Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1896-02-13
PACIFIC ROAD BONDS.
Senators Wolcott and Morgan ASK
Some Rather Pointea
Questions.

Washington. D. c.. Feb. S.-Ihe hear
inys by the Senate committee on Pacific
railroads of persons interested in seeur-
ing the reorganization of the roads was
resumed today. Mr. Pierce, representing
the Union Pacific reorganization commit
foe was again before the committee and
he was put through sharp process or
questioning by Senators Wolcott ana
Morgan. He, stated in reply to these
questions that 1t had been the purpose
of the committee on reorganization 10
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 ana
INTEREST,", which would not amount to
quite as much as the principal itself.
In reply to question from Senator
Wolcott Mr.. Pierce said that while
Messrs Depew and Hewitt were on the
reorganization committee he could not
say whether the Goulds and Vandcrbilts
were intei ested in the proposed reor-
ganization, or that there was any ul-
terror purpose to attach any portion OF
the Union Pacific system to either the
Missouri Pacific or the Northwestern.
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
accented it was contemplated that the
reorganization committee should itselt
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
accrrod interest to run fifty years with
out interest.
Mr.. Anderson. one of the government
directors of the road. said that as Il gov
eminent director he was the advocate
of no particular plan of reorganization.
He favored reorganization which
should embrace both the Union Pacific
and the Central Pacific, and he was
confident from 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.OOO,O00 or $S0,00O,0O0. In 1894 the
net earnings were about S4,3O0,O 600,
which he stated were the lowest in years.
TO arrive ut the value of the govern
ment lien it is necessary to deduct about
$50.OOO,OOO due on first mortgage bonds
and on other accounts. He would. he
said. recommend that the government
should accept Il cash offer of S35 100000
and that it would be better TO do this
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 on: Of The system. He also ex-
pressed the oninion that foreclosure
on the first mortgaS- bonds would not
only close the government out but would
cut off the equity of redemption.