The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-01-23
BARGAIN is STRUCK
ATTORNEY GENERAL BEPORTS Pa
CIFIO ROADS PROCEEDINGS.

Having Treated With tn. Union Pacific Re
organization Committee He Announce
That the Governments Interests arc s
Far Guaranteed That There Will be Bi
at Least tine Original Amount of tb
Bond-Foreclosure Proceedings Will b
in Judge Sanborn's Court-O:her Rail
way Observation-Disclosures
Washington. Jan. 22-Attorney Gener
II Harmon today gave out the following
statement Of the agreeICen- with rhe re
organization committee Of the Union Pa
r.rc railways:
Upon the defea: of the funding bill
N the house, the president directed the
attorney general to commence foreclos-
are proceedings against the Union Pacific
company, first making the best arrange
meats oDtainable for the protection OF me
governments interests. Following the
ines indicated in MS last report the attoT
aey general began negotiations with the
reorganization committee. On Thursday
IL agreement was made which VIII re-
suit IN immediate steps TO foreclosure.
The chief subject of the negotiations was
he projection Of the government inter
SIS against the risk of sacrifice OF its
:lain1 by a sale al a price which would
cave nothing substantial after paying
ori0r tiers This protection is now assur-
ii by a guarantee that the government
shall receive on Its lien on the aided por
ions OF the onion Pacific and Kansas
Pacific lines, including the sinking
,und, not less. than $40. 754, 900.
The sale will be public. so that the
government will receive the benefit of
any higher bids up 10 the full amount Of
rs claim pril cipal and interest. The
;lIn oe -, 100000 cash was on Thursday
deposited with the United States Trust
company Of New York by General Louis
Fitzgerald, chairman OF the committee,
Is secur ,ty. according to the terms Of
The agree ynenV. The committee agree 20
Old par for the sinking fund if it is de-
sired 20 seE 1t al any time before the
foreclosure sale.
Bills in equity have been prepared by
The attorney general and Hon. George
Ho2dley, SPECIAL counsel, and forwarded
10 ST. Louist where they will be on Fri
Gay presen ted 10 Judge SSnborn, who
mas jurisdicEi,5n in all the districts. and
whose conse gjl 10 their filing is necessary
because the receivers in charge of the
property are made parties defendant.
They are original bills and not cross bills
proceed as ir dep andent bills OF be order
ed TO stand ais Gross bills in the pending
suits will be determined by the judge,
but in either: event the result will be
practically the same, viz: the sale Of
tfe property urder the governments
lien as we'll sas under that of the first
mortgage. The bills will be fled IN the
districts of iowa. Nebraska. Wyoming.
Colorado anal Utah. Separate bills for
the foreclosure Of the lien on the Kansas
Pacific are In course of preparation.
These will be filed in Missouri and Kan
Eas.
The proposed arrangement was sub
rlitted to the government directors be-
fore IT was closed. They all recommend
ed its adoption. Their general opinion
was thus expressed: The government
cannot prudently longer defer the settle
ment of this matter The Union Pacific
system has already been much curtaiIad
and its revenues have been reduced. Re
organization Of allied and neishboriny
properties have either been accomplished
or in tram for early contamination. and
the breaking UP of the entire Union Pa
c:fic system has been and is steadily pro-
crossing. II therefore seems to us mex
pedient If not dangerous to neglect this
oportunity Of realizing the sum offered,
and thus expose the government TO a
continuous depreciation of its security.
1T is believed that there will be nigh
e. bids, but if not. an estimate shows
that III the amount already received
from the company the government will |
at least realize a sum equivalent TO the
principal Of the subsidy bonds. with IN
teTest at about 3 Is per cent from their
issue to the date OF their maturity. or |
about 3.Sa per cent from date OF issue to |
January l. 1897
''he minimum of 65,754,G guaranteed |
the government is in cash, so that all re- !
lations with the property will terminate |
upon the confirmation of the foreclosure |
sale
The course to be pursued with re- |
spect TO the Central Pacific has not We, |
been determined
The following named gentement COM
prise the reorganization committee.
Louis Fitzgerald, chairman; Jacob II |
Schiff, Chauncey N. Depew. T. Jefferson
Coolidge. ". Marvin Hughitt, and Oliver |
Ames
1t is understood that the necessary !
legal proceedings incident 20 the govern ,
ments taking part IN the foreclosure |
suits now pending at Omaha Oh the be-
half of the first lien holders. will he be
gun at once, and the case pushed 10 a !
speedy conclusion. The outlines of the /
agreement with the reorganization COM /
mittee were approved by the attorney
general very soon after the failure of the
funding bin. only the exact amount of !
the guarantee remaining in aheyance:
nor was this point decided until Judge
Harmon's visit 10 New York, early in
the present week.
The first offer Of the syndicate was
s45 200 even. The attorney general,
however. insisted upon an increase yes
terday OF $75i.o9o. which Was finally |
agreed 70 at me last conference yester-
cay. This makes the total amount
which the government viii receive in
cash S5. $4,000 From this amount.
however, tho government VIII redeem ct
maturity the bonds now outstanding,
the last % which does not become due
until 1899. The interest on those bonds
until maturity viii also be paid by the
government.
In official circles the agreement IS re-
carded as highly advantageous to the
government Although the interest |
which the government has paid and will /
continue 70 pay until the last Of the out
standing bonds mature. was ct the rate
of per cent. the figure obtained by the |
attorney general is regarded a very III
eraL For many years the governments
money involutad in yhe Pacific railroads !
has not been regarded as an investment
end the interest payments have not been
looked upon othe- ;han as on expense
and even the figure guaranteed is look
ed upon with much favor.
New York Jan. 22.-Au0oun@er7ent is
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"For fifteen wears
my daughter sui.