People's Pilot, Volume 5, Number 35, Rensselaer, Jasper County, 5 March 1896 — FOR PACIFIC ROADS. [ARTICLE]

FOR PACIFIC ROADS.

Mr. Morrison Outlines a Proposition to the House Committee. Washington, March 3. —The housecommittee on Pacific railroads gave a hearing Monday to L. J. Morrison of New York, the attorney for holders of about $5,000,000 of Union Pacific firstmortgage bonds. The plan he outlines proposes to provide funds for the satisfaction of the first and second mortgages by issues of bonds based on the present rates of earnings of the roads, for which the junior interest would be compelled to subscribe. Three commissioners would be appointed by the president, who would obtain decrees of foreclosure on the Central and Union Pacific and purchase the roads in trust for a company or companies, to consist of the present creditors and stockholders, who subscribe to the plan and issue new mortgage bonds bearing a lower rate of interest than their prior liens and based on the earnings of the companies, the new issues to include the amounts of the .first-mortgage bonds and the sum secured by the government liens. Mr. Morrison thought he could guarantee that responsible parties would agree to carry out this plan, which would require $167,000,000 of bonds. He also declared that the hand of the Vanderbilts was to be seen in the present proceedings.