The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-10-26
THE FORECLOSURE SALE
OF THE KANSAS PACIFIC ANB
UNION PACIFIC UNTIL
DEC. IS, AFTER CONGRESS MEETS
He So Notifies the Reorganization Committee
He Thinks the Road win Sell Consider
ably in Excess of the Guarantee
Offer of the Committee.

New York, Oct. 25.-The Union Pa
cific reorganization committee today
made the following announcements,
The Attorney-General has notified. this
comittee that he proposes to ask the
court for an adjournment of the fore
closure sale of the Kansas Pacific and
Union Pacific Railway property to De-
cember 10, so as to postpone final dispo-
sition until after Congress shall have
met. This action is no doubt taken to
free the administration from embarrass-
ment 81
The reorganization committee, how
lever. reached the conclusion that the in
terest of the security holders, repre-
sented by it, and of the syndicate fur
nishing the funds to finance the reor-
lganizatiOn, demand reorganization with
cut any further delay. In this situation,
the committee contemplates, so as to
gain prompt possession of the Union
Pacific line, to oppose any adjournment
of the sale of the main line, and to bid
1t in, If need be, for the full amount OF
the government claim, the additional
sum involved in this being SS,000,00O.
AS to the Kansas lines, the foreclosurs
of the first liens upon the subsidized di-
visions of the Kansas Pacific Railway
viii be energetically pressed and when
these foreclosures shall have been ac-
complshed the reorganization of the
Kansas Pacific lines will be completed
as claimed.
Allotments made under the plans to
Kansas Pacific holders and amounting to
about S15, 100000 in new bonds and
$20,000.000 in preferred stock, will re-
main reserved for the reorganization of
the Kansas line. The amount of new
first mortgage bonds to be issued for the
purpose of the reorganization of the
Union Pacific main line will not exceed
S70,000,O00, and of preferred stock $685.
100000. No change in the plan of reor
ganization is involved in the foregoing.
Attorney General McKenna was
shown this statement and was asked if
he had notified the committee of his in
tention as stated, to which he replied
that he had; that Governor Hoadley,
special counsel of the government in the
case, was directed last week to make the
communication to the Reorganization
COHHutlSe. ne also Salu UndJ the appll-
cation would be made to Judge Sanborn
at st. Paul for the postponement of the
sale not of the main line only, but of the
Kansas division lines. He further said
that the government L been very at
tentive to the situation and very desir-
Gus to have sale open to all bidders
one that could not be complained Of
and for that reason desired the postpone
nncnt to enable bidders to prepare and
reasonable assurance that there would
be bidders other than the reorganization
committee at the sale.
The Attorney General declines to state
what other propositions had been re-
ceived, or by whom made, but it is GER
tain that the sum expected to be realized
| is considerably in excess Of tn guarantee
offer of the reorganization committee.
That guarantee, the Attorney General
said, remains IN full force, notwithstand.
ing the postponement Of the sale. No
serious opposition to the consummation
of the sale ON the part of Congress Is
anticipated by the department,