The record-union., 1897-01-23

essary, because the receivers in charge
of the property are made parties de-
fendant They are original bills and
not cross bills in the pending suits.
Whether they will proceed as independ-
ent bills or be ordered to stand as
cross bills in the pending suits will
be determined by the Judge.
But in either event the result will be
practically the sams---the sale of the
property under the Government lien as
well as under that of the first mort
gage.
The bills will be filed IN the districts
of Iowa, Nebraska, Wyoming, Colo
RADIO and Utah. Separate bills for fore
closure of the lien ON the Kansas Pa
citic are i'm course of preparation These
were filed in Missouri and Kansas.
The proposed arrangement was SUBJ
mitted to the Government directors be-
fore it was closed. They will recon-
mend it's adoption.
The general opinion was thus eX-
pressed: THE Government cannot pru-
IDENTIFY longer defer the settlement Of
this matter The Union Pacific system
has already been much curtailed and
it's revenues have been permanently
reduced. ReorganiZations of allied and
neighboring properties have either been
accomplished Or are in train for early
consummation, and the breaking up OF
the entire Union Pacific system has
been and is steadily progressing.
1T, Therefore, seems to us inexpedi-
ent if not dangerous to neglect this op-
portunity of realizing the sum offered
and thus expose the Government to a
continuous depreciation of it's securi-
ties. 1t is believed that there will be
higher bids, but if not an estimate
shows that, crediting the amounts al
ready received from the company, the
Government will at least realize sum
equivalent to the principal of the sub
sidy bonds with interest at about 312 per
cent. from their issue to the average
date of their maturity, or about 3.4o
per cent from the date of issue to Janu-
ary /, 1897.
'The minimum of S45, ,154, 900 guaran-
teed the Government is in cash, so that
all relation with the property Will ter
inmate upon the confirmation of the
foreclosure sale"
THE SENATE PLAN.
WASHINGTON, Jan. 22.-The Senate
Committee on Pacific Railroads to-day
favorably reported the bill introduced
by Chairman Gear, providing for the
appointment of a committee consisting
of the Secretary of the Treasury, the
Secretary of the Interior and the Attor-
ney-General to settle the indebtedness
of the Pacific railroads.
STATEMENT OF THE u. 2. REOR-
ORGANIZATION COMMITTEE.
NEW YORK, Jan. 22.-The following
statement by the reorganization COM
mittee of the Union Pacific Railway
Company was made here to-day:
The Union Pacific Reorganization
Committee has come to an agreement
with the Government in accordance
with which the latter has begun fore
closure proceedings of it's lien upon the
Union Pacific lines, inclusive of the
Kansas Pacific line. The reorganization
committee guarantees minimum bid of
something over $40, 100000 for the Gov
ernment's claim upon the railroad, and
for the Government Union Pacific sink
ing fund, and has deposited 81 1000, 600
as earnest money. Kuehn, Loeb Il Co.,
bankers for the reorganization commit
tee, har assured the committee the
funds re,.. ired to carry its agreement
with the Government into effect.
BY the terms of the settlement the
Government will receive the original
amount of the 6 per cent. bonds issued
by it and of the Union Pacific, less pay
ments made by the company to the
with int AT the rate
of 31a per cent per annum.
The detailed statement of the debt of
the Union Pacific made on October l,
1896. was as follows: Principal, ST.
236, ,512; interest accrued and not paid,
S343 74S; interest paid by the United
States. SAG, ,094, ,544; repaid by the
Union Pacific. $15, ,9SS ,035; balance of
interest paid by the United States, $50
105. 100; principal of Kansas Pacific
debt, Sc, 800, 900; interest on Kansas Pa
cific debt, Sc, ,493, ,S43.
The principal of the debt by the fore
going figures amounted on October lst,
to S33, 539. .512, and interest to S36 ,944.-
800. while both together amounted to
$40, ,4S3. .S12.
The sinking fund created for the pay
ment of the Government debt now
amounts to something over Sli i,OoO,UDO,
and it is chiefly in Government railroad
bonds. This fund is to be retained by
the syndicate formed to provide funds
to pay off the Government debt and to
carry out the reorganization plans. The
net to be paid to the Government is,
therefore, S2S.000,000
TWO SWINDLERS ARRESTED.