The Saint Paul globe., 1897-10-27
SOLID ENGLISH SYNDICATE
Being Formed to Bid on the Union
Pacific.


LONDON: Oct. 26.-The first attempt
to organize syndicate in London fOr
the purchase of the Uni N Pacific rail-
way, having the appearance of sub.
stantiality, is being made by Coates,
Son & Co., stock and share brokers.
A swarm of cheap American and Eu-
ropean promoters has infested the city
since it became known that the prop
erty would be put up at auction, but
their efforts could not be considered
seriously. Coates, Son & Co. IS a fnan-
ciaI house of the highest standing,
which 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 opposition syndicate.
The chief obstacle to be overcome was
the short notice given by the court,
notice much too short to allow the
maturing Of plans for securing the
necessary capital.
The plans of Coates, Son & Co. were
communicated to United States Con-
sui General Osborne. who, thinking
that better price would result from
fostering this competition, cabled to
Attorney General McKenna yester-
day that another reliable bid might
be made, if the sale were postponed,
adding: This effort to secure the
property looking to the reputation of
the parties concerned, is undoubtedly
an honest one"
The only member of the Coates firm
who was accessible this evening de-
clined to discuss the project
Joseph Price, secretary of the Eng
lish Shareholders association, said this
afternoon: tIt is obviously impossible
for any interest but the reorganization
committee to secure the road. Their
syndicate is prepared to pay the entire
Indebtedness, if necessary, 10 secure
it. Moreover, the reorganization COM
mittee controls practically all the first
mortgage bonds, and those could be
transferred under the terms Of sale, in
part payment of the bid The reorgan-
ization committee represents practical
ly all the shareholders, as $35 ZOO, 900
worth of stock has been already de-
posted with the bank of Montreal un-
der the committees control
Pierpont Morgan declined this even
ing to discuss the matter in any as
pect. Eie said, however, that he did
not expect to sail for New York to-
morrow, although booked by the Teu-
tCnic. 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 undis-
turbed and confident that it will be
the only bidder at the foreclosure sale
Its successful competition will mean
very considerable recovery in Union
Pacific shares. Large option deals
have occurred lately with that in
view
The Times, in it's financial article,
will say tomorrow: ''The considera BILE
sales of Union Pacific railway shares
yesterday (Tuesday) were caused by
what is regarded as a distinct breach
of faith in United States Attorney
McKenna's conduct of the foreclosure
The reorganization committee having
deposited 10 per cent of their bid, it
is contended that the attorney gen
erals threatened action is a departure
from the spirit of the engagement.
whatever legal technicalities may be
advanced in support of it, 1t is pos
sible, however, that the committee
will defeat the attorney general by
buylng in the main line, paying off
the full government claim and aban-
doning the Kansas Pacific division"
The Standard, in it's financial article
commenting on the report that the
reorganization committee is prepared
to add $S,OO000O to it's bid for the
Union Pacific railway ithout altering
the reorganization plan at all. SAYS:
AN indirect light is thus thrown on
the wide scope for robbery provided
by this plan. The total profit NAV he
estimated at anything between $4,000. :
600 and f10,O0O,OOO, according to the
success with which the new securities
to be created are SOl0.'i