, 1897-10-28
GOSSIP Or TEE SALE.
PRINCIPAL AND INTEREST WILL
BE PAID IN FULL, ACCORD
ING TO PROMISE.
The Amount Will Be Paid Inside Of 60
Days and the Governments Interest
in the Road Will Term.nate-Set,e-
ment Reflects Credit Upon the Ad-
mi%nistration.

In referring to the Union Pacific sale,
which has been the ail%-absorbing topic
during the past few days. the Omaha
World-Herald says:
The wires were kept hot during the
afternoon and evening, and when the
legal gentlemen appear before Judge
S%anborn tomorrow morning for the for.
NAL entry Of he orders in the Kansas
Pacific case, they will be armed with
the Geographic consent to the proceed.
ings of all the parties in interest.
In speaking OF the terms OF the agree
ment OF the reorganization committee,
Gov. Hoadley said tonight:
THE committee viii bid par for the
sinking fund. which amounts to about
SIS, 0O0,0 900 and 4 sufficient amount in
addition to return the government the
principal OF its claim against the Union
Pacific, dollar for dollar and Interest at
6 per cent. This represents an aggre-
gate on November I Of nearly $50, 000,-
900.
at will he practically a cash transact
len. The sinking fund is in the posses,
sion OF the government now. 1t amounts
20 a credit on the books Of the treasury
department in favor OF the read and is
made up Of various sums due the road
by the government for carrying mails
and other transportation, a portion O,
its and sales and a certain percentage
d its earnings. Part of 1t Is cash items
md the remainder is invested in securl-
lies. The securities will average par
value.
THE noun bid by the r%eorganlza-
lion committee will be paid within 60
lays and he governments interest in
he main line OF the Union Pacific as a
creditor will terminate.
This settlement is highly advantage
GUS to the government and reflects no
little credit upon the administration. |
believe that when Mr.. Cleveland enter
aimed the first proposition OF the COM
mittee OF $45, 00O, 600 he had the approval
Of the country, but conditions have
changed and the present administration
has effected a settlement and will in,
crease the amount the government will
receive about $l4 .000, 900. 1t is a matter
" general congratulation.
Il do mo- believe that any man who
had given the subject careful attention
.wo years ago would hav maintained
hat the governments claim was worth
anything" said Gen. GOWN. Certain,
y II a sale had been had a year ago the
government would have been fortunate
o have received a bid OF so cents on the
dollar. Now it gets cut even 1t is
certainly a very happy outcome"
Gov. Hoad.ey, Gen. Gown and Judge
Kelly will remain in the city until to,
morrow evening, and it is expected tina
, he last details Of the compromise will,
be concluded during the day.
Relative to the Kansas Pacific lines
and the postponement OF the sale to De,
cember Is, Gen. Gown said tonight:
Il THE governments CAIN against thu
Kansas Pacific amounts approximately
% $13, 600. 900. In the original PROPOSE
lion Of the reorganization committed
bheir offer OF $45. OOO, 900 included both
, the Union Pacific line and the Kansa:
Pacific. They have now raised theil
offer for the main line alone to abouj
$50, 000, 900, and the government still
has its lien on the Kansas Pacific tt
loof,ron FSr yrh,lryar II will hrirD
There is an upset price OF 81, 500. 900
, SO that it cannot bring less than tina
amount. but we shall ask that the de-
cree Of sale be changed SO as to allow
; itself. However, the Kansas Pacific /:
a valuable property in itself, and there
. Is no doubt that a good price will be Of
tered for it. 1t runs from Kansas City
10 Denver, something over 600 miles.
The governments lien, however
does not apply to the whole OF the line
AS originally projected the line was to
be built to intersect the main line OF the
Longitude and the congressional subsid,
was voted for such a line.
subsequently the plans were chang.
ed so as to allow the line to be built to
Denver, but it was provided that the
subsidy should only apply to the mile,
age included in the original proposition,
which was 39S miles. The lien, there
fore. only applies to that length OF road,
but it does cover the valuable terminals
in Kansas City. and, with the provision