The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-01-24
ureat Interest in the Company's
Proposed Reorganization.
NO HARMONY APPARENT
THE PLAN SUBMITTED MEETS
WITH HEAVY OPPOSITION.
Russell Sage Gives His Views-A
Modified Plan May Be Presented
"A Meeting of the Government
Directors-The Latest by Wire

New York, Jan. 23.-Scarcely second
in public Importance to the fact that
the government will shortly foreclose
on the lien on the Union Pacific sys-
TEN, is the prospect for the reorgan-
ization Of the company In no other
company have so many citizens Of the
United States been interested as bond
and stockholders and the widest con-
Germ is being shown in the plans OF
those having large interests in the
company and at once looked upon as
leaders in any movement to put the
system uDon its feet There are two
views in Wall street as to the proper
course to pursue and the time Whlch
will be required for reorganization
The leading interests are at odds. one
plan is now before the people Whlch
proposes reorganization Whlch SNAIL
cut off many branch lines and Junior
securities and assess stockholders $40
per share. To many holders of junior
securities it appears better treatment
should be accorded them. Foreign
holders of the first mortgage and the
preferred securities are in accord with
the present plan.
Some of the leading capitalists and
institutions here are opposed TO the
present plan and hope to see modl-
fed plan. It was suggested today that
an effort might possibly be made per-
haps by congress to prevent the fore
closure sale ordered by the president,
but how such objection could be made
was not explained. When the sale
comes off the syndicate will bid not
less than S45. 554. 600 for the government
lien or second mortgage on the Union
Pacific and Kansas Pacific lines and Tor
the sinking fund. 1t is not generally
understood that the syndicate VIII be
required to pay out the sum mentioned
for the sinking fund and other secur-
tiles will reduce the actual cash needed
to about SOS, 600, 0O0 The sum required
has been secured by the Kuhn, Loeb
& Co. syndicate, which favors the plan
of the Fitzgerald committee.
The views of the older interests in
the Union Pacific system, which in
clude several capitalists and trust COM
panies on the present situation, were
stated today by Russell Sage, who has
followed the Union Pacific from its
conception:
unless the government is interested
in the Union Pacific, which it may be,
I predict that the road will in the end
never pay any return to those who
advance the money to pay the govern |
ment lien. This is a decided statement, |
but it will be proven true by time. |
The competition will ruin the road un- !
less congress can stand by to aid, as
for instance in unfolding a 10000 mile |
law. for the Northwestern system can |
tap every station on the south side of |
the Union Pacific. leaving it only a |
narrow strip of country to live upon. |
''One fact should not be lost sight of |
and that is that thousands upon thou |
sands of our people have invested their !
savings in the junior securities of the !
system in the $60.000.000 of stock be-
cause the government was interested |
with them and would protect the prop
erty. They put it in the company as
others would put it in a savings bank.
They viii lose all they have and what
ever they might pay in to save it. if |
the government is completely disinter-
ested.
Now, this question is not settled
and is going over to the next admin
istration. We have had assurances
from the highest officials that the
government would contiue its protec-
ton, and unles it does so the company
may not be reorganized for years.
with the government in it, an as
sessment of 80 a share would be suf-
icient and the savings of tens of
thousands of people would be protect
ed"
The government directors of the
company met at 1 o'clock this after
noon. e. Ellery Anderson said that
the meeting was hardly more than
form Nothing stood in the way of
he added. as congress
could not take any action contrary to
the law of 1878