The herald., 1897-11-02
REORGANIZATION COMMITTEE
OFFERS THE SUM DUE TO THE
GOVERNMENT
Men Of Millions Squatted on Door
steps While the open-Mouthed
Crowd Looked On
Associated Press Special Wire.

11:45 o'clock this morning when, at the
foreclosure sale of the mortgage held
by the United States, the road was pur-
chased by the committee of eastern cap
italists formed for its organization.
The full amount accruing to the
United States from the sale cannot be
given exactly, but is estimated to be
SIS, ,065, ,74S.40. 1t was impossible to de-
@feFmine the full amount at the time OF
sale for the reason that the monthly
statement made by the secretary OF the
treasury to the management of the
Union Pacific on the 1st of every month
was not available today, and it was
4 found necessary to estimate some items
although it is admitted by both sides
! that the estimates are approximately
correct. The amount due the govern
Enent is made UP as follows:
Principal of debt, $27, 1885, ,512.
Interest paid by the government up te
! Sept. 80. 1897, $50, 1880, ,SS637.
Interest accrued by Sept. 80 and still
unpaid, $2S6,147.69.
!; Interest accrued in October, $95, 1882. Sc
Total due the government, s5S, 44S
92S.61.
Against this are the following credits:
Cash and bonds in sinking fund, $1S,-
1s2, 2,446.53.
Estimated credits for the quarter end
ing Sept. 80, and for the month of Oc-
tober, including government earnings
are the interest on bonds in the sinking
fund, amount not yet credited, s3S4,-
1S0.21.
Total credit, $1s, 565, ,64674.
Total debt of the railroad to the gov
ernment, $5S,44S, ,92s61.
Total credit of railroad with the gov
ernment, $751; ,646.74.
Balance and amount bid by reorgan-
tSation committee, $39, 1888, ,2S1.S7.
The sinking fund bonds sold for $13,-
645.250.S9.
Total bids by reorganization commit
tee, $53, ,52S ,532.76.
The amount earned by the road dur
ing the quarter ended Sept. 80 and dur
ing the month of October is estimated
but Is practically correct, and as the
government will simply retain the cash,
crediting the amount on the bids of the
committee. the amount to be turned
over as consequence of the sales is
S58, ,065, ,74S.40.
After the conclusion Of the sale Cen
eral Gown, the representative of the
government, was assured by the COM
mittee that if the amounts were not ac-
curately figured, should they differ from
the figures given above, whatever may
be lacking will be paid by the committee
and will in no way be allowed to inter-
fere with the confirmation of the sale.
There was no opposition to the COM
uaittee and no bids We're offered against
theirs.
The sale of the road was in itself one
Of the most tame and uninteresting per-
formances possible to imagine. 1t was
advertised to take place in front of the
Union Pacific freight house at the juno
ton of Ninth and Jones streets at II
O'Clock, and it was just one minute after
that time when Master in Chancery
Cornish, auctioneer, took his place on a
low stone step in front of the Ninth
street entrance. For over an hour a
crowd had been gathering to witness the
sale, and with great difficulty Cornish
was able to get sufficient room to enable
him to work. Finally he jammed him
self back into a corner of the doorway,
with one shoulder against the door and
the other against brick wall and pre-
pared for business.
The crowd not over 500 all told, packed
so closely around the doorway and up
to the front of the center of the building
that the members of the Reorganization
Committee, the men who came out to buy
the road, We're unable to see anything or
hear word of what was going on.
Packed into the hall, leaning against
the banisters, squatting upon the stairs
or standing Wearily in the center of the
floor were all the members of the COM
mittee. Receiver Mink at an upper win
dow, leaned out to watch the proceed
ings below. Those of the committee and
connected with it present We're: Re
ceivers John w. DOane e. Ellery Ander-
son, Gen. Louis Fitzgerald of the Reor-
ganization Committee and Winslow S.
Pierce, it's attorney and wizard, who
evolved the scheme of reorganization;
Alexander Millar of Boston, Secretary
and Assistant Comptroller of the com
pany; Hon. John Sheridan, Maryland.
government director of the road: Cen
eral Solicitor Kelley and General Gown.
tuc government representative, JACOB
r. Schiff, Boston; Marvin Hughitt, Chi
cago; T. Jefferson Coolidge, Jr., Boston,
and Lawrence Greer assistant.
Cornish carried under his arm large
portfolio bound with regulation red tape.
and soon the crowd gave him room to
extend his arms. He united the strings
and drew forth number of papers. Sc
lecting one he replaced the others ana
holding it out, said:
"Gentlemen, I am here to sell certain
railroad properties in pursuance of a
decree of the United States Circui:
Court. I will now read description OF
the property to be sold and when have
finished reading l will be prepared t.
receive BIDS
Then he unfolded the notice of sale
which was very long, being about four
columns of agate type, and read it,
Close to his left hand was Lawrenc.
Greer, with a copy of the notice in his
hand, who followed the reading of the
Master in Chancery very closely. He
was the only member of the Re-organiza-
tion Committee or those connected with
1t who saw the proceedings from first to
last
The reading of the notice took just an
even forty minutes, and when it was evil
dent that Cornish was through the last