The Saint Paul globe., 1897-11-02
ROAD BID IN FOR FULL AMOUNT
OF THE GOVERNMENTS
CLAIM.
OVER FIFTY MILLIONS PAID.
ANY SHORTAGE TO BE MADE GOOD
BY THE REORGANIZATION
COMMITTEE.
SALE A ROUTINE PROCEEDING.
Only One Bid Submitted When Spe-
ciaI Master Cornish offered the
Property at Auction.

OMAHA, Neb., Nov. 1.-The interest
Of the United States government in the
Union Pacific railroad terminated at
11:45 o'clock this morning, when, at the
foreclosure sale of the mortgage held
by the United States, the road was
purchased by the committee of Eastern
capitalists formed for it's reorganiza-
tion. The full amount aceruing to the
United States from the sale cannot be
given exactly, but is estimated to be
$5S,O65, 748. 40. 1t was impossible to de-
termine the full amount at the time of
sale for the reason that the monthly
statement made by the secretary of
the treasury to the management of the
Union Pacific on the first of every
month was not available today, and it
was found necessary to estimate some
items, although it is admitted by both
sides that the estimates are approx
mately correct. The amount due to the
government is made up as follows:
Principal of debt, $27, ,236, ,512; interest
paid by the government up to Sept. 80,
1897, $50, $780, 1861; interest accrued by
Sept. 80 and still unpaid, 1886, 1880; in
terest accrued in October, $95, ,332 &c.
Total due the government, $5S, S,448, 92S 10.
Against this are the following credits:
Cash and bonds in sinking fund $18,-
1872 466. So. Estimated credits for the
week ended Sept 80 and for the month
of October, including government earn
ingS and the interest on bonds in the
sinking fund, amount not yet credited,
1884, 18021. Total credit, SIS, ,565, ,64O.74.
Total debt of the railroad to the gov
ernment, $58, AS, ,92861. Total credit of
railroad with government, SIS, $50, ,646.74.
Balance and amount bid by reorganiza-
ton committee, $39, ,SS3, ,2S1.S7. The sink
ing fund bonds sold for $13, ,645, $50. SO.
Total bids by reorganization commit
tee, $59, 52S, ,532.76.
The amount earned by the road dur
ing the quarter ended Sept. 80 and dur
ing the month OF October is estimated,
but is practically correct, and as the
government viii simply retain the cash,
credlting the amount on the bids of the
committee, the amount to be turned
over as a consequence of the sale is
$5S, ,O65, ,748.4O.
After the sale was concluded. Cen
Gown, as the representative of the
government, was assured by the COM
mittee that, if the amounts were not
accurately figured or should they diff
fer from the figures given above, what
ever may be lacking will be paid by
the committee and will in no Wav he
allowed to interfere with the confrma-
ton of the sale, There was no op-
position to the committee and no bids
were offered in opposition.
SALE UNINTERESTING
Ihe sale of the road was in itself one
OF the most uninteresting performances
possible to imagine. 1t was advertis-
ed to take place in front of the Union
Pacific freight house at the junction of
Ninth and Jones streets at II o'clock
and 1t was just one minute after that
time when Master in Chancery Cornish
VINO was to act as auctioneer. took his
place on the low stone step in front
OF the Ninth street entrance TO begin
the sale. For over half an hour 9
crowd had been gathering to witness
the sale, and it was only with great
dlfflculty that Mr.. Cornish was able to
get sufficient room to enable him to
work. He finally jammed himself back
into the corner of the doorway. with
one shoulder against the door and tbe
other against the brick wall and pre-
pared for business.
The crowd, which was not over 500
all told, was packed so closely around
the doorway and up in front of tbe
center of the building that the mem
bers of the reorganization committee
the men who came out to buy the road.
were unable to see anything or hear
a word Of what was going on. They
were compelled to stand back in the
hallway, from which ,one of them
would occasionally poke out his head
just TO see that all was we'll Packed
into the hall, leaning against the ban
nisters, squatting upon the stairs or
standing wearily in the center of the
floor, were all the members of the COM
mittee. Receiver Mink hied himself TO
an upper window, out of which he
leaned to watch the proceedings below.
Those of the committee and connected
with it present were: Receivers ]. w.
dcane, Ellery Anderson, Gen.
Louis Fitzgerald, of the reorganization
committee, and Winslow S. Pierce. the
attorney of the reorganization commit
tee, and the wizard who solved the
scheme of reorganization; Alexander
Miller, of Boston, secretary and assis-
tant comptroller of the company: Hon.
John Sheridan, of Maryland a director
of the railroad; Gen. Solicitor Kelly.
and Gen. Gown, the government rep
resentatives; Jacob Schiff. of Boston:
Marvin Hughitt, of Chicago; T. Jeffer
son Coolidge Jr., of Boston, and Law
renee Greer, his assistant
Mr.. Cornish carried under his arm,
a large portfolio bound with the regu
lation red tape, and as soon as the
crowd gave him room to extend his
arms, he united the strings and drew
forth a number of papers Selecting
one of these and holding it out. he
said: Gentlemen, 1 am here to sell
certain railroad properties in pursu
ance of a decree of the United States
circuit court. 1 will now read the de-
scription of the property to be sold
and when I have finished the reading I
will be prepared to receive bids"
FORMAL PROCEEDING
He then unfolded the notice of sale.
"a