The San Francisco call., 1897-10-27
Offer Of the Reorganization
Committee Accepted by
the Government.
THIS MEANS PAYMENT OF
OVER S5S,OOO,OOO
1t Is Also Expected That All the
Kansas Pacific Obligations viii
B, Pr, mptly Met.
Special Dispatch to THE CALI.

NEW YORK, Oct. 26.-The reorganiza-
ton com mittee of the Union Pacific Rail
road to-day received an acce eptance from
the Attorney.General of the United States
of an offer of an amount eoualing the full
claim of the Government gainst the main
line of the Union Plcitic Railroad, which
was some $5S, ,000,C00.
ST. PAUL. Oct. ga telegram from
Attorney General McKenna this after
noon notified the attorneys for the Gov
ernment in the Union Pacific Railway
case that the sale could proceed as origin
ally planned, arrange having been
made with the reorganization committee
that guaranteed to the Government its
fall lien on the properly.
General John c. GOWN of Omaha and
Ex-Governor George +. Hoadley of New
York were in the city to press the motion
for a six weeks postponement, notice of
which had been given yesterday by Cen
eral Gown. However, this afternoon
came the telegram from the Attorney
General ordering the withdrawal of the
motion for postponemeht. This tele-
gram was presented to Judge Sanborn of
the United States Circuit Court, and the
notice OF the motion to postpone was
Withdrawn. By stipulation the sale of
the Kansas division was set for Dece m Der
ID. but the main line will be sold next
Monday at Omaha, as heretofore an
nounced, by Master Commissioner Cor
nish.
WASHINGTON, Oct. 26 Although the
Government officials decline either 10 af-
firm or deny the report tits accce ptance of
the new proposition of the reorganization
committee of the Union Pacific Railroad,
there IS reasonable doubt of its accuracy.
This proposition is understood 10 be an
increase of the original guarantee bid OF
$50, 600, 0G0 10 a sum sufficient TO cover the
tull amount of the Governments claim
against the Union Pacific road proper,
which on October l aggregated $5S. 067. 1893.
This includes the princi1al OF the debt,
which amounts to S27. 236. 5l2, and the bal
snce of the interest paid by the United
States, amounting 10 $50. $50, $50.
This represents the full amount of the
Union Pacific. obligations to the Govern
ment. The sale OF this line will be pro-
ceeded with, as originally intended, about
November l. As to the Kansas Pacific
road, the committee withdraws its guar
anlee and consents TO a postponement of
the sale to any date TO suit the conven-
fence of the Government.
Government in the same position with re-
spect to the Kansas Pacific as before the
negotiations were instituted, and in this
situation the Government may, it it de-
sites, postpone the sale indefinitely. The
debt OF the Kansas Pacific 10 the Govern
ment aggregates nearly $l3 00o, 900, OF
which Sc, 033, 900 is pr ncipal and the re-
mainder unpaid interest. Whether the
Government will a The court 10 order a
sale of the Kansas Pacific on December 10
cannot be stated, but should il so decide
1t is understood that 20 objection will be
raised by the reorganization committee
the net result of the new arrangement so
far as concerns the Union Pacific is re-
earded by the officials as highly ad-
vantageous TO the Government, as it Sc
cures all that it has ever claimed to be
due il, and renders 1t practically certain
that very large share of the debt OF the
Kansas Pacific will be realized whenever
1t may desire to consent TO its sale.