Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-11-01
Union Pacific Boughtin by the Be
organization COMMITTEES.
PRICE PAIDTo BE $57, 564,s32
This Is Exclusive of Sinking Fund
in the U. S. Treasury.
M'KENNA DISCUSSES THE K. P.

OMAHA, Neb, November 1.-The Union
Pacific road proper, including the buildings
and all that goes to operate the system,
was this morning sold to the reorganization
committee for the. sum of $53,52S, 532. 50.
This amount does not. include the sinking
fund in the hands of the government, and
taking this to be $i.O36,400 the amount
stated in the government decree covering
the sale of the road, the total paid for the
property was s57 SO, 1927
There were no other bidders and the road
went to the reorganiza tion committee with
out any opposition. The sale of the road
was in itself one of the tamest and most
uninteresting perfor mances possible to I'M
agine. The crowd, which was small. was
packed so closely around the doorway and
up in front of the center of the building
that the members of the reorganization
committee, the men who came out to buy
the road, were unable to see anything or
hear word of what was going on
Committeeman Present.
Those of the committee and connected
with it who were present were Receiver
John w. Doane, E. Ellery Anderson, Gen.
Louis Fitzgerald of the reorganization
committee and Winslow S. Pierce, the at
torneys of reorganization committee and
the wizard who solved the scheme of re-
organization.
Alex Miller Of Boston, secretary and as
sIstant controller of the company; John
Sheridan of Maryland, a government direc-
tor of the railroad.
General Solicitor Kelly and General
Gown, the government representatives;
Jacob F. Schiff of Boston, Marvin Hughitt
of Chicago, T. Jefferson Coolidge, jr., of
Boston and Lawrence Greer, his assistant.
Mr. Cornish carried under his arm large
portfolio bound with the regulation red
tape, and as soon as the crowd gave him
room to extend his arms, he unified the
string and drew forth a number Of papers.
Selecting one Of these, he replaced the
others, and holding 1t out, he said:
Gentlemen, 1 am here to sell certain
railroad properties in pursuance OF a de-
cree of the United States circuit court.
The Case of the Kansas Pacific.
Attorney General McKenna was in con-
ference for some time today with ex-Gov.
Hoadley, counsel for the government in the
Pacific railroad cases. The conference re-
lated to the coming sale of the Kansas Pa
cific. The Attorney General has had no
idea of trying to stop the sale of the Union
Pacific since his last agreement with the
reorga nization committed .-...-
Regarding the coming sale of the Kansas
Pacific MIR. Mckepna talks plainly. AS TO
the stories that the governments claim Is
impaired by the separate sale of the KAN
Pacific, the Attorney General says the
ments made by The Star last week. He
says that not over s7,OoO,OOO can be lost at
the outside.
As to the claim that the reorganization
committee will not bid for the Kansas Pa
cific and can parallel that road, Mr.. Nc
kenna says: 1T r-
THE ownership of the Kansas Pacific is
part of the committees scheme of reorgani-
cation. They hold liens junior to those of
the government. They cannot make them
good except by the ownership of the road.
Besides. they are owners of the first mort
gage. They must bid to make that good. But
suppose the committee do not bid. Others
will-the government may. The road is a
very valuable one. In 1880 its gross income
was over $3,0sD.O00 4 am talking of the
aided portion, mind, exclusive of the un-
aided portion. Its net income in 1880 was
$i14. 413.20, with unusually large expendi-
lures for repairs. In 1891 the net income
was S1,223 6t5S2. In 1892 81, 5Ol 2tO33 It
declined Experiencing the effect of the nard
times, as 1T will experience the effect of
gccd tins again) through 1853, 1894 and
1885 to $751;, $500, rising in 1896 to s7O5.-
761. 66.
The years 1890, 1891 and 1892 are the real
tests OF Kansas Pacific's net income and it
can be put down at over 81 100000 and this
Is per cent on $25.OOO,O0D-5 per cent on
S2oWO.UOO. Does any sane business man
believe therefore. that the reorganization
committee will let 1t be sold for So. 300 900
when 1t Will pay per cent on nearly twice
that amounts Per cent on nearly 5000 600
more than that amount--owning as the
committee does, liens junior to that of the
government, and which will be in such
event total loss? Now, to paralleling
the road. If this would destroy it or i'm
pair it's value who would suffer? Neces-
sarily the reorganization committee, by
loss OF its Junior securities. Would not this
policy. to use the homely expression, be
cutting or ones nose to spite ones face? 4"