Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1896-02-12
PACIFIC ROAD BONDS.
Senators Wolcott and Morgan Ask
Some Rather Pointed
Questions.

Washington, d. c., Feb. S-Ihe hear
ings by the Senate committee on Pacific
railroads of persons interested in secur-
ing the reorganization of the roads was
resumed today. Mr.. Pierce, representing
the Union Pacific reorganization commit
tee, was again before the committee and
he was put through a sharp process of
questioning by Senators WoIcott and
Morgan. He stated in reply to these
questions that it had been the purpose
of the committee on reorganization to
leave considerable latitude to the gov
eminent, but said that the plan pro
posed would give the government about
so per cent. of it's debt (principal and
INTEREST,", which would not amount to
quite as much as the principal itself.
In reply to a question from Senator
Messrs. Depew and Hewitt were on the
reorganization committee he could not
say whether the Goulds and Vanderbilfs
were interested in the proposed reor
gtr'zaticn, or that there was any Ill
ter!cr pG1 pose to attach any portion of
the Union Pacific system to either the
MissoE-i Pacific or the North Western.
Mr.. Morgan pressed Mr. Pierce to know
whether it was not possible under the
reorganization proposed for an alien syn
dictate to get control of the road, to
which he replied that in case the pro-
posed plan of reorganization should be
accepted it was contemplated that the
reorganization committee should itself
take the property. He was doubtful
whether if alien purchasers should secure
the property they would be able under
the laws to hold it. He said that this
committee had made no definite PROPOSE
ton except that of 3 per cent. bonds for
the principal and of bonds to cover the
accrued interest to run fifty years with
out interest
Mr.. Anderson, one of the government
directors Of the road said that as a gov
eminent director he was the advocate
OF no particular plan of reorganization.
be favored a reorganization which
should embrace both the Union Pacific
and the Central Pacific, and he was
confident from a familiar knowledge of
the two roads that they were not able
to meet both the principal and interest
due the government. He estimated the
property of the road to be worth about
$75,00O,O0O or $80,000,O00 In 1894 the
net earnings were about 81 300. 600.
which he stated were the lowest in wears.
10 arrive at the value of the govern
ment lien 1T is necessary to deduct about
SoO.OOOOOO due on first mortgage bonds
and on other accounts. He would. he
said. recommend that the government
should accept a cash offer of S35. 600. 900
and that It would be better to do this
than TO enter into any of the other
schemes suggested. This suggestion was
based upon the Union Pacific alone, but
he thought that both the Union Pacific
and Central Pacific should be disposed
OF rs one line because they would bring
more in that way than if sold separately.
Mr.. Anderson expressed the opinion
that the Oregon Short line would be
foreclosed within six months and be
taken OUT Of the system. He also ex-
pressed the opinion that a foreclosure
on the first mortgage bonds would not
only close the government out but would
cut off the equity of redemption