Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1897-01-28
FIRST STEP TAKEN.
The Attorney General Directed to
Begin Proceedings
Against the Union Pacific Railroad Co.,
After First Making the Beat Arrange
meRts Possible for the Protecalon
of the Governments interests

WASHINGTON, Jan. 25.-The follow,
Ing statement was given to the United
Associated Presses by Attorney Gen
eral Harmon yesterday evening:
Upon the defeat of the funding bill
in the house, the president directed
the attorney general to commence
foreclosure proceedings against the
Union Pacific Railway Co., first max
ing the best arrangements obtainabIe
for the protection OF the governments
interests Following the lines indi-
Gated in his last report, the attorney
general began negotiations with the
reorganization committee On Thurs
DAY an agreement was made which
VIII result in immediate steps to fore
close The chief subjects of the ne
gotiations was the protection OF the
government against the risk of sacrifice
OF its claim By sale at price which
would leave nothing substantial after
paying prior liens This protection is
now assured by a guarantee that the
government shall receive on its lien
on the aided portions of the Union Pa
cifc and Kansas Pacific lines, includ-
AAS tAC StAhAuS 4uuU. not less Llan
SIS, 754, 900. The sale will be public,
SO that the government will receive
the benefit of any higher bids up to
the full amount of its claim, principal
and interest The sum of 81. 500, 600 cash
was on Thursday deposited with the
United States Trust Co. of New York
by Gen. Louis Fitzgerald, chairman of
the committee, as security according
to the terms of the agreement
The committee agree 10 bid par for
the sinking fund if it is desired to sell
1t at any time before the foreclosure
sale. Chooses in equity have been pre-
pared, signed by the attorney general
and Hon. Geo. Hoadly, special coun-
sci, and forwarded to St. Louis, where
they will be presented to Judge San
born, who has jurisdiction in all the
districts and whose consent to their
filing is necessary because the receiv-
ers in charge of the property are
made parties defendant. They are
original bills and not cross bills
in the pending suits. Whether
they will proceed as independent
bills or be ordered to stand as cross
bills in the pending suits will be de-
event the result viii be practically the
salne-viz.: The sale of the property
under the governments lien, as well
as under that of the first mortgage.
The bills will be filed in the districts
of Iowa, Nebraska, Wyoming, Colo
RADIO and Utah. Separate bills for the
foreclosure of the lien on the Kansas
Pacific are in the course of prepa-
ration. These will be filed in Mis-
souri, and Kansas.
The arrangement was submitted
to the government directors before it
was closed. They all recommended
its adoption. Their general opinion
was thus expressed: The govern
ment can not prudently longer defer
the settlement of this matter. The
Union Pacific system has already been
much curtailed and it's revenues have
been permanently reduced. Reorgan-
izations of allied and neigh boring
properties have either been accom-
plished or are in train for early con-
summation and the breaking up of the
entire Union Pacific system has been +!
and is steadily progressing. 1t there |
fore seems to US inexpedient, if not !
to neglect this opportunity |
of realizing the sum offered and thus j
expose the government to a continu- !
Gus depreciation of its security"
1t is believed that there will be /
higher bids, but. if not, an estimate
shows that, crediting amounts al |
ready received from the company, the /
government will at least realize a sum
equivalent to the principal of the sub
sidy bonds with interest at about 81 !
per cent from their issue to the aver
lge date of their maturity, or about /
J. As per cent. from date of issue to /
January L, 1897. The minimum of
s45. 754. 900 guaranteed the government
$ in cash, so that all relations with
.he property will terminate upon the
confirmation of the foreclosure and
sale of the property.
The course to be pursued with re-
'pect to the Central Pacific has not
ret been determined.