The silver lance., 1897-08-06
UNION PACIFIC SALE.
DECREE OF FORECLOSURE EN-
TERED.


TERED.
WiIlIa m ID. Cornish, Special MASTER TO Oon-
duct the Sale How the Payments .or
the Property Are to Be Made-hecer
ers Ordered to Flo Statement OF tno
Condition of the Road.
Omaha, Neb., July 29.-Decrees OF
sale of the Union Pacific railway un
der the foreclosure proceedings lnsu
tuted against it by the United states,
were passed upon by Judge waiteI
Sanborn in the United States court
here this morning. There were no op-
jections to the entrance of the Ames-
Dexter decree and after few correc
tions had been made In the prlnteu
copy of the decree, it was passed upon
by the court The entrance OF the gov
eminent decree drew forth vigorous
debate between Ex-Governor Hoadiey'
special counsel for the United states,
and Winslow S. Pierce, counsel Ior tne
reorganization committee. The deDate
was upon the right of the court to re-
serve to the United States all rights
of the government not expressly stat
ed In the decree. 1t was declded III
favor of the government.
The upset price under the f1rst mort
gage will be $50, ,632. .455. Judge VIII
liam D. Cornish of st. Paul will act as
special master in the matter He will
sell the main line, the 1,O34 miles OF
road from Council Bluffs to Ogden, and
its immediate branches in this city:
The date of sale will not be hxed unui
twenty days shall have expired, the
court giving that much time to the Un-
ion Pacific Railroad Company to re-
deem the property. The date OF SAFE
tad
sale will be fixed by Judge Cornish.
Similar DEGREES were entered in Coun-
Gil Bluffs this afternoon. and later in
the states Of Wyoming, Colorado, Utah
and Kansas.
The entrance of the DEGREES Of sale
drew together an assemblage OF as
many prominent judges, attorneys and
counsellOrs as ever met in Omahn-
Judge SanbOrn sat on the bench with
Judge Munger and passed on the de-
crees. The government was represent
ed by Ex-Governor Hoadley of Ohio.
now of New York City, and by General
John C. Cowen of this city; Winslow s.
Pierce of New York City, said to have
evolved the scheme of reorganization
of the Union Pacific, with Lawrence
Greer. looked after the interests of the
Dexter-Ames trustees of the Union Pa
city, associated with Mr.. Pierce, was
also on hand. Three of the receivers
of the Union Pacific system were in at
tendance, Oliver w. Mink, John w.
Doane and E. Ellery Anderson.
1t was after 1 o'clock when the for
malities were completed Judge Mum
ger adjourned court. The attorneys
In the case spent another hour correct
ing the copies of the decree to conform
to the changes made by the court, and
the papers were then filed. The decree
for the first mortgage bondholders COW
ers forty-four printed pages. 1t re-
cites the history Of the road, with the
several acts of Congress governing the
same, the issue of the different series
of bonds and the litigation leading up
to the suit for foreclosure.
1t is then decreed and ordered that
all the property and rights of the COM
pany shall be sold at auction to the
highest bidder, upon the mortgaged
premises at the freight station of the
railroad company in the city of Oma-
ha, on a date to be fixed by the special
master. A notice of the sale is ordered
published at least once a week for four
successive weeks in at least one news
paper in New York City, Boston, Oma-
ha, Denver, Cheyenne and Salt Lake
City.
The receivers of the road are ordered
to file within ten days of the entering
of this decree an approximate state
men. Of the amount of money in their
hands. the amount of moneys due them
and all their liabilities due from the
operation of the mortgaged premises.
The decree appoints William L. Cor
nish as special master to make the sale
and he is given power to postpone the
sale from day to day If circumstances
require Prospective bidders are re-
Quested to deposit with the master. five
days previous TO the sale the sum of
100000 and the successful bidders
must deposit within five days after the
sale sum equal to IL per cent. of the
bid as pledge that he will make his
bid good. No bid will he accepted for
less amount than SJ0.GS1, ,435.
The purchaser must pay for the prop-
erty in cash or in cash and first mort
gage bonds. and the amount remaining
after the application of the two depos-
its must be paid as follows:
Twenty-Five per cent. within thirty
days after the confirmation Of the sale:
p per cent. in forty days; % per cent
in fifty days and % per cent in sixty
days Payments may be made in bonds
at the value of principal and interest
due.
The money received from the sale is
to be used first. for the payment of the
nrst mortgage bonds. and second. if
there be surplus. to the payment of
any debt due the government. The pur-
chaser pays all costs of the case. the ex-
penses of the sale. compensation of the
master. balance due the receivers on
salary and unpaid Indebtedness of the
receivers incurred during the manage
ment OF the property. The decree in IA
vor Of the United States is similar in
form to the one for the first mortgage
bondholders- except that it provides for
a sale of the property subject to the
prior liens represented in the other de-
cree.
1t provides for double sale. to-wit:
The subsidy bonds of so. .235.512 with