The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-10-26
THE UNION PACIFIC SALE.
THE GoTERNME " WANTS. IT POST
PONED UNTIL CONGRESS CONTENES.
u Hone. TO act = better BId Than Tint or the
RcorEnniEntIon committee. or to Escnpc
the ncsponsibiIity Of Making N Settlement.

{" AltAls NIlN wv ~ w. ' ~
Pacific Reorganization had been re.
ccivcd here, Attorncy.Gcneral Mex cnna this
afternoon admitted TINT the Government
would ask n postponcmcnt OF the sale Of tho
Union parilc Railroad property.
"Ex.Gov. lluadly and Mr.. Cowan of Omaha,
special counsel for the United states in tho fore.
closure litigation" he said, were instructed
last week to make the application, and the mem.
hers Of the Reorganization Committee wcro
notified Of the intention of the Governments"
when will the application he madc3'
Probably tomorrow. Gov. Hondly is now
on his way TO st. Paul. and will appear before
Judge Sanborn. who issued the decree of sale,
asking that tho date be postponed until Dec.
49,"
what was tho reason for tho action of tho
Administrations
THE fact that it had received assurances
that II the sale were post poncd until that day n
bid would be made for the property equal to tho
full amount Of the Government debt, about
$50. OOO. 900"
From whom do these assurances Gomez
Excuse me-; on that point l do not care to
speak"
do these assurances relate to bids from
more than one sourcei'
81 can give no information as to that"
The Attorney. General, evidently. was very
we'll pleased with the prospects. II think" ho
said. that we are getting along pretty well.
According to the statement of the Rcorganiza-
ton Committee they are willing TO bid up to tho
fun amount Of the Governments debt on tho
main liuc rather than to have a postponcmcnt
of tho sale OF that portion OF tho road. As to
the Kansas Pacific branch, they say they have
no objection To II rOstponcncnt. At present
they Urc ready 20 add eight or nine millions to
the amount Of their guaranteed bid for tho
property which had previously been raised
about 81, 900, 900 above the original sum pro.
posed"
The announcement OF the Union Pacific Re
organization Committee referred to above is as
follows:
The Attorncyticneral has notified this COM
mittcc that he proposes to ask the Court for an
adjournment of the foreclosure sales of the Union
Pacific and Kansas Pacific Railway properties
to Dec. -, SO as to postpone final disposition
until after Congress shall have met. This action
is no doubt taken TO free the Administration
from Embarrassment
The Reorganization Committee has. how
ever. reached the conclusion that the interests
Of the security holders. represented by it, and
of the syndicate furnishing the funds to finance
tho reorganization demand reorganization
without any further delay. In this situation
the committee contcmplates. so as to gain
promp, possession OF the Union Pacific line. to
oppose any adjournment of the sale Of the main
line. and TO bid it in II need be for the full
amount of the Government claim. tho addi-
tiOnal sum involved in this being about SIS, $780,
600.
As to the Kansas lines. tho foreclosure OF
the first liens upon the subsidized divisions of
the Kansas Pacific Railway will be ehcrgetically
pressed, and when these foreclosures shall have
Ksmsas iines viii be compietef as pianned I' Inc
"Allotmcn's madc under the plan to Kansas
Pacific security holders and amounting to about
Sl5.ooo.4O 900 in new bonds and s2O;oOO.0O0 in
preferred stock. will remain reserved for the re.
organization OF the Kansas lines.
The amount of ne" first mcrtg GO bonds to
be issued for the purposes OF the reorganization
OF the Union Pacific main line will not exceed
10000 900. and OF pre- erred stock $4,000. 900.
No change in the plsn Of rcorsaniZ ,tion is in
volvcd in the fore DING"
a member of The committee supplemented its
formal statement with the following interview:
The foreclosure sale of the lniun Pacific Road
cannot he postponed now, It is not possible
! be paid Off, the committee being willing to bid
- 5000 900 more. thus rendering tn" full amount
No reason remains Tor 2 rostponcmcnt OF me
sale. AS for the Kansas Pacific property. II the
committee the Government can take over the
|"fknow nothing about the reported existence
OF any other syndicate that intends to bid for
the property. No interest which intended to
make a bid would be apt to go to the news,
papers TO tell all about 1t beforehand. II has
been reported to me that two checks for e.. 900.
600 each were certified by two local banks last
whom such Checks could represent" ''' VI
Con. Louis Fitzgerald, Chairman OF the Iteor
Ranisation Committee. has gone West on hust
ness other than that OF the Union Pacific, but
foreclosure saleIat Omaha Nov.2. MIR. Krech. sec
From other sources it is learned that the Reor
EAniZation mmit received
several days ago that the Government wa,
with the committee and it has been making
preparations to meet such an emergency. The
any ordinary compc ition at the sale, but
until a week Hgo 1t did not suspect that
guarantee to the full amount of the unpaid bal
anse of the United states subsidy r PGs
it is asserted, IL what yesterdays nc
lion of tie Acknowledgement means, Fol
nvorting the postponement OF the sale, the en-
tire subject vii! go back to Congress. which ha
is unable to agree upon any plan for the adjust
ment or settlement of the Union Pacific deb
III the in GHcsG"m 1be clc It %ns l Hami G,TsTanft%"f {,
make the original contract " It'll The Rcorganiza
tion Committee, md it evidently had weigh
with the present Administrntion or it would no
have virtually accepted that contract as it's OWL
by, seeking and securing a modification of IT,. i,
does, the interests OF the holders of tn
curitics which are held by investors through
N'A~ h'A& ''H
ing the credit OF American railways botl
here and abroad, that INSTRUMENTATION Com
mittee has evidently determined to comply will
the eNRctions of the Government. Moreover
the committee. relying upon the. good faitl
oil tho Government, has carried its re
organization programme to a point wher
II is practically impossible to ABANDON It
Am ny other things it deposited several month
forrcitur, fund OF 81 100000. which It can
not Withdraw. and which would certa My b
forfeited should the committee fail 10 carr;
out its part Of the contract. IL has collected a.
the various classes of Union Pacific securi
ties, has arranged for settlements will
creditors. and has negotiated valuabl
trNMc alliances, Including the acquis
ton OF connecting limos. Tho only thin
for the committee to do Is to increase the fxe(
charges OF the rcOrganiZed company by tn
amount of interests that will have to BIO pal
upon whatever amount OF new bonds will have
be issued 10 satisfy the Government lien in full
and by doing 80 prevent a postponement OF tn
sale.
The most interesting question that will probs
bly, ne raised before Judge Sanhorn at y
Paul when the motion 10 postpone the sal
is argued will DO whether the Goyernmer
will accent the proposition of the lteorgaI
ization Committee relative to tho. Un'o
Pacific main line and DO content with tho pos
pOnoment nj the sules OF the Kansas paCif