The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-10-20
THE UNION PAcIFIc,s DEBT.
directors Recommend Foreclosure
Against the Main Line.

Washington City, Oct. 1e-The report OF
the government directors Of the Union Pa
CHIC has been made to the secretary OF the
interior. They recommend the following
as a OASIS OF settlement OF the debt to be
accomplished by congressional legislation:
The attorney general shall. Immediately
atter the maturity of any portion OF the
deot due 20 the United States from the
mon Pa9ifc Railroad Company or the
Central Pacific Railroad Company. instl-
tute proceedings for protection and fore
closure Of the lien of the United States
from Omaha to Ogden. and similar pro-
ceedinss for the line from Ogden TO Sacra-
mento and thence TO San Jose. The secre-
tary OF the treasury shall have power 10
pay, settle and adjust all amounts due or
10 become due for principal and interest
which is secured by liens prior to the liens
OF the United States. including the power
to take assignments OF any foreclosure de-
crees under such prior liens: IL necessary,
the entire property 10 be sold TO such cor
poratlon or purchasing committee as will
agree 10 refund the entire amount adj
vanced by the government. II no com
mittee or corporation shall bid the mini
mum price fixed by congress. IL shall be
the duty TO report to the next session of
congress The purchasing committee or
corporation shall have power TO complete
the construction from Sacramento 20 Ash
land. but shall not be allowed 10 consoli
date with other transcontinental lines. Tn
I'll a purchasing committee is found. con-
troll OF the properties shall be IN the hands
of the courts having jurisdiction OF the
foreclosure proceedings OF the government
liens.
Tho board says that the fixing OF the
minimum price Of the roads would be at
tended with some difficulty. but free nego-
tiation with all tho competitors DESTROYS
Of bidding would soon Develop the limits Of
the price 10 be obtained. They believe
that such a scheme would realize a better
return 20 the United States than could be
reached through any funding bill or extern
sion Of the present indebtedness. Portions
OF the government debt OF both roads viii
mature early in 1896.
The board thus sums up the situation Of
the roads: Standing 10 the credit OF the
Central Pacific and Union Pacific in its
sinking funds October /, 1895. 81 .ss5, 095: In
sinking fund 10 the credit OF the trustees
OF the Central Pacific mortgage, a lien
which IL prior 20 the lien OF the United
States, as stated in the report Of 1894
S. 400. 2i4, amount or prior bonds OF the
Union Pacific Railroad Company and Cen
trail Pacific Railway Company exclusive
OF the Kansas Pacific railway, s55s47. 900;
amount required 20 complete payment Of
the Omaha bridge bonds. 100000. The
cash balance in the hands or the Union
Pacific receivers applicable 70 the Union
Pacific property probably VIII be approx
matsly sufficient 20 meet the arrears Of IN
terest accruing on its prior bonds.
The interest OF the Central Pacific PRIOR
bonds is paid up TO date. The board says
that. therefore. the entire gross amount
of prior liens 81 the Union Pacific and the
Central Pacific. exclusive Of the Kansas
Pacific. less the amounts stated held in
the sinking funds. viii he $50 961. $50, The
amount which may be required TO dis
charge or purchase the prior liens Il La
hle TO be increased II the above mentioned
sums IN the sinking funds Of the United
States under decisions Of the secretary Of
the treasury and the attorney general
should not he available for the purpose
indicated. The hoard says that II congress
should hN the price which IL IS willing 70
receive in satisfaction Of It's claims a a
sum which should meet the approval Of an
intending purchaser the entire transac-
ton could he so arranged between The con-
tractfng parties as TO avoid the necessity
for any expenditure OF moneys in the
treasury FOR the purpose OF taking up
prior liens. The board suggests that the
secretary obtain from the bond committee
n fun statement OF the lands remaining N
their hands and as to the property of the
companies.