The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-10-26
Attorney General McKenna An
pOnement Until Dec. 10.
NEW BIDDERS ARE EXPECTED
AND THE GOVERNMENT MAY REAL
IZE MORE ON ITS BIG CLAIM.
OFFER of the Reorganization Commit
tee Raised Several Millions
"Axmano BristOv's Report.
Special to the indianapolis Journal.

Special to the Indianapolis Journal
WASHINGTON, Oct. 25-Five hours att
er Wall street had the news Attorney Gen.
eral McKenna announced this afternoon
that the government would apply to the
courts for an order postponing the sale OF
the Union Pacific until Dec. 10. He stated
that he had given Governor Hoadly instruc-
tions last week to make the application on
behalf of the government At the same
time the reorganization committee was no
tilted of the impending action, and it was
in the hope of effecting change In the
mind of the administration that Mr. Wins
low S. Pierce came down to Washington
on Saturday last. Attorney General Nc
Kenna explains that the postponement will
be asked for in order to give everybody
chance to get in shape to bid for the prop
erty, that the United States may obtain as
much money as possible from the sale. 1t
is learned that at the conference in this
city Saturday afternoon Attorney Pierce
pledged the reorganization committee to
increase it's bid $S,000.000. To-day the re-
organization committee raised that amount
to $12000,000 increase over the $5O,OOO,OOO
amount bid. This sum, according to the
committee calculation, covers the entire
amount of the government claim. Com
puters of the Treasury Department make
the total $40 900 900. If the committee intends
to make good the entire amount of the gov
ernment claim it will have to increase its
$12 000 600 proposition another $S,OOOOOO. The
prospect is not attractive, and the commit
tee will contest the governments applica-
ton.
One reason given for the refusal of the
President and the attorney general to ac-
cept Mr.. Pierce's offer on Saturday is that
engage in any more star chamber deals,
and that anything done hereafter must be
in the open. The government holds $780,
900 of the reorganization committees cash
as forfeit on the $5O,O0O0O0 contract, and
there is no danger Of the committee going
back on that part of its bargain The at
torney general is well satisfied that the
government is not jeopardized by post
poning this sale until after Congress meets,
and 1t is clearly the purpose of the admin
istration to head off adverse criticism
which might be heaped on it if proof could
be given that there would be competition
for the property if time could be given cap
italists to organize opposition syndicates
1t is problematical whether the government
will actually obtain more than $50 900, 900 at
the foreclosure sale. 1t all depends wheth-
er there is real competition organizing If
the alleged SyndicateS hdtten out the reor-
ganization committee will not be bound to
make good any proposition which may have
been rejected by the government.
Attorney General McKenna was asked
this afternoon if he had notified the reor-
gan1zation committee of his intention to
seek postponement of the SALE He re-
Piled that he had; that Ex-Governor Hoad-
iy, special counsel for the government in
the case was directed last week to make
the communication to the reorganization
committee. He also said that application
would be made to Judge Sanborn. at st.
Paui, Tor the postponement of the sale, not
OF the main line only, but of the Kansas
| division lines. He further said that the
government had been very attentive to the
situat ton and very desirous to have sale
| open to all bidderS-one that could not be
complained of-and for that reason desired
| the postponement to enable bidders to pre-
| pare, and had reasonable assurances that
there would be bidders other than the re-
| organiza ton committee at the sale The
| attorney general declined to state what 9th
! er propositions had been received, or by
whom made, but it is certain that the sum
| expected to be realized is considerably in
| excess or the guarantee offer of the reor-
| ganization committee That guarantee the
| attorney general said, remains in full force
| Notwithstanding the postponement of the
| sale. No serious opposition to the consum-
maticn of the sale on the part of Congress
| is anticipated by the department