The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-10-27
LONDON SYNDICATE.
There VIII Be No Show For 1t to
Get In

London. Oct. 26-rThe first attempt to
organize a syndicate in London for the
purchase of the Union Pacific railway
having the appearance of substantial
ity is being made by Complies Son &
Co., share brokers. A swarm of cheap
American and European promoters has
infested the city since it became known
that the property would be put up at
auction, but their efforts could not be
considered seriously.
Complies Son & Co. is a financial
house of the highest standing, when
has had railroad interests in Canada
and has sold Canadian and American
bond issues in Europe. The concern
became interested in the Union Pacific
sale and is said to be organizing an op-
position syndicate.
The chief obstacle to be overcome was
the short notice given by the court,
notice much too short to allow the ma
turing of plans for securing the neces-
sary capital.
The plans of Complies Son & co:
we're communicated to the United
States Consul General Osborne. who,
thinking that a better price would re-
suit from fostering the competition,
cabled to Attorney General McKenna
yesterday that auf-'t1er reliable bid
might be made if the sale were DCIt-
poMed, adding: This effIcGlt to secure
the property. looking to the reputation
of the parties concerned is undoueted-
ly an honest one"
yesterday that another reliable might
be made If the sale were postponed, ad-
ding: This effort to secure the prop
erty, looking to the reputation of the
parties concerned, is undoubtedly an
honest one"
The only member of the Complies firm
who was accessible this evening de-
clined to discuss the project.
Joseph Price, secretary of the English
Shareholders association, said to a COR
respondent of the Associated Press this
afternoon:
ut is obviously Impossible for any
but the reorganization committee to
secure the road. Their syndicate is
prepared to pay the entire indebtedness
if necessary to secure it Moreover. the
reorganization committee controls prac-
ticaIly all the first mortgage bonds,
and these could be transferred under
the terms of sale in part payment of
the bid. The reorganization committee
represents practically all the sharehold-
ers as $685. 100000 worth of stock has
already been deposited with the bank
of Montreal under the committees con-
troll"
J. Pierpont Morgan declined this
evening to discuss the matter He said,
however, that he did not expect to sail
for New York tomorrow although
booked by the Teutonic, He intimated
that he did not know when he would
return.
Truth says: a deal. of hard lying is
evidently going on concerning the
Union Pacific railway. Possibly some
efforts are being made to promote a
new syndicate, if only for Matchmaking
purposes. But the original syndicate is
very powerful, apparently undisturbed
and confident that it will be the only
bidder at the foreclosure sale. Its sue
cessful competition will mean a very
considerable envy in Union Pacific
shares. Large option deals nave occur
red lately with that in view.
The Times, in it's financial article, will
say tomorrow: The considerable sales
of Union Pacific shares yesterday
(Tuesday) were caused by what is re-
garded as distinct breach of faith
in United States Attorney General Nc
Kenna's conduct of the foreclosure pro-
ceedings. The reorganization commit
tee having reposited 10 per cent of their
bid, it is contended that the attorney
generals threatened action is depar-
ture from the spirit of the engagement,
whatever legal technicalitieS may be
advanced in support of it. 1t is prob
able, however. that the committee will
defeat the attorney general by buying
in the main line, paying off the full
Kansas Pacific division