The Lamar register., 1897-10-16
UNION PACIFIC SALE.
rERMs oF rAs coMpRoMlsE
Attorney General Mckenna Issues State
pient OF the Agreement Made Thinks Il
the Best to Be Obtained.

statement regarding the sale Of the I'm
ion Pacific railroad:
There seems TO be n misapprehen-
sion Of the action of the previous ad-
minlstraiion in regard to thePaeific rail
roads. There was no agreement to sell
the roads or the sinking fund OF the
Union Pacific.
Elm consideration OF the appearance
OF the United States in the foreclosure
proceedings already commenced. and
the prosecution OF Its own mortgage, II
was guaranteed bid of S45. .Ta5.0S9 at
the sale, which should be ordered by
the court, over and above the amount
Of the first mortgage. This amount in
eluded the sinking fund and s,s,5oO,-
COO in addition.
There was no formal agreement. II
consisted OF letters between the reor-
ganization committee and separate
counsel OF the government and Attor-
ney General Harmon, all OF which
We're published In Senate document ~,
Fifty-fourth Congress. second session.
The agreement, as have said, goes
no further than 10 provide for the ap-
pehrance OF the government in suits
brought for the foreclosure OF the first
mortgage bonds and bringing suit OF
foreclosure for its own.
THE sale OF the property was land
necessarily must be by the direction
OF the court. as in other foreclosure
suits. with the whole world for bid
ders.
The appearance WAS made and the
suits instituted as agreed before the
advent OF the present administration.
These suits. therefore. II had 10 ac-
cept. and 1t has endcavored To securc
such decree as Il believed the govern
mcnt under the laws Incorporating The
railroads was entitled 10.
~It may be dlSpuiable as TO wheiher
the agreement 10 go into court should
have been made. II is not disputable
as TO what thc government after u
| was In the court could do. There,
/ like any other suitoE the government
/ was subject 10 the orders ~ the court,
| | mean of course, subject 10 the or
iers OF the court ns creditor. A.
sovereign. its powers could not b. az
/ f,scted and have not been by the de
| cre,S- We think, therefore. that me
/ action OF the government and the stu.
| alton are very plain II has not sold
~ Interest. II has enabled interests
10 be sold at public auction to the re-
| organization committee. or 10 any com
mittes or to any body or association
which, or who. may bid the highest.
'In what have said do not mean
| to imply criticism OF the previous ad-
L mtniStratiuu What j. did. II no nouos
/ lid on manure reflection and in sin
| crest Judgment. and its action was rec,
! 9mmended by both receivers. who had
been appointed upon the application
| sf the United States, and was also
unanimously recommended by The nYe
government directors.
Now as to the relation OF the gov
| ernment TO the DEGREES; They, as rem
iered, We're In many respects gratify-
ing. but in other respects were not as
the government strenuously contended
for For instance. the Omaha bridse
mortgages. amounting 10 about ST.
100000. were adJudged TO be superior
to the lien OF the government on that
part of the road between Omaha aud
/ Council Bluffs. and, in addition. The
| money aud assets In the hands OF the
| receivers accruIng from the operation
Of th.. roads were ordered to be sold
| Instead OF being reserved 10 meet
deficiency Judgment expected 10 be OBJ
tained by the government This
| amounted to more than 100000
I, This. Of course would become impor-
| tant IL the price bid at the sale should
not equal the governments lien.
Dissatisfied with the DEGREES, there
fore. the government considered the
| propriety of an appeal. The reorgani-
| zation committee. learning this, came
! forward with an increased bid OF over
| 100000. making tie total OF their
| guaranteed bid S50.Oo0.O0O instead of
/ s45. 754 $50. an increase Of S4,2f5,941.
This increase removed the objections