The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-12-29
Want the Mortgages Foreclosed So
Make Uncle am Lose SI35.ooo,ooO.
HITCH In VENEZUELA TREATY
CONFERENCE BETWEEN OLNEY AND
SIR JULIAN PAUNCEFoTE.
New Phases May ProIong Negotia-
tiOns. but VIII Probably Not Ina
peril the Agreement.
Special to the indianapolis journal.

Special to the indianapolis Journal
WASHINGTON. Dec 2S-On the lst OF
January there will fall due at the Treasury
Department the sGm of $97l20o0 i'm Pacific
railroad subsidy bonds. and the amount
will be paid by the government. This will
make about Se50O0.O0O I'm all paid from the
treasury funds TO take up the bonded OBJ
legations OF the Central and Union Pacific
systems. leaving about $40OO0.O00 TO be
disbursed for the same account during the
next two years. The President. under the
authority conferred by the Thurman act
has the power at any time to step i'm and
foreclose these properties on the part OF
the government. and he has hinted that he
may do so i'm message. but Information
is obtained AT the White House and the
Department of Justice that he il not likely
to take hasty action pending a decision by
Congress on the funding bill now await
ing the disposition of the body. The fund
/ ing bills come up i'm the House for discus
sion on the eth and Sth of January. and
will probably pass that branch in some
form, only TO be hung up in the Senate
The Huntington lobby and the reorganiza-
ton committee of the Union Pacific are
apparently pressing these measures TO an
issue but the impression deepens that they
are not anxious To have them pass, but
that their real purpose is to drive the gov
ernment TO begin foreclosure proceedings.
The theory is (and IL is acquiesced i'm by
insiders i'm the confidence of those who ex-
pect to have control of those properties)
that the play of the manipulators who are
working behind the scenes is TO make the
record show that they tried hard TO induce
the government TO grant an extension and
failed; then the foreclosure can proceed,
and the properties be knocked down at auc-
ton at a price which will realize little or
nothing more than the first mortgage leav-
ing the government in the lurch for $685.
OOOOc0 principal and interest. Their law
yers have led them to believe that the law
which gives the government preference
over private creditors by continuing lien
on the properties after foreclosure will be
knocked out by the Supreme Court and
that they will run small risk by allowing
the liquidation TO take it's natural course
This is the view held by those VINO should
be best Informed as TO the inside facts.
The Evening Star says: The President
has had several conferences with the attor-
ney general. the secretary OF the interior
and the secretary of the treasury with a
view TO speedy action for the adjustment
of the obligations of the Pacific railroads
TO the government. Ii is said 10 be settled
that steps will shortly be taken for the
foreclosure of the governments mortgage
these roads unless Congress shall make
other provision for the settlement of the
question at its present session. With the
account already matured more than sl3-
100000 of the principal of the subsidy bonds
issued on behalf OF the Union Pacific lire
and more than s6.o00.000 OF similar bonds
issued in aid of the Central Pacific road
will have fallen due and been paid or must
be paid on or before the first OF January
next. Without any reference TO the appll-
cation of the sinking fund now I'm the treas
ury this state of affairs will. in the opin-
ion of the President. as stated In his an
| nual message. create such default on the
part of these companies TO the government
as will give il the right TO at once instI-
| tute proceedings 10 foreclose it's mortgage
lien. In addition to the above stated in
debtedness. maturing Jan. 1 next. there will
mature thereafter by Jan. J. 1899 the re-
| manning principal of such Subsidy bonds
! which must also be met by the govern
menL These aggregate about S4l. 600 000 oS
which $200OO.OO0 account of the
| Union Pacific and $21. 10000 account OF
| the Central Pacific Company"