The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-11-02
UNION PACIFIC PURCHASED BY RE-
ORGANIZATION COMMITTEE.
There Was but One Bid, and the 500
People Who Attended the Auction
Found the Event Unfnteresting.
PROTEST FROM Mr.. TRUMBULL
AGAINST, INCLUDING TWO MILES OF
DISPUTED TRACK IN THE SALE.


Receivers to Continue I'm Charge of
the Company for the Present-S. III.
H. Clark Likely to BE President.
OMAHA, Neb., Nov. 1.-The interest of
the United States government in the Union
Pacific Railroad terminated at 11:45 o'clock
this morning when, at the foreclosure sale
of the mortgage held by the United States,
the road was purchased by the committee
Of Eastern capitalists formed for its reor-
ganization. The full amount accruing to the
United States from the sale cannot be given
exactly, but is estimated to be sos, O65 49,
1t impossible to determine the full
amount at the time of sale for the reason
that the monthly statement made by the
secretary of the treasury to the manage
ment Of the Union Pacific on the first of
every month was not available to-day, and
it was found necessary to estimate some
items, although it is admitted by both sides
that the estimates are approximately cor
rect. The amount due the government is
made up as follows:
Principal of debt ...............$2 7 236 512. 90
Interest paid by the government
up to Sept. 3d. 1897. 30 $780, 81
Interest accrued by Sept. 80 and
Interest accrued in October....... 95,3S2.56
Total due the government. $500. SIS, 44S92 S41
Against this are the following credits:
Cash and bonds in sinking fund. SIS, IS2 1866 SO
Estimated credits for the quar-
ter ending Sept 80 and for the
month of October including
government earnings and the
interest on bonds in the sinh
ing fund, amount not yet cred-
1ted .............. .-................ So4,loUA
Total credit ....................s SIS $50 64O.74
Total debt Of the railroad to the
Total credit Of railroad with
government ......... ............. lo,0o9o 4o.t4
Balance and amount bid by
reorganization committee 49,. $3y, o6S 2Sl.6l
The sinking fund bonds sold for. l3,6io 20OS9
Total bids by reorganization
committee ...... .................> >oSozo ooz.fo
The amount earned by the road during
in the quarter ended Sept. 80 and during the
month of October is estimated, but is prac-
tically correct, and as the government will
simply retain the cash, crediting the amount
on the bids of the committee, the amount to
be turned over as a consequence of the sale
IS SIS, 065, 74S.40.
WILL MAKE UP ANY DIFFERENCE.
After the sale was concluded, General
Gown, the representative of the govern
ment was assured by the committee that if
the amounts were not accurately figured
or should differ from the figures given
above. whatever may be lacking will be
paid by the committee and will in no way
be allowed to interfere with the confirma-
ton of the SALE There was no opposition to
the committee and no bids We're offered
against theirs.
The sale Of the road was ia itself one
of the most tame and uninteresting per-
formances possible to imagine. The crowd,
which was not over 500 all told, was packed
so closely around the doorway and and up
In front of the center of the bulletin that
the members Of the reorganization commit
tee the men who came out to buy the road,
were unable to see anything or hear word
of what was going on. The sale was adj
vertised to take place in front of the Union
Pacific freight house, at the junction of
Ninth and Jones streets, at IL o'clock, and
It was just one minute after that time
when Master in Chancery Cornish, who
was to act as auctioneer, took his place on
the low stone step in front Of the Ninth
street entrance to begin the sale For over
half an hour a crowd had been gathering
to witness the sale and it was only with
great difficulty that Mr.. Cornish was able
to get sufficient room to enable him to
work He finally jammed himself back into
the corner of the doorway with one Shout
der against the door and the other against
the brick wall and prepared for business.
Mr.. Cornish carried under his arm a large
PORTFOLIO bound with the regulation red
tape and as soon the crowd gave INN
room to extend his arms he united the
string and drew forth number of papers.
Selecting one of them he replaced the
others and holding ii out. said: Gentlemen,
am here to sell certain railroad proper
ties in pursuance of decree of the United
States Circuit Court. 1 will now read the
description of the property to be sold and
when l have finished the reading l will be
prepared to receive bids
NOTICE OF SALE READ.
Mr. Cornish then unfolded the notice of
the sale, which was very long, being about
four columns of agate type. This notice is
so long, gentlemen said Mr.. Cornish,
that 1 will not attempt to read it SO that
all you can hear it. will endeavor to get
through it as rapidly as possible" Close to
his left hand stood Lawrence Greer with
a copy of the notice in his hand and he
followed the reading of the master in
chancery very closely. He was the only
member of the reorganization committee or
those connected with it who saw the pro-
ceedings from first to last.
The reading of the notice took just an
even forty minutes and when it was evident
that Mr. Cornish was well through the last
column of the notice General Louis Fitz-
gerald. who was to make the bids pushed
through the door and stood close to the
side of the reader. AS he finished his read
ing Mr.. Cornish folded up the paper and
placed it deliberately in his portfolio. He
then drew forth a small typewriter docu-
ment and without announcing its nature,
began to read. 1t was a protest from Man
Official fac-simile of Medal Awarded