The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-10-25
PHANTOM U. P. SYNDICATE.
NOW IT'S SWEPT OFF THE STAGE,
WHAT WILL THE GOVERNMENTD oP

Results to re Expected Ir the sale shouia
He Postponed As n Consequence or the
Cinmor Raised by Exposed 1mpostors-
Suppose the Government should MA Itseirs
1t is many years since a chapter In the history
or wall street has been read with so deep and
widespread interest as that printed in THE
SUN yesterday. in which tho Hon. Russell Sage
and Gen. Samuel Thomas told OF their connec-
ton with the bogus syndicate that tho World
projected last week as an incident to its attacks
upon the Union Pacific Railroad reorganization.
Their confession of their credulity and Of their
evident disposition to interior, In .
serious business situation at the sun.
gestion of a well-known adventurer and of
a disreputable newspaper was tho principal
topic of conversation at tho clubs and hotels
that Wall street men frequent OH Sundays, Ii
is now evident to every one that Messrs. Sage
and Thomas's confederation OF THE SUNS ex-
posture Of Pulitzer's latest nefarious scheme dis
poses Of the last vestigo OF the fraudulent syndi-
cate which, the Uiorid announced with noisy,
discordant fanfare, would compete with the
Union Pacific Reorganization for
tho purchase of the Union Pacific properties 40
tho various sales early next month.
Those who are familiar with Wall street mon
and affairs were both amused and amazed at
the statements OF Messrs. Sage and Thomas,
and at tho same time they realized tho possi-
piity VI berlOub consequences from this most
unfortunate episode. Tho fact stated in THE
Sun yesterday that the suggestion OF n com.
peting syndicate has mado an impression In
official circles at Washington cannot DO dis
pntcd. Whether the exposure of tho nimsy
character of the suggestion will remove
that Impression remains to be seen. 1t
appears that some Of tho Presidents adj
visers have considered the advisabillty Of
asking the court to postpone the sales of
the various Union Pacific properties. Right
here it may he said, and said authoritatively,
that the Union Pacific Reorganization Commit
tee does not deprecatc competition at those sales.
1t is prepared to meet 1t. and would doubtless
welcome 1t, since the appearance OF n sub
stantial competitor would forever dispose OF the
wild and absolutely unwarranted idea that the
agreement Of the Reorganization Committee
with the Government to pay q minimum price
for the Government claim. conceals a secret
understanding that the committee is to secure
the property by liquidating the claim at that
figure.
Tho Administrator has done what every
second mortgage bondholder has to do whom his
lien is imperilled by the foreclosure OF o prior
mortgage. In default of action by Congress ID
has made the best terms 1t could with those who
represent not only the underlying bonds on the
main line OF the Union Pacific Railroad, but also
represent practically all Of the creditors OF the
tributary lines which are essential to the profit
able operation Of the portions upon which the
bonds issued by tho United States are q lien.
The field is open for any one else to come In and
offer better terms at the sale.
What the Reorganization mmit natural
~ objects to-and it Is an objection that must
appeal to every one DESTROYS Of a continuation
OF the present condition Of business prosperity
Is a postponement of the sale on the unsub-
stantial ground that a delay might result in the
formation OF a combination that might possibly
see mt to compete for the property at figures
higher than the minimum bid already assured
the Government. As already noted, the Reor-
ganization Committee does not fear competition,
but a postponement Of the sale obviously sug.
gests a number OF exceedingly pertinent ques-
tions.
In the first place it may be asked II the Gov
eminent, In the absence of any substantial as
surance of a prospective competitive bidder.
can afford to take the responsibility Of endan-
gering its present guarantee. A postponement
of the sale might derange the plans OF the Re-
organization mi to an extent that would
compel 1t to abandon its programme. Compli-
cations between the United States and Spain
might have q very serious effect upon tho
Union Pacific situation pending an adjourned
sale. A postponement might carry the entire
Union racine issue BACK into Congress. which
has been VIGOROUSLY incapable Of dealing with
1t for many years past.
The most pressing question from the point Of
view OF the Government, should it move for a
postponement of the sale, is. where will tho
treasury get the $3o,ooo 900 or more that 1t will
have to pay out on Jan. l next for the maturing
Pacific railroad bondsf The Treasury balance is
being steadily depleted In spite OF the operations
OF the Dingley Tariff law and its supply of
gold would have to be drawn upon heavily to
pay of the bonds. The only alternative would
be a new issue OF bonds, a move that the coun-
try Ia hardly prepared for while a new tariff
law is on trial. The Reorganization Committee.
on the other hand. has practically in bank the
amount required to pay off the Governments
obligations and in q way that will minimize tho
effect upon the money market OF the transfer of
such an enormous sum from the channels Of busi-
ness into the Treasury and out again. All Of the
Important details referred to above have engaged
the itentiom and skill! Of tnc leadirg ba' kcrs
and mn I pXDerinnCcd anai Ciers of thi, country