New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-10-26

The Reorganization Committee OF the Union
Pacific Railway yesterday issued the following
statement:
The Attorney-General has notified this COM
s h Of % ask e the
Pacific and Kansas Pacific Railway properties TO
an AFTER e :. sha ha%e met rh
is no doubt taken to free the Administration from
The Reorganization Committee has however.
reached the conclusion that the interests ct the
dieate furnishing the funds 10 finance The reor,
dsas In this s
contemplates so 10 gain prompl possession OF
Of o sse rSff Of the nS @ any 70 SS n
need be-. for the full amount Of the Goyernments
claim. the additional sum involved in this being
As 70 the Kansas lines. the foreclosure Q, the
Kansas Paeas Rsilway vii he ensTsstiesiiy
pressed and when thess forseio.gr,, ;haiI Ravs
sas lines win be completed as pannid.
p, Aiotfnents made under he plan 70 kansas
si5.oo00o In bonds and s2o,oCeooc in preferred
stock. will remain reserved for the reorganization
The amount t Of new nrs, mortgass bond: to b.
the Union Pacific main line will not exceed s75co,-
u" ana Nhs OF prefer m , ed stock 9s $ye =.
volved in the foregoing.
A member Of the Reorganizaticn Committee
made the following additional statement: This
foreclosure sale of the Union Pacific road cam
not be postponed now II Is not possible under
the arrangement. The Government will he paid
off. the committee being willing 10 pay 5000.
600 more. thus rendering the fun amount Of
the Government claim on the main line. No
reason remains for postponemsnt OF the sale
As 10 the Kansas p. .ciic property. II the Gov.
ernment Is not wiling t. take the bid Of the
committee, the Government can take over the
property"
The point OF the matter seems to be that. az
the REORGANIZATION Committee Is willing to bid
the amount OF the Government debt upon the
Union Pacific proper th:rc can be no postpone
ment OF the sale Of this part of the Union Pa
cifc system. If there is any syndicate which
intends to bid against the Reorganiz zation Com
mittee. it will have to pay more than the full
Government claim The new proposition divides
the reorganization INTO two parts. The Govern
nent can, II it desires postpone the sale OF the
Kansas subsidized lines. These lines extend
from Kansas City into the state OF Kansas four
hundred miles. On the remainder OF the Kan
sas Division, known the Denver extension,
there is no Government lien and this part of the
line is already controlled by the Reorganization
Committee. The lines which the Govern
inent has lien would not for r a through line
and would be of little value without the non.
subsidized connection. The Government Sec
ond mortgage on the Kansas lines is S14OOO.OO0
S60Ooooo. Should the Government buy in these
lines, 1t would have 10 pay of the first mort.
gage. and II would then have the lines The
Reorganization Committee has recently ac-
quired the Kansas Central line about two hum
dred miles. which approximately parallels the
subsidized lines The 5uidng OF TWO hundred
miles more would enable the Union Pacific TO
dispense entirely with the subsidized lines in
Kansas.
III there Is no postponement of the SALE the
Government will receive for its claim on both
the Union Pacific proper and the Kansas lines
S3S, 100000. There will h. loss on the Kansas
lines Of Sl3.UUu,OO "a Si4,WM.U0U but no loss
under the new arrangement on the Union Pacific
proper.
The announcement that there will be no change
in the reorganization plan a result of the
additional SSWDOO0 to be paid implies that
the Reorganization Committee can realize suffi-
cent funds for the payment from rhe bonds
provided fer In the reorganization plan The
arrangement seems TO remove the last OBJ
stacle TO the reorganization. SO far as the Union
Pacific line proper Is concerned.
on the NewYork Stock Exchange yesterday
certificates for Union Pacific stock deposited
under the reorganization plan. With the second
assessment paid. declined 10 2l3s and closed at
217s. which was 3% below the closing price on
Saturday.
II was reported yesterday that an interest OF
So 0O.OO0 In the Union Paciflc underwriting
syndicate had been allotted 10 Russell Sage