The record-union., 1897-07-30
UNION PACIFIC FORECLOSURE.
JUDGE SANBORN PASSES ON
THE DECREE OF SALE.
That of Ames Accepted-The Upset
Price Placed at $5O,OOO,OOO-
Date of Sale Not Yet Fixed.

OMAHA, July 29-Judge Sanborn
passed on the DEGREES of sale in the
Union Pacific foreclosure case this
morning. He accepted the Anes decree
with but few corrections. There was a
sharp debate over the Government S
decree, the attorneys for the Reorgani-
zation Committee objectipg, The upset
price was placed at $50,000,O0O. Judge
Cornish was appointed special master
to conduct the sale. He will fix the
date later
1t was after l o'clock when the
fOrmalities were completed, and Judge
Munger adjourned court. The attor-
neyS in the case spent another hour
correcting copies of the decree to con-
form to the changes made by the court,
and the papers were then filed.
The decree for the first-mortgag ge
holders covers forty -four printed pages.
1t recites the history of the road, with
the several acts of Congress govern
ing the same, the issue of the different
series of bonds, and the litigation lead
ing up to the suit for foreclosure. 1t is
then decreed and ordered that all the
property and rights of the company
shall be sold at auction to the highest
bidder upon the mortgaged premises
at the freight station of the railroad
company in the city of Omaha. on a
date to be fixed by the special mas
ter. A notice of the sale is ordered pub
lished at least once a week for four
successive weeks in at least one news
paper in New York city, Boston, Oma-
ha, Denver, Cheyenne and Salt Lake
City.
The receivers of the road are ordered
to file within ten days of the entering
of this decree an approximate state
ment of the amount of money in their
hands, the amount of moneys due to
them, and all their liabilities due from
the operation OF the mortgaged prem
Ses.
The decree appoints VIM. D. Cornish
as special master to make the sale, and
he is given power to postpone the sale
from day to day. Prospective bidders
are required to deposit with the master
five days previous to the sale, the sum
of $2000,000 and the successful bidder
must deposit within five days after the
bid as a pledge that he will make his
bid good No bid viii be accepted for
a less amount than SJ0.637, ,435. The
purchaser may pay for the property in
cash. or in cash in firSt-mortgage
bonds, and the amount remaining alter
the application of the two deposits
made must be paid as follows: Twenty
five per cent within thirty days after
the confirmation of the sale, % per
cent. in forty days, % per cent. in
fifty days and % per cent. in sixty
days. Payment may be made in bonds
at the value of the principal.
The money received from the sale is
to be used first for the payment of the
rst-mortgage bonds, and second. il
there is a surplus, to the payment OF
any debt due the Government The pur-
chaser pays all costs of the case, the
expenses of the sale, compensation OF
the master, balance due the receivers
ON salary, and unpaid Indebtedness oil
the receivers incurred during the man
agement of the property.
The decree in favor of the United
States is similar in form to the one of
the first mortgage bondholders, except
that it provides for a sale Of the prop
erty subject to the prior liens reported
in the other decree. 1t provides for a
double sale, to-wit: The subsidy bonds
of S27, ,235, ,512, with interest amount
ing to $50, 525 ,430, making a total OF
S57 ,672, ,430, the upset price being 500,
600, 700. The other is the sale of
S13, ,645, $50 in bonds in the Union Pa
cific sinking fund, and cannot be sold
for less than par value.
THE MONTEREY INCIDENT.