San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1897-10-18
PACIFIC settlement.
Reorganization Committee
Review It.
COMMITTEE HAS ACTED S0LEY
IN THE INTESESTS OF THE
GOVERNMENT.
Only Made Two Suggestions And
There To Protect The Govern
ment In Its Reception OF Bids.
Present COniitiOnS0f The
Property.

new 1Ork, Ocl. lo.-1He OHloh q
cific reorganization committee has
submitted a review of its petition and
of the conditions surrounding the re-
organization under its charge.
In respect to the terms of the de-
crees of foreclosure, the committee
claims to have had no purpose what
ever and to have made no suggestions,
except in the cases of two of the pro-
visions, that requiring the deposit to
be made five days in advance of sale
\ and that extending the time for the
| complete payment of the purchase ov-
er period of sixty days after the
confirmation of the sale.
| The provision for such an enxtended
time" the committee says, was de-
| sired because of the magnitude of the
transaction and to secure reasonable
terms of payment consistently with
such early delivery of the property as
must afford basis for carrying out
the large financial engagements in
volved.
The decision of the DEGREES fixing
| five days in advance of the date Of
sale for the deposit or earnest money
was desired, because for a period OF
| more than eight months prior to the
sale the committee had upon deposit
| the sum of "a, SOC, 900 to secure a guar
antee bid and competing bidders could
act in full knowledge of the commit
tees plans and provisions"
The statement reviews the work of
| the reorganization committee during
| the past two years, touching upon the
subsidy debt; the defeat of the fund
| ing bill in Congress in 1886 and the
| cause for foreclosures.
The present conditions are revised as
follows:
The present solution of the business
relations of the government to this
property, is the result of a movement
which all less situations to the gov
eminent have been eliminated. 1t is
the only solution open to the govern
ment under the existing Legislation of
Congress. 1t is a solution which has
received the approval of two admins
trations.
1T was recommended by both of
the receivers who were appointed for
the purpose of caring for the interests
of the government and it was unan-
imously recommended, as well, by the
five directors who were appointed to
serve the interests of the government.
When the committee took charge of
the reorganization of the Union Pa
cific railroad, the first mortgage bonds
having priority to the lien of the gov
eminent were scarcely bringing par;
the divisional mortgage bonds were
selling at heavy discounts and but
small comparative value was attrib-
uted to the second mortgage of the
government. Today the first mort
gage bonds are worth a premium and
the government is assured that it will
realize the s50,000,000 or more for its
interest.
""The security holders of the company
are satisfied. The government is sat
isfied with the outcome. The enter
prise of the government in promoting
the construction of the Union Pacific
railway will, for a financial and ma
terial standpoint, prove to have been
most profitable.
Under the conclusion of the matter
which now approaches, these pecuniary
and material results will have been
accomplished and secured and the po-
litical evils which have attended the
practical relations of the government
TO this property will have been brought
to an end.'