The herald., 1897-10-27
Concerning the Sale Of the
Union Pacific
LITTLE DOUBT ENTERTAINED
OF A PROPOSITION MADE AND
ACCEPTED
There Will Be No PostponemSnt OF
Sale-The Government Will
Get Its Dues
Associated Press Special wire.

Associated Press Special Wire.
WASHINGTON, Oct. 26.-Although
the government officials decline to either
affirm or deny the report Of its accept
ance of the new proposition Of the reor-
ganization committee of the Union Pa
cifc railroad, there is no reasonable
doubt of it's accuracy. This proposition
is understood to be an increase Of the
original guarantee bid of $50.000.000 to a
sum sufficient to cover the full amount
of the governments claim against the
Union Pacific road proper, which on Oc-
tober 1st aggregated $5S,067, 1893. This In
cludes the principal of the debt, which
amounts to 27,236,512, and the balance
of the interest paid by the United States,
amounting to $50. $50, $50. This represents
the full amount Of the Union Pacific's
obligations to the government. The sale
of this line will be proceeded with. a.
originally intended about November lst.
AS to the Kansas Pacific road, the COM
mittee withdraws it's guarantees and
consents to a postponement OF the sale
| to any date to suit the convenience or the
government. This action, 1t Is UNDER
stood, leaves the government in the
same position with respect to the Kan
sas Pacific as before the negotiations
were instituted and in this situation the
government may if it desires, postpone
the sale indefinitely. The debt of the
Kansas Pacific to the government ag-
gregates nearly $13,000,O0O, of which 3d.
O33, 900 is principal and the remainder
unpaid interest. Whether the govern
ment will ask the court to order sale OF
the Kansas Pacific on December 10Th
cannot be stated, but should 1t SO de-
eide. it is understood that no objection
would be raised by the reorganization
company. The net result of the new ar
Irangement SO far as concerns the Union
Pacific, is regarded by the officials as
highly advantageous to the government.
as it secures all that it has ever claimed
to be due it, and renders it practically
certain that very large share OF the
debt of the Kansas Pacific will be re-
allied whenever it may desire to con-
sent to it's sale.
NO PosTPONEMENT
ST. PAUL, Oct. ga telegram from
Acknowledgement McKenna this after.
noon notified the attorneys for the gov
ernment in the Union Pacific railway
case that the sale could proceed as orig
inally planned, arrangements having
been made with the reorganization COM
mitttee that guarantee to the govern
ment its full lien on the property.
Gen. John c. Gown of Omaha and ex-
Governor George F. Hoadley of New
York were in the city to press the mo-
ton for a six-weeks' postponement, no.
ticc of which had been given yesterday
bv Gen. GOWN However, this after
noon came the telegram from the at
torney-gene1al ordering the withdrawal
, of the motion for postponement. This
: telegram was presented to Judge San
born of the United States circuit court.
, and the notice of the motion to postpone
T was withdrawn. By stipulation the sale
' of the Kansas division was set FOR Dec.
E 18TH but the main line will be sold next
Monday at Omaha, as heretofore an
nounced, by Master Commissioner Cor
s nish.
r AN ENGLISH BIDDER
LONDON, Oct. 26.-The first attempt
n to organize a syndicate for the pur-
4 chase of the Union Pacific railway, hav-
t ing the appearance of substantially, IL
{ being made by Comte, Son & Co., share
brokers'
e Comte, Son & Co. Is a financial house
o of the highest standing, winch mas rail-
road interests in Canada and has sold
0 Canadian and American bond issues in
VI Europe The concern became interested
: in the Union Pacific sale and is said to
e be organizing an opposition syndicate.
II The plans of Comte, Son & Co. were
n communicated to United States Consul
lie General Osborne, who, thinking that a
If better price would result from fostering
: the competition, cabled to Attorney
n General McKenna yesterday that an
IS other reliable bid might be made II
IS the sale were postponed, adding: "This
l. effort to secure the property, looking to
/. the reputation of the parties concerned
n is undoubtedly an honest one."
The only member of the Comte firm
d who was accessible this evening de-
J. clined to discuss the project.
l. ]. Pierpont Morgan declined this even-
lie ing to discuss the matter. He said
1t however, that he did not expect to sail
lp for New York, although booked by the
e. Teutonic He intimated that he did not
4 know when he would return.