The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1897-12-09

UNION PACIFIC RAILROAD.

The Union Pacific Railroad main line
was sold under the decree of the United
States court for the district of Nebraska
on the first of November, this year. The
amount due the government consisted of
the principal of the subsidiary bonds.
sd .23G512; and the accrued interest
thereon. $31 .211.711.7 making the total
Indebtedness sos. 44S.223.I5. The bid at
the sale covered the first mortgage lien
and the entire mortgage claim of the gov
eminent principal and interest.
The sale of the subsidized portion of
the Kansas Pacific line, on which the gov
eminent holds second mortgage lien. has
been postponed at the instance of the gov
eminent to December rs. 1897. The
debt of this division of the Union Pacific
Railroad to the government on November
/. 1897. was the principal of the subsidia
ry bonds. S6,303,00O, and the unpaid and
accrued interest thereon. S6.626.6N.33.
making total of S12,929, 690.33, The
sale of this road was originally adj
vertiscd for November, but for thepurposc
of securing the utmost public notice of
the event it was postponed until Deceni-
her 16 and second advertisement Ct
the sale was made. BY the decree at
the court the upset price of the sale
OF the Kansas Pacific will yield to the
government S2,50O,O0 over all prior liens,
costs and charges. If no other or het-
tcc bid is made this sum is all that the
government will receive on its claim OF
nearly S13,000.00O. The government
has no information as to whether there
will he other bids. The question Is,
therefore, whether the government
shall. under the authority given by the
act of March 3, 1887, purchase or re,
deem the road in the event that II bid
is not made by private parties covering
the entire government claim. 10 quail
ify the government to bid ut the sale
it will require deposit of S90O,OOO as
follows: In the government case, $780,
600, and in each of the first mortgage
cases. 100000. and in the latter the de-
post must be in cash. Payments at the
sale are as follows: Upon the accept
ance of the bid sum which, with the
amount already deposited, shall equal
Is per cent of the bid, the balance in
installments of % per cent, thirty, forty
and fifty days after the confirmation
of the sale.
The lien on the Kansas Pacific prior
to that of the government on the 10th
of July, 1897 principal and interest,
amounted to S7,2S1, 44S.11. The govern
! mcnt. therefore, should it become the
highest bidder. will have to pay the
amount of the first mortgage lien. o-
! | believe that under the act of 1881
1t has the authority TO 40 TINS, anu IL
absence of any action by congress l
shall direct the secretary of the treas
| ury to make the necessary deposit us
! decreed by the courts to qualify as Il
bidder and to bid at the sale Il sum
which will at least equal the principal
on the debt due to the government, but
suggest in order to remove all contro-
versy that an amendment of the law
! be Immediately passed explicitly giving
such powers and appropriating in gen
era terms whatever sum is sufficient
| therefor.
In so important matter as the gov
errment becoming the owner of railroad
property which it perforce must CON
duct and operate. l feel constrained to
lay before congress these facts for its
consideration and action before the
consummation of the sale. 1t is clear
to my mind that the government should
, not permit the property to be sold at y
price which will yield less than one-half
of the principal of it's debt and one-1fth
of its entire debt. But whether the
, government, rather than accept less
than it's claim, should become bidder
and thereby the owner of the property
| submit to congress for action.