentaI-what WAS Once n Great
Railway system broken Up.


Thurston with number of other I'm
ion Pacific attorneys left for st. Louis
tonight to protect the interest OF the
receivers In 1.-THE foreclosure proceedings
to be instituted there tomorrow. Now
that the entire ACKNOWLEDGMENT of the
Overland" is about Ito be consum-
mated 1t is asserted at Union Pacific
headquarters that 1000 men have been
affected by the disintegration OF the
various branch lines. many OF whom
made this city their home when the
system was intact.
A Union Pacific official declared to-
day that the inference drawn that the
scheme OF foreclosure was originated
In order 10 hurry congressional legisla-
tion looking Ito the passage of the fund
ing bill was entirely erroneous, in view
of the fact that the Union Pacific board
was pronounced in its desire to pro-
tect the government del,t, which under
foreclosure would suffer greatly.
The Union Pacific is essentially an
Omaha road. Its interests are Omaha's
interests. and anything looking TO THE
segregation of the main lines will be
vigorously resisted by the people OF
Nebraska, The purpose OF the resolu-
tons introduced I'm the Colorado house
Is apparent, their design being to make
impossible reorganization, Tor Colorado
viii be benefited in this respect and
Omaha lose just that much through
such circumstances.
1.-THE bill in foreclosure is a oumber-
some piece of legal machinery" said
this official. and involves the entire
range of legal action. Could fore
closure have been resisted and the gov
eminent debt adjusted 1t would have
benefited the whole Western country.
What will occur under foreclosure Is a
matter Of conjecture No part OF the
government debt is due until 1895. In
asmuch as the act OF congress requires
the company to render preferential ser
vice and the government transportation
over the road amounts in each year to
n large sum OF money, more than
enough to pay interest on the govern
ment obligations, and the company Is
also required to pay 20 per cent Of Its
net earnings to the government, - be
applied on the debt the government
in any event is in no danger OF ultl-
mate loss"
Little Lcft of the Originnl Lines.
Since the Union Pacific was placed in
the hands or receivers It has gradually
been broken up by orders OF various
United States district courts until OF the
magnificent network of railway that
was operated AS one harmonious sys-
tenn at the time the bill was filed, little
IL left but the original lines from Oma-
ha to Ogden and from Kansas City to
Denver. Looping off branch after
branch the road has been stripped of
friendly connections until It now hardly
merits the name OF transcontinental.
First the Denver and Fort Worth line
was given to separate receivers. This
cut OFF the Southwest territory and
rendered the Julesburg cutoff useless
Then the Oregon railway and navi-
cation line, Oregon railroad and steam
boat was taken away, and the Union
Pacific was left without Independents
connections to San Francisco and other
coast points. Now a suit to lop off
the Oregon short line and Utah northern
branches Is In progress. and when this
is done the Union Pacific viii have a
line from Omaha to Ogden to handle
local business. but cut off by active
competition Of rivals from the Through
traffic so long controlled by II. iBut
the foreclosure will reach only this line
However, It is apparent that the road
will not Sell under the hammer for
more than the sum represented by the
first mortgage bonds, on which Dacem-
Der interest is due and defaulted, in
which case the interest. the govern
ment's claim, will be wiped out, It be-
ing secondary. 1t is thought, perhaps
hoped, by those Interested in the road
that It can be made apparent to the
members of congress that the general
government IL about Ito be deprived
OF any possibility Of securing any part
OF the debt OF millions owed 1t by the
Union Pacific corporation. then some
Immediate action will be taken to pass
n measure looking to the extension OF
.1.n.N IA V,f
cation of the company and refunding
" It's Indebtedness ON lines acceptable
TO interests now forcing the foreclos-
ure.
Stockholders Petition Congress.
Washington. d. c., Jan. 2l.-A petit
.lon from the stockholders OF the Union
Pacific railroad was prescribed today
Offering to assess its stockholders a
sum sufficient to pay all bonds which
have priority over the lien of the Unit
ed States in consideration Of an ex-
tension of the debt of the United States
for fifty years at 2 per cent. The petit
zion sets forth that part OF the debt
for which the government is respon-
sible, amounting TO S33,539,5l2. will ma
ture before the meeting of the Fifty
fourth congress-. They represent that
In consequence of the business depres-
sion there has been n marked falling
off In business. amounting TO 4S per cent
OF the gross earnings for the first .ten
months OF 1894 as compared with the
first ten months of 1898 and that this
has resulted in a failure to meet the
interest OF the bonds of various divi-
sions OF the road.
The propositions for changes IN the
Reilly bill which were submitted to the
house committee on Pacific railroads
by representatives of the Union Pacific
have been rejected. The vote taken in
committee today was unanimously
against adding any material amend
ments to the measure. which IA now
on the calendar OF the house. That pro-
posal upon which the Union Pacific
laid most stress. n reduction OF the
rated interest on the government debt
from to per cent. met with general
favor. Amendments TO meet the views
OF railroad receivers and shareholders
may be made when the bill IL before the
house. but foday's meeting was problb-
" the last important session of the
committee before the house takes up its
measure.
To strike the shaclles of dyspepsia
from a suffering people is part OF the
,,.t,vl,v nf Trirp'H lfrpara IA