The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-03-14
PACIFIC RAILROADS COMMITTEE
MIR. Mink is Questioned Regarding His
knowledge of Affair.".

knowledge or AFFAIR.".
Washington. March BIN tie Pa
cific railroad hearing today Mr.. Mink
said in reply to questions by Mr.. VOL
colt that the receivers had paid some
interest on the debts of the Union Pa
cific branch lines; that the earnings
from the parent road had been thus di-
verted to hold the system intact They
had not expected the receiVership to
continue so long and had now discon-
tnued. He said that $4,000 had been
paid in this way on the account of the
Kansas Pacific road and $4,000 on &C
count Of the Omaha bridge which might
have otherwise been devoted to the pay
ment of the first mortgage interest. The
first mortgage coupons for July, 1893,
and for January, 1896, were in default
but he thought they would soon be paid.
There was. however. no Interior purpose
looking TO reorganization, in the failure
TO pay this interest The receivers al
ways had borne in mind the Importance
of keeping the interest account up. They
first had believed that the earning
would be sufficient to meet the interest
and 10 hold all collateral lines. They
had. however. soon discovered that this
was impossible and had early lost the
Denver and the Oregon Short Line. He
thought there could be no question that
the main line would always be able 10
meet its intereSt:the danger would come
when the principal should fall due. He
thought that there was no doubt that
I'm the future the first mortgage bonds
would be paid so a 10 protect the gov
eminent on the main line. He could
not promise SO much for the Pacific line.
I'm which interSt amounting TO Sl5o,0OO
Is now due, none having been paid since
1894. This line was in the courts and
the case was greatly complicated. The
first mortgage bondholders had made
no application for interest but he did not
think this failure on their part was 4
part Of the scheme 10 secure reOrg2n-
ization He thought that on the con-
trary it WAS due 10 the complicated con-
dition Of the affairs of the line
Nj WOlcott next directed his efforts
TO show that Russell Sage and George
Gould. who are the trustees for the con-
Solidated mortgage Of the Kansas Pa
citic line, had prevented the payment Of
the first mortgage interest. but Mr.. Mink
hesitated 10 rerly TO these questions,
saying they involved legal questions
With which he was not familiar
Senator Brice, Of the committee. here
Interposed to say that it was apparent
that there was a cloud upon the action
OF me receivers. trustees anu NOuilSCi III
this matter. and 10 call for a full and
frank explanation. He said there was
but one mind in the management Of the
entire system and that the divisions
were merely technical
To this Mr.. Mink replied that ii had
been the constant aim Of the receivers
- meet the interest on the first mortgage
bonds. but that the disasters Of 1898 and
1895 had necessarily changed their plans
somewhat. and il should be remember
el that when the receivers took hold Of
the road In 1898 its Golfers were almost
empty. He admitted that there was j
close traffic agreement between the
Union Pacific and the Chicago and
Northwestern lines
Mr.. Clark said The entire Union Pa
cine line OF l.>22 miles had cost an aver
age - S6N.oto per mile. and ii could be
duplicated for about half that amount
al the present time
When Mr.. Clark concluded. Chairman
Gear announced an executive meeting
q the committee for Monday. when il
VIII te decided whether any more. hear
ing will h. uac.SSs- ~