The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-01-23
'lCIFIC RAILROAD CLAIM
cement Of the Attorney ceneFa'
', g,,s Reorganization Committee
|,oyrpyxHyT TO FoRfcLosf LIEN
IN Prevent the Govern
m.nts Incurrins Loss "' INC
sale Of the ROAD.

,,, r. c.. January 22.-Attorney
Harmon today gave out the fol-
80 statement of the agreement WIN inc
Examination committee OF the UNION
!. ,,a defeat of the funding bill In the
,.a president directed the attorney
'.s.r., to commence foreclosure proceed
= against the Union Pacific Railway
first making the best arrange
.h,a,nable for the protection OF the
'u'A ont,s interests Following tho
~. Indicated In his last report. the al
,oruey general began negotiations win .he
..-a.n,,at,on committee. On Thursday
,s,eement was made which will result
I, immediate steps to foreclosure. Inc
~, subject of the negotiations was the
,,o,ec,ion of the government against the
ri =, sacrifice of its claim by sale at Il
~,ea which would leave nothing substan-
hi after paying prior liens. This protec-
Ian IL now assured by guarantee That the
Government shall receive on It's ilen on
NJ aided portions oi the Union Paciiic
srd Kansas Pacific lines, including the
linking funds, not less than $40, 'o4,ooO'
tina sale will BIZ public, so that the gov
srnment will receive the benefit OF any
tober bids I'D TO the fell amount of its
Ssim principal and interest. The sum OF
II nd OpD cash was on Thursday deposited
Min the United States Trust company OF
New York by General Lewis Fitzgerald,
chairman of the committee, as security ac-
,ordng to the terms of the agreement. The
eommittee agree to bid par for the sinking
fund il It is desired TO sell 1t at any time
before foreclosure sale.
Bills in equity havo been prepared,
sgsd by the attorney general and Hon
Joha Hoadley, special counsel. and for
vrdM to St Louis. where they will be
Oh Friday presented to Judge Sandborn.
Who has jurisdiction in all the districts,
nd whose consent to their filing is neces-
ury because the receivers In charge of the
property are made parties defendant, They
lre original bills and not cross bills in
The pending suits Whether they Will be
proposed as Independent bills or be ordered
to stand as cross 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 the property
under the govrnment's lien as we'll as I'M
der that Of the first mortgage.
The bills will be fled in the districts of
Iowa, Wyoming, Nebraska. Colorado and
Utah Separate bills for the foreclosure of
tho lien on the Kansas Pnciflc railroad are
In course of preparation. These will be
fled in Missouri ard Kansas. The proposed
arrangement was submitted to the govern
ment directors before il was closed. They
all recommended its adoption. Their opin-
Ion was thus suggested:
The government can not prudcntly long
or defer the settlement of this matter. The
Union Pacific system has already been cur.
tailed and its revenues have been perman-
emily reduced. ReorganZatons Of tlat and
ncishboring properties have been accom-.
plished or are in trim for early consumma-
ton. and the breaking up of the entire
Union Pacific has been and is steadily pro-
crossing. II therefore seems to us mex
pedient " not dangerous, To neglect this
opportunity to realize the sum offered ana
mus expose the government to a continu-
GUS depreciation Of its security.
1T Is understood that there will be high
er DIS, but II not, an estimate shows that
creditlng amounts already received from
Inc company the government will at lenst
realize sum equivalent to tho prlrcipal
o. the subsidy bonds. with interest al about
s's per cent from their issue to the average
cate OF their maturity, or about 3.45 per
"iI IRON date OF issue TO January I. 1897
Inc minimum Of Si5, I5A 900 guaranteed
we government is in cash. so that vli rela-
uons with the property will terminate I'M
ger ina confirmation of the foreclosure sale.
me course to be pursued with respect
~ lne Central Pacific has not yet been de-
Im following gentlemen comprise the
ofnnizaiion committee:
LOUIS Fitzgerald, chairman: Jacob II.
r cen,u, chaunrey NJ. perew, =. jefferson
o'olase, v. Marvin Kit and Oliver Ames.
MS Understood that the necessary legal
pVsauime incident to the government TAX
~ Mrt IN the foreclosure suits pending at
y%ana IN behalf Of the first lien holders
~ pe begun AZ once, and the case pushed
70 speedy concluainn