Willmar tribune., 1897-02-02
READY TOFORECLOSE
THE GOVERNMENT TO TAKE I'M.
MEDIATE ACTION

Regarding tho Pacific Roads-Attorne,
General and Reorganization Com ,nittes
Sligo an Agreement-Minimu Of Over
s47'ooo, 900 in CASH Guar r'sesd the
Government. ~'.:: :.
WASHINGTON. Jan. ss.-Attoruey
General Harmon has givea out the fol.
lowing statement of ths agreement
with the reorganization committee of
the Union Poetic railroad.
Upon tho defeat of the funding bill
In the house the president directed the
attorney general to commence fore.
closure proceedings against the Union
Pacific Railroad company, first making
the best arrangements obtainable for
the protection Of the governments in.
forests Following the lines indicated
IN his last report the attorney general
began. negotiations with the reorgan.
ization com mittee On Thursday
=. An Agreements Wa. Made
which will result in immediate steps to
foreclose. The chief subject of the ne-
gotiations was the protection of the
government against risk of sacrifice of
its claim by a sale at price which
would leave nothing substantial aftor
paying prior liens. This protection is
now assured by a guaranty that the
government shall receive on it's lien on
the aided portions of the Union Pacific
and Kansas Pacific lines, including the
sinking fund, not less than $45, 754, 900.
The sale will be public, so that the gov.
ernment will receive the benefit of any
higher bids up to the full amount Of it's
claim, principal aud interest The
cum of
Four a. nd a .HalT Million Dollars
was on Thursday deposited with the
United States Trust company of New
York by General Louis Fitzgerald,
chairman of the committee, as security
according to the terms of the agree
ment: The committee agree to bid par
for the sinking fund if it is desired to
cell it at any time before the fore
closure sale.
bills in equity have been prepared,
signed by the attorney general and
Hon. George Hoadley. special counsel,
and forw arded to St. Louis, where they
will on Friday be presented to Judge
Sanborn. who has Jurisdiction in all
the districts and whose consent to their
fling is necessary. because the receivers
in charge of the property are made par
ties defendant. - ~ -.
May Be Higher Bids.
,:''1t is believed that there will be
higher bids than the sum guaranteed,
but if not an estimate shows that, with
the amounts already received from the
company, the government will at least
realize a. sum equivalent to the princi:,
pal of the bonds with interest at about
2 l-3 per cent from their issue to the
average date of their maturity. or about
8. 45 per cent from date of issue to Jan.
/, 1897.
1.-The minimum of $45, ,75o, 900 guar
anteed the government is in cash., so
that all transactions with the property
will terminate upon the completion Of
the foreclosure sale. The course to be
pursued with respect to the Central
1AcAac has NOT JET peeR oesermlneQ.
Official Circles Satisfied. !,
In cfficialscircles the agreement is re-.
-garded as highly advantageous to the
government. Although the interest
which the government has paid and
will continue to pay until the last of
the outstanding bonds mature was at
the rate of Is per cent, the figure oh.
tanned by the attorney general is re-
garded !. as very liberal For many
years the governments money in.
volved in the Pacific railroads has not
been regarded as an investment and
the interest payments have not been
looked upon other than as an expense
The settlement of the matter, there
fore. without further trouble or ex.
pense, even at the figure guaranteed,
is looked upon with much favor.