Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-03-13
Union Pacific Management De-
scribed to Senators.
RECEIVER OLIVER MINK A WITNESS
lntimation Of the Influence of Gould
and Sage.
STATISTICS

resumed its sitting today, devoting Itself to
the Union Pacific. Mr. Oliver W. Mink,
one Of he receivers of that road, Vas the
first witness called. He was Intercepted
by Senator Wolcott, and said there were in
cluded in the Union Pacific system about
5000 miles Of road, of which about 1,I30
miles were government aided road, and
about 1872 which belong to the Union Pa
cific Company. For these 1,S22 miles the
gross earnings had been for the twenty-six
months since the road came into the hands
of receivers So. ss2, $50. and the operating
expenses 81, 179, 233. He said that in this
time the company had paid s.. JO5, 1865 in in
terest on debts secured, especially upon the
company's lands, of which It held 3,347 600
acres.
Course of the Receivers.
Mr.. Mink said. in reply to questions by
Mr.. Wolcott, that the receivers had paid
some interest OIL the debts of the branch
lines; that the earnings from the parent
read had been thus diverted to hold the
system intact. They had not expected the
receivership to continue so long and had
now discontinued the plan. He said that
$4,000 had been paid in this way on ac-
count of the Kansas Pacific road and $1.O-
Ooo on account of the Omaha bridge which
might otherwise have been devoted to the
payment Of the first mortgage interest He
stated the first mortgage coupons for July,
lSto, and for January, 1886, were in de-
fault, but he thought they would soon he
paid. There was, however. no Interior pur-
pose looking to the reorganization in the
failure to pay this interest The receivers
always had borne in mind the importane G
OF Keeping the interest account I'D They 1T
first had believed that the earnings world
be SUFFICIENT to meet the interest and to
hold all collateral lines. They mad. how
ever soon discovered that this was impos-
sibie. and had early lost the Denver and
CUR and the Oregon Short Line.
Principal Difficult to Meet.
+ He thought there could be no question
that the main line would always be able to
meet its interest; the danger would come
when the principal should fall due. He
thougft there was no doubt that in the
future these first mortgage bonds would be
PAID 50 as to protect the government in
terest In the main line. He could not prom
Use so much for the Pacific line. on which
interest amounting to about $75UOaO is now
que, none having been paid since 1894. This
line was in the courts and the case was
sreaIIy complicated. The first mortgage
bondholders had made no applica ton for
interest, but he did not think this failure
on thelr part was part of SC heme to Sc
cure reorganization. He thought that, on
, .me Contrary IT was entirely due to the COM
pncated condition of the affairs of the line
+. Mr.. Mink said that Judge John F. Dillon
vas enc of the trustees of the first
mortgage bondholders and was also counsel
Tor the Union Pacific receivers Senator
Stewart asked If this double relationship
was not anomalous, but Mr. Mink said he
mad thought very little about it.
Gould and Sage.
Mr.. Wclcott then directed his efforts to
show that Russell Sage and George Gould,
who ara the trustees for the consolidated
mortgage on the Kansas Pacific lire, had
prevented the payment Of the first
mortgage interest. but Mr. Mink hesi-
tated to reply to these questions, saying
they involved legal questions with which
he was not familiar.
Senator Brice of the committee here in
terposed to say that it was apparent that
there was cloud upon the action of the
receivers, trustees and counsel in this
matter, and to call for a full and frank
explanation. He said that there was but
one mind in the management of the entire
system and that tine divisions were merely
technical.
To this Mr.. Mink replied that it had been
the constant ann of the receivers to meet
the interest on the first mortgage bonds
but that the disasters of '93 and '94 had
necessarily changed their plans somewhat
and it should be remembered that when the
receivers took hold Of the road in 1888
it's Golfers were almost empty.
He admitted that there was a close
traffic agreement between the Union Pa
cifc. and the Chicago and Northwestern
lines.