The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-07
fcers of the army, and one from the medical
officers of the navy.
PACIFIC ROADS SALE.

The Union Pacific railway main line was
sold under the decree of the United States
court for the district of Nebraska on the first
and second Of November, of this year The
amount due the government consisted OF the
principal of the subsidy bonds, $27, 2355l2.
and the accrued interest thereon. 81, 2ll III 10
making the total Indebtedness, SIS, AIS 233. IS
The bid at the sale covered the first mortgage
lien, and the entire mortgage claim of the
government, principal and interest. The sale
OF the subsidized portion of the Kansas Pa
ciic line, upon which the government holds
a second mortgage lien, has been postponed
at the instance Of the government to Deem
Der l6, 1897. The debt of this division of the
Union Pacific railway to the government on
NOV; l, 1897, was the principal of the subsidy
bonds, $6,SO3O0O, and the unpaid and accrued
interest thereon, S6,626, SO, making a total
Of $12, 929. $50 49,
The sale of this road was Originally adver-
used for Nov. 1, but for the purpose of Sc
curing the utmost public notice of the event
1t was postponed until Dec. IL, and a second
advertisement of the sale was made BY the
decree OF the court the upset price on the sale
of the Kansas Pacific will yield to the gov
eminent the sum of S2,500,00O over all prior
liens, costs and charges. If no other or bet
ter bid is made this sum is all that the gov
eminent will receive on its claim of nearly
$13 coo. The government has no informa-
ton as to whether there will be other bidders
or better bid than the min
imum amount herein stated. The
question presented therefore is:
Whether the government shall under the au-
thOrity given it by the act of March 8, 1887,
purchase or redeem the road in the event
that a bid IS not made by private parties
covering the entire government claim. To
qualify the government to bid at the sales
will require a deposit of $500 600 as follows:
In the government cause, $500 coo, and in each
OF the first mortgage causes $500, 600, and in
the latter the deposit must be in cash. Pay
ments at the sale are follows: Upon the
acceptance of the bid, a which with the
amount already deposited shall equal 10 per
cent of the bid; the balance in installments
of % per cent. 30, 30 and 30 days after the
confirmation of the sale. The lien on the
Kansas Pacific prior to that of the government
on the Both of July, 1897 principal and inter-
est, amounted to S7,2S1, O4S11 The govern
ment therefore should it become the high
est bidder. will have to pay the amount OF
the first mortgage lien.
l believe that. under the act of 1857 1t has
the authority to do this, and. In absence OF
any action by congress, l shall direct the see
rotary Of the treasury TO make the necessary
deposit required by the courts decree TO
qualify a bidder and 10 bid at the sale a
of the debt due to the government but sug-
gest in order to remove all controversy,
that an amendment of the law be immedi-
ately passed explicitly giving such powers
and appropriating in general terms whatever
sum is sufficient therefor.
In so important matter as .he govern
ment becoming the possible owner of rail-
road property which it perforce must con-
duet and operate. l feel constrained to lay
before congress these facts for it's consider
alton and action before the contamination
of the sale. 1t is clear to my mind that the
government should not permit the property
to be sold at a price which will yield less
than one-half OF the principal of its debt
and less than OGe-fifth OF its entire debt
principal and interest But whether the gov
eminent rather than accept less than its
claim should become bidder and thereby
the owner Of the property submit to the con-
greSs for action.