The enterprise. [volume] (Wellington, Ohio) 188?-1899, 1897-12-08
THE PACIFIC RAILWAYS.
should Government become N Bidder
for the Kansas Pacifice

The Union Pacific railway, main line,
was sold under the decree of the United
states court Il fSr q II ths District OF
The amount due the government consisted
Of the principal of the subsidy bonds, ST.
236,5l2, and the accrued interest thereon.
SIS, S,44S,22S75 The bid at the sale covered
the first mortgage lien and the entire mort.
gage claim Of the government. principal
and interest
Kansas Pacific line, upon which the gov
ernment holds second mortgage Len,
has been postponed at the instance of the
government to December l6. 1897. The debt
to the government on November l, 1897
was the principal Of the subsidy bonds,
$6,SOS,OUO and the unpaid and accrued in.
terest thereon, 6,626, ,6yU.33. making total
Of $l2,92y, ,690.3S The sale Of this road was
originally advertised for November 4, but
for the purpose. OF securing the utmost
public notice of the event 1t was postponed
tisement OF the sale was made. BY tine
decree of the court the upset price on the
sale OF the Kansas Pacific Will yield TO
the government the sum of 81, 100000 over
all prior liens, costs and charges. II no
other or better bid Is made this sum Is
all that the government will receive on its
claim of nearly $lS,OUO,OO0. The government
has no information as to whether there
will be other bidders or a better bid than
the minimum amount herein stated The
question presented therefore Is whether
the government shall under the authority
or redeem the road in the event that q
bid is not made by private parties covering
the entire government claim.
To qualify the government to bid at the
sales will require deposit OF $yOU,OUO. as
follows: In the government cause $5UV,UOp,
and In each of the first mortgage causes
$2OU,0OO, and In the latter the deposit must
be in cash. Payment at the sale is as
follows: Upon the acceptance OF the bid,
sum which with the amount already
deposited shall equal 10 per cent. Of the
cent, 30 40 and 50 days after the contirma-
tion of the sale. The lien on the Kansas
Pacific prior. to. that of the government
on the SOth Of July lS97, principal anC inter-
ment, therefore. should 1t become the high
est bidder, will have to pay the amount OF
the first mortgage lien. believe that under
the act of 1887 1t has the authority to do
this. and in absence of any action by con-
gress, | shall direct the secretary OF the
treasury TO make the necessary deposit as
required by the courts decree TO qualify
as a bidder and to bid at the sale a sum
which will at least equal the principal of
the debt due the government; but suggest,
in order to remove all controversy, that an
passed explicitly giving such powers and
appropriating In general terms whatever
sum is sufficient therefor.
In so important a matter as the gov
ernment becoming the possible owner OF
railroad property which It perforce must
conduct and operate, / feel constrained to
lay before congress those facts for its
consideration and action before the con-
summation OF the sale. 1t Is clear to my
mind that the government should not per-
init the property to be sold at a price which
will yield less than one-half OF the prin-
cipal OF its debt, and less than one-tifth OF
its entire debt principal and interest.
But whether the government, rather than
accept less than Its claim, should become a
bidder, and thereby the owner Of the props
erty. submit to the congress for action,