Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1897-12-06
ARCHAEOLOGICAL RECOMMEN-
DATIDN
PACIFIC RAILROADS SALE.
Special Attention at Congress inNitSd u
Government Railroad Ownership


Government Railroad Ownership
The Union Pacific railway, main line,
was sold under the decree of the United
states court for the district of Nebras-
ka on the first and second OF NoNeih-
Der. this year The amount uue w
government consisted OF the PRINT
pal of the subsidy bonds, S212db,5i2'
and the accrued interest thereon, SOL
2llTl1.T5, making the total lndepteu-
ness S5S,iiS 223.i5. The bid at the sale
covered the first mortgage lien ana the
entire mortgage claim OF the govern
ment tlcss INTEREST,".
The sale of the subsidized portion of
the Kansas Pacific line upon when the
government holds second mortgage
lien has been postponed at the m
stance Of the government 10 December
lG, 1897. The debt of this division OF
the Union Pacific railroad to the gov
eminent November 81. 1887, was the
principal of the subsidy bonds Sb'3O3,-
OOUand the unpaid and accrued Interest
SC. 1879. 69O.SS, making total OF Sl2'929'-
690.33.
The sale of this road was originally
advertised for November 4th. For the
purpose Of securing the most public
notice of the event It was postponed
until December 10th, and second ad-
vertisement of the sale was made. 10y
the decree Of the court the Upset price
of the sale of the Kansas Pacific Will
Weld to the government the sum of
$500, 600 over all prior liens costs and
charges If another or better bid Is
made this sum is all that the govern
ment will receive on It's claim of nearly
S13000,000.
The government has no information
as to whether there viii he other bid
ders or another hid than the maximum
amount herein stated. The question
therefore Is whether the COVER ment
shall under the authority given 1t by
the act of March %, 1894 purchase or
redeem the road In the event that bid
is not made by private parties cover
ing the entire government claim. To
qualify the government TO bid at the
sales win require a deposit Of $780,.
Is as follows:
In the government cause 100000 and
in each Of the first mortgage causes
100000. and in the latter the deposit
must be in cash. Payment at the sale
| Is as follows
Upon the acceptance Of the bid n sum
which with the amount already dc
| posted shall equal fifteen per cent Of
| the hid the balance In installments
OF twenty-five per cont, thirty; forty
and fifty days after the confirmation OF
! the sale. The lion ON the Kansas Pa
on the Goth of July. 1897 principal and
| interest amounted TO S7i2i,0sS1l.
WILL THE GOVERNMENT BUY?
The government, therefore. should It
become the highest bidder, Will have
to pay the amount Of the first mort
gnge lien / believe that under the
| act OF 1857 II has the authority to do
| this. and in the absence Of any action
| by Congress. ! shall direct the secre-
| tary of the treasury 10 make the neces-
! sary deposit MS required by the courts
| decree to qualify as bidder and to
| bid at the sale sum which viii at
! least equal the principal Of the debt
/ due the government, but suggest in
| order to remove nh controversy that
an amendment Of tho law he immedi-
utely passed explicitly giving such
powers ana npprOpriatiug I'm general
terms whatever sum is sufficient there
{ for.
In 50 important Rmatter as the gov
| 'rnment becoming the probable owner
! of railroad property, which II perforce
must conduct 0rd operate, I feel con-
strained to lay before Congress these
| facts for fits consideration and act be-
| fore the contamination Of the sale.
| II Is clear to my mind thnt the gov
rrnment should not permit the prop
! ortv to be sold 9t q uriuc which win
Yield lcss than ouo-hnlf Of the prin-
| t.' sr '- HHNt n0H 'aes thon one
| ffth Of It's dcht, principal and inter
! est. Tho government rather than ac-
1 ceut less than its claim should become
| . bidder and thereby the owner of the
! property, and / submit this TO Con-
Lress for action.