The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-03-14

the Union and Kansas Pacific should
be sold together. Mr.. Mink took posi-
tive ground against government owner
ship of the road.
Mr.. S. II. H. Clark, one of the re-
ceivers, was examined as to the Union
Pacific connections at the Missouri
river and said the road had closer re-
lations with the Chicago & Northwest
ern than with any other line. He knew
of no reasons for the fact that the
Northwestern influence was especially
strong in the reorganization plan, and
asserted that he did not know Hon.
Chauncey NJ. Depew. Mr.. Clark was
pressed to make a suggestion as TO the
best settlement to the government, and
after first declining he consented to
the extent of saying that he would
take the principal and scale the inter
est. He thought it better that it should
be in cash.
Mr.. Clark positively said that the
road was paying no rebates, and that
it was not in politics.
Mr. Mink said in reply to questions
by Mr. Wolcott that the receivers had
paid some interest on the debts of
the branch lines; that the earnings
from the parent road had been thus
diverted to hold the system intact.
They had not expected the receivership
to continue so long and had now dis
continued the plan. He said that S116.-
600 had been paid in this way on &C
count of the Omaha bride which might
have otherwise been devoted TO the
payment of the first mortgage interest.
The first mortgage coupons for July,
1895. and for January, 1896. were in de-
fault, but he thought they would soon
be paid. There was, however, no ul-
terror purpose looking to reorganization
in the failure to pay the interest. The
receivers always had borne in mind
the Importance of keeping the interest
account up. They first had believed
that the earnings would be sufficient TO
meet the interest and to hold all col
lateral lines. They had. however, soon
discovered that this was impossible
and had early lost the Denver & Gulf
and the Oregon Short Line He
thought there could be no question that
the main line would always be able
to meet it's interest; the danger would
come when the principal should fall
due. He thought there was no doubt
that in the future these first mortgage
bonds would be paid so as to protect
the government interest on the main
line. He could not promise so much
for the Pacific line, in which interest
amounting to about S750,000 is now due,
line was in the courts and the case was
greatly complicated. The first mort
gage bondholders had made no appli-
cation for interest, but he did not think
this failure on their part was part
of the scheme to secure a. reorganiza-
ton. He thought that on the contrary
it was due to the complicated condi-
ton of the affairs of the line.
Mr. Wolcott next directed his efforts
to show that Russell Sage and George
Gould, who were the trustees for the
consolidated mortgage of the Kansas
Pacific line, had prevented the pay
ment of the first mortgage interest,
but Mr.. Mink hesitated to reply 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
there was a cloud upon the action of
the receivers, trustees and counsel in
and full explanation. He said there
was but one mind in the management
of the entire system, and that the di-
visions were merely technical.
To this Mr.. Mink replied that it had
been the constant aim of the receivers
to meet the interest on the first mort
gage bonds, but that the disasters of
1870 adllQ 1854 HdQ necessarily CHdHgeQ
their plans somewhat, and it should
be remembered that when the receiv-
ers took hold of the road that it's cof-
fers were almost empty. He admitted
that there was a close traffic agree
ment between the Union Pacific and
the Chicago & Northwestern lines.
Mr.. Clark said the entire Union Pa
cif1c line of 1,S22 miles had cost an
average of 100000 per mile, and it could
be duplicated for about half that
amount at the present time.
When Mr. Clark concluded, Chair
man Gear announced an executive
meeting of the committee for Monday,
when it will be decided whether any
more hearings will be necessary.
Northern Pacific Reorganization.
NEW YORK. March 1S.-The latest
reports in regard to the impending re-
organization plan of the Northern Pa