Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1897-12-11
THE PACIFIC RAILWAYS.
should Government BeeOme BiddeR
for the Iknnsns Pncifcf

The Union Pacific railway, main line,
was sold under the decree of the United
States court for the district of Nebraska
on the lst and I'd of November of this year,
The amount due the government consisted
of the principal of the subsidy bonds, ST.
2S6 ,5l2 and the accrued interest thereon,
3l,2ll, 71l75, making the total Indebtedness
s en and an the
gage, claim of the government. principal
and interest
Kansas Pacific line, upon which the gov
ernment holds second mortgage len,
has been postponed at the Instance of the
government to December l6, 1897. The debt
of this division of the Union Pacific railway
to the government on November l, 1891
was the principal of the subsidy bonds,
Sc, $685. ,OOO and the unpaid and accrued in.
terest thereon. ere *S,S26Gso,SS 80, making total
orsiasy SdSertsed s for Sove@ber n ea sGa Sa
for the purpose OF securing the utmost
public noIice Of the event It was postponed
tisement of the sale was made. BY tns
decree of the court the upset price on the
the government the sum OF s., SOC, 600 over
all prior liens, costs and charges. II no
all that the government will receive on ita
claim of nearly $l3.OOO,OOn The government
has no Information as to whether there
will be other bidders or a better bid than
| the minimum amount herein stated. The
question presented therefore is whether
given It by the act of March 3. 1881. purchase
or, redeem the road in the event that q
Dlu IL MOI indue ny private parties covering
the entire government claim.
To qualify the government to bid at the
sales VIII require deposit OF SyUU,UUU, aa
follows: In the government cause $5UU,UUU,
and in each of the first mortgage causes
100000. and in the latter the deposit must
follows: Upon the acceptance OF the bid,
sum which with the amount already
deposited shall equal l5 per cent. of ths
bid; the balance In instaIlments of rs per
cent, ~ 40 and 5O days after the confirma.
tion of the sale. The lien on the Hsnsaa
Pacific prior TO that of the government
| on the 3Uth of July, 1897, principal an( inter-
est amounted to T,2Sl .04S.l ii. The govern
ment, therefore, should 1t become the high
est bidder, Will haye to pay the amount OF
| the first mortgage lien. believe that under
the act of 1887 II has the authority to do
| this, and In absence OF any action by con-
gress, l shall direct the secretary of the
| treasury TO make the necessary deposit az
| required by the courts decree to qualify
| as bidder and to bid at the sale sum
| which will at least equal the principal OF
| the debt due the government; but suggest.
| in order to remove all controversy, that an
amendment of the law be Immediately
passed explicitly giving such powers and
appropriating In general terms whatever
sum is sufficient therefor.
In so important matter as the gov
| ernment becoming the possible owner of
railroad property which IT perforce must
conduct and operate, i feel constrained to
| lay before congress those facts for ita
consideration and action before the con-
mind that the government should not per-
init the property to be'sold at a price which
| will yield less than one-half OF the prin-
| cipal of its debt, and less than one-fifth OF
Its entire debt. principal and interest.
But whether the government, rather than
accept less than its claim, should become q
bidder, and thereby the owner of the prop
| erty. / submit to the congress for action