Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-10-27
The Administration Pleased Over the
Outcome Of Negotiations.
NOT TROUBLED OVER KANSAS PACIFIC
Government Would Bid It in if
Necessary.
A GREAT ACHIEV ENT


McKenna Secretary Gage and every mem
ber of the administration is today con-
graduating himself on the outcome of the
arrangements for the sale of the Union Pa
cif1c and Kansas Pacific. They openly
state that the insinuations which are being
made will fall fiat, and that those who are
making them will be the ones to regret
their work.
Attorney General McKenna today official
ly announced that the sale of the Union
Pacific proper will take place, according
to the original decree, on the 1st and I'd
Of November, and that the sale Of the
Kansas Pacific will be postponed until De-
cemher 10. OF course, application for a
postponement of the sale of the Kansas
Pacific is yet to be made, but as there will
be no opposition to the postponement the
court will grant the motion.
The Committees Latest Bid.
The reorganization committee yesterday
proposed to the government that If 1t
would not ask for postponement Of the
sale of the Union Pacific the committee
would bid the full amount of the govern
ments claim on the road. The committee
guaranteed that it would do this at the
same time consenting to q postponement of
the sale of the Kansas Pacific, and notify
withdraw its guarantee as to a bid on the
Kansas Pacific. The Attorney General,
however, did not consent to q withdrawal
of the original guarantee on the Kansas
Pacific.
The amount which the committee guaran-
tees to bid for the Union Pacific is s5s,O67.-
3:'S. This includes the principal of the
debt. which amounts to s27, 236, 512, and the
balance of the interest paid by the United
States, amounting to So. $50, $50. This is
the full amount of the Union Pacific obi-
cations to the government.
The Kansas Pacific Debt.
The debt of the Kansas Pacific to the
government aggregates ST., ,9O6,272 of which
Sj3GS, 800 is principal and s6,59S,272 interest.
The government could indefinitely postpone
the sale of his road, but it has desire
to put the sale off longer than December
10, at which time it is fully satisfied that
there will be bidders.
Attorney General Mckenna said today
regarding the newspaper stories that the
sale of the Kansas Pacific would lose the
government more money than under the
S3oHtl,UD guarantee of the reorganization
committee covering that road: Il have no
more doubt that the government will real
iZe the full amount of its claim on the Kan
Pacific than | have that l am sitting
here. The talk about the future owners of
the Union Pacific being able to cripple the
Kansas Pacific by paralleing it is all bosh.
The Kansas Pacific is one of the best roads
in the country
From President Mckinley down the ad-
ministration officials say that the govern
ment will get every dollar of it's claim on
both roads, which is about s25.OO0OOO more
than the original guarantee made by the
organization committee to the last adminis-
tration. The administration feels that it
has saved that much money to the treas
ury and openly says So
Another fact which kills the stories of
the government being defrauded in the
Kansas Pacific is that there were separate
DEGREES for the sale of the Union and Kan
saS PacifcS. The Kansas Pacific decree
provided for the sale of that road on No
vember 3. and 5. The decree further pro-
Vided that an upset price of $12, 800 900 the
amount of first mortgage and government
principal must be bid or there would be no
sale OF the road. The government will see
that the road brings sufficient to cover
every dollar coming to it.
Would Bid in the Road.
The Attorney General said today that un-
der the act of 1887 the government had a
full right to bid the road in for the amount
due it. and the intimation is broad that be-
fore the road will be sacrificed to ANYBODY
the government will become a bidder 1t
will bid only far as its claim goes as
that is as far the law will permit. It is
believed that the President and ATTORNEY
General have come to a full understanding
on this score, and that the government
stands ready to become the owner of the
Kansas Pacific before it will permit itself
to lose one cent. But the government has
no idea that it will have to do So 1t knows
that the interests of the REORGANIZATION
committee in the Kansas Pacific are too
great to permit the government or anv nri
Fate concern to own the road.
Another feature presents itself If tba
government feels disposed to take advan-
tage OF It, That is to the liability of the
reorganization committee to withdraw from
Its guarantee as to the Kansas Pacific. The
Attorney General refuses to discuss this
feature. because he is satisfied that there
viii not be occasion to bring the oues-
tion up.
other bidders for X, p.
The reorganization committee is deeply
interested In the Kansas Pacific 1t has
an interest in nearly all the first. third and
fourth securities. For that reason it is
sure to be a bidder. But the government
has assurances that there will be other
bidders. Capitalists have been organizing
in London to bid on the properties, and ty
december 10 will have time to complete
their organization. London dispatches
hoWever, indicate the belief there that the
let any concern out5.G it on the Kansas
Pacific or the Union Pacific
Attorney General Mckenna does not
!hlnk the government would have been
JUSTIFIED In postponng the sale of the Union
Pacific after 1t had secured all that was
coming to it. 70 have delayed the sale
fs'Snt nave resulted diSa StrOuSlV in many
ways.
A Great Financial Achievement.
Speaking about the entire transaction n
cabinet officer. who is fully posted on tine
matter, said today that the sale was one
of the greatest financial achievements that
has been accomplished in many years. The
governments action throughout has been
clear a crystal. and credit was NOT
only due to this administration but to tho
last one, for its successful completion For
one year every one has known that the
property was to be sold, and the talk and
clamor that delay should bs had nou to
give other syndicates chance 10 bid. was
baseless and unwarrantabis. The sale is
st!ll an open one. and those who had the
same chance as the REORGANIZATION com.
ry,ittee to raise the purchase moa.y dnrin,
tha last year have Tho same chance toisv
The sale Is not being made by the govern
n.ent, but by the court. Having gone into
the courts. the matter went entirely out Of |
it's hands. and even Congress could NOT .le-
lay the sale by any action it might take
The decree ordering the sale was issued !
by a United States judge, and he alone
Cpfili order bo