The Roanoke times. (Roanoke, Va.) 1897-1977, 1897-10-27
THE UNION PACIFIC SALE.
The Attorney General Will Ask
That it be Postponed.

New YORK, Oct. 26.-The Union Pacific
reorganization committee has made the
following announcement:
"The attorney general has notified this
committee that he proposes TO ask the
court for an adjournment of the foreclos.
ure sale of the Kansas. Pacific end Union
Pacific railroa property to December Is,
so as to postpone final disposition until
after Congress shall have'met.
This action is no doubt taken to free
the administration from embarrassment.
The reorganization committee has, how
ever, reached the conclusion that the in
,erest of the security. holders represented
by 1t, end the syndicate furnishing the
funds to finance the Reorganization, de-
mand reorganizatio without any fur
Their delay. In this situation, the COM
mittee contemplates, so as TO gain
prompt possession of the Union Pacific
line, to oppose any adjournment of the
sale OF the main line, and to bid Il in, IL
need be, for the full amount of the gov
ernment's claim. the additional sum in
volved in this being eight million dollars.
"a s to the Kanses lines, the foreclosure
of the first liens upon the subsidized di-
visions of the Kansas Pacific railway
will be energeticalIy pressed, and when
these foreclosures shall have been accom-
plished the reorganization of the Kansas
Pacific lines will be plett d us claimed.
"Allotments made under the plans to
Kansas Pacific holders and amounting to
about fifteen million dollars in new bonds
and twenty millions i'll preferred stock,
will remain reserved for the reorea aiza-
ton of the Kansas line. The amount of
new f1rst mortgage bonds TO be issued for
the purpose of organization of the Union
Pacific main line will not exceed seventy
Low. xlA1l
fifty five million dollars.
mo change in the plan Of reoreaniza-
tion is involved in the foregoing"
Washington, Oct. 2S.-Attorney Gen
eral Mckenna was shown the above stat. =
ment and was asked if be had notified the
committee OF his intention as stated to
which he replied that he had; that Gov
ernor Hoadley, special counsel of the
government in the case, was directed la st
week to make the communication to the
reorganization committee. He also said
that the application would he made to
j ddee Sanb3rn, at ST. Paul. for the post
ponement of the sale, not of the main
line only, Int Of the Kansas division
lines. He further stated that the govern
ment had been very attentive to the sta
alton and very DESTROYS to have the sale
open to all bidders-one that could not
he complained of and for that reason de-
sired the postponement to enable bidders
to prepare, and had reasonable assurances
that there would be bidders other than
the reorganization committee at the sale
The attorney general declines to state
what other PROPOSE tions had been received
or by whom made, but it is certain that
the sum expected to be realized, is consid-
erably in excess of the guarantee offer of
the reorganization committee. That
guarantee, the attorney general said, re-
mains In full force, notwithstanding the
postponement of the sale.
No serious opposition to the consum-
nation of the sale ON the part of Con.
gress is anticipated by the department.