Audubon County journal. (Exira, Iowa) 1884-1993, 1897-11-04
UNION PACIFIC SOLD.
GOVERNMENT CLOSES OUT ITS LIEN
ON THE OVERLAND.
Great Auction Sale Was Attended by ABB
solutely No Sensational Events-General
Lewis Fitzgerald, Chairman of Reorsan-
ization Committee, Bids sos, OG5, 1000.

OMAHA, Nov. 2.-The foreclosure sale
of the governments lien on the Union
Pacific railway took place at the Union
Pacific freight house in this city yes
terday shortly before noon. The gov
ernment's interests in the railway was
purchased by General Louis Fitzgerald
of New York City, chairman of the
Union Pacific reorganization committee,
and Alvin w. Krech, secretary, as pur.
chasing trustees, for these amounts of
money, 500, sS3, 1881. 81, bid for the rail
road property; S13,645, 250.S9, bid fol
the bonds, and $4,539,2l6, the amount
in the sinking fund, aggregating $685.
065, 1929.
Although it was the greatest auction
sale ever held in this country, perhaps
in the world, it was attended by abso-
lutely no sensational or even exciting
scenes. As had long been anticipated,
no bidders appeared against the reor-
ganization committees representatives.
The governments claim in full has
been generally stated as amounting to
$57,62O,2S9. Taking the principal Of
the sinking fund bonds outstanding on
July 80, 1897, as $3,73S, 900, and the un-
paid coupons thereon at their face
value, Ss9S, 400, as shown in the decree
of the United States circuit court, the
amounts bid for the property, for the
bonds plus the sinking fund, do not
equal the full amount Of the govern
ment's claim. 1t is stated by the Off
Gals connected with the sale, however,
that the full amount of the government
claim was bid. The explanation is said
to lie in the fact of additional interest
since the DEGREES were entered in the
federal court.
Regarding the future of the road,
Secretary Millar said: "The actual
turning over of the property to the pur-
chaser will be at some time in the fut-
ure. have known instances where
railroads have been bought by reorganl-
cation committees, and as these COM
mittees have not been entirely prepared
to assume control of the railroad at
once, the receivers have been allowed
to run the road for two or three months,
under the direction of the owners. The
receivers will handle the road until the
committee is ready to assume formal
control of it,
OMAHA, Nov. S.-The foreclosure sale
of the first mortgage bonds of the Union
Pacific railway took place at the COM
pany's freight house in this city just be-
fore the shop whistles sounded the noon
hour. The reorganization committee
bid in everything covered by the first
mortgage for the sum of $50, ,435,
the minimum amount announced in the
decree of the federal court ordering the
sale. The sale was of all the railroad,
telegraph, franchises, rights, rolling
stock and property of every kind and
description mentioned in the DEGREES
entered here on July 30, 1897.
The sale completes the foreclosure
sale Of the union division of the Union
Pacific railway, and after the sale of
the governments interest held yester-
day, and the sale of the property COW
cred by the first mortgage bonds have
been confirmed by the court arrange
ments will be made for turning over the
property to the reorganization commit
tee. Until the road is turned over to
its purchasers it will be managed under
the direction of the receivers. 1t is
commonly believed in railway circles
that the reorganization committee will
take possession of the property on Dec.
!. 1898,