Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1897-12-16
THE PACIFIC RAILWAYS.
should Government become bidder
for the LAnnsns PnciiicI

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 "a Of November Of this year
The amount due the government consisted
236. 5l2. and the accrued interest thereon,
$3l 2u.ll "a. making the total indebtedness
$5S,44S,22o.75 The bid at the sale covered
the first mortgage lien and the entire mort.
gage claim Of the government principal
The sale OF the subsidized portion OF the
Kansas Pacific line. upon which the gov
eminent holds second mortgage Zen,
has been postponed al the instance of the
government TO December 10. 1897. The debt
OF this division of the Union Pacific railway
to the government on November /, 1897
$6.30S,OUO, and he unpaid and accrued in.
terest thereon, $6,626.GsO 33. making a total
of Sl2,92yt9O 80. The sale of this road was
originally advertised for November a. but
for the purpose of securing the utmost
public notice OF the event ii was postponed
until December l6 and a second adver-
decree of The court the upset price on the
sale of the Kansas Pacific Will yield 20
all prior liens, costs and charges IL no
other or better bid Is made this sum Is
claim of nearly $lS, 0OU, 900. The Eovernmenf
has no Information as 10 whether there
will be Other bidders on a better bid than
the ~ MIN nm amount herein stated The
question presented therefore is whether
the government shall under the authority
given IL by the act of March g. iAS7 purcha CO
or redeem the road in the event thai q
bid is not made BY private parties covering
the entire government claim
To qualify the government TO bid at the
sales Will require deposit OF SyUU,UOU as
follows: In the government cause $5UU,OOC,
and in each OF the first mortgage causes
$2U0,OUO and In the latter the deposit must
be in cash. Payment al the sale IS as
aoiloMs' 4 Ron the acceptance OF the bid.
deposited shall equal Is per cent. OF the
BID the balance In Instruments of rs per
cent, 80 40 and 50 days after the confirti1a-
tion of the sale The lien on the Kansas
on the S0th OF July 1870, principal and int =
est amounted to S7,2Sl GAS IL. The Cover NJ
ment, therefore. should il become the high
est bidder. VIII have TO pay the amount OF
the act of 1887 II has the authority To do
this, and In absence of any action by con-
gress, | shall direct the secretary or the
treasury 10 make the necessary deposit as
required by the courts decree TO qualify
as bidder and to bid at the sale a sum
which VIII at least equal the principal of
the debt due the government; but suggest
In order TO remove ali controversy, that n
amendment OF the law be Immediately
passed exp1clty giving such powers and
appropriating - general terms whatever
sum is sufficient therefor.
In so important matter as the gov
eminent becoming the possible owner OF
railroad property which Il perforce must
conduct and operate, | feel constrained to
lay before congress those facts for its
consideration and action before the con-
summation of the sale. II is clear to my
mind that the government should not per-
nit the property TO be sold at price which
will yield less than one-half Of the prin-
cipal Of its debt and less than one-tifth Of
It's entire debt, principal and interest.
accept less than its claim should become a
bidder and thereby the owner OF the prop
crty. ] submit to the congress for action.