The Roanoke daily times. (Roanoke, Va.) 1895-1897, 1897-01-23

IHE SALE.
Washington, Jan. 22.-The following
statement was given to the press by At
torney General Harmon this evening:
Upon the defeat of the funding bill in
the House the President directed the At.
torney General to commence foreclosure
proceedings against the Union Pacific
Railway Company, first making the best
arrangements obtainable for the protec-
ton of the Governments interests. Fol-
lowing leads indicated in his last mes
saSe, on Thursday an agreement was
made, which will result in Immediate
steps to foreclosure.
1.-The chief object OF the negotiations
was the protection of tie Government
against the risk OF sacrifices of it's claim
by IL scale ut IL price which would leave
substantially nothing after paying liens.
This action is now assured by Il ouaran-
tee 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 Sl5, iJl.
600
1.-The sale will be public. so that the
Government will receive the benefit of
any higher bids up to the full amount of
its claim, principal and interest"
The sum Of sij. 900, 600 cash was on
Thursday deposited with the United
States Trust Company of New York, by
Gen. Louis Fitzgerald, chairman of the
committee, rs security according TO the
terms Of agreement. The committee
agree to bid par for the sinking fund if it
is desired to sell it ut any time before the
foreclosure sale.
Bills in equity have been prepared.
signed by the Attorney General and Hon.
George Hoadley, special counsel, and for
warded to St Louis, where there will, Oh
Friday, he presented to Judge Sanborn,
who has jurisdiction in all the districts,
and whose consent to their filing is nee
essary, because the receivers in charge of
the property arc made parties defendant.
They are original bills, and not cross.
| bills in the pending suit. Whether they
will proceed as independent bills CT be or
dered to stand rs cross-bills in the pend
ing suits will he determined by the Judge,
but, in either event, the result will be
the same, viz: the sale of the property
under the Governments lien, Rs we'll as
under that Of the first mortgage. The
bills will be filed i'll the district courts of
Nebraska, Wyoming, Colorado and Utah.
Separate bills for the foreclosure Of the
lien on the Kansas Pacific are in course
Of preparation. These will be filed in
Missouri and Kansas
The proposed arrangement was submit
ted to the Government directors before it
was closed. They all recommended its
adoption. Their general opinion WAS
thus expressed:
The Government cannot prldcntly
longer deter the settlement of the matter
The Union Pacific system has already
been much curtailed, and its revenues
! have been permanently reduced. Reor.
CARNATIONS of neighboriug properties
have either been accomplished or are in
shape for carly consummation, ana the
breaking up of the Union Pacific system
has been and is steadily progressing.
| eaIt is therefore ineXpedient, if not dam
gerous, to neglect this opportunity of
realizing the sum offered. 1t is believed
that there will be higher bids, but. if not,
an estimate shows that crediting amounts
already received from the company the
Government will at least realize II sum
equivalent to the principal OF the sub.
sidy bonds with interest at about 3 3
per cent. to the average date of their ma,
turity, or about $40 per cent. from date
OF Issue to January | 1897.
The minimum of $40, 475, 900 guarantee
to the Government is in cash, so that all
relations with the property will termi
nate upon the confirmation OF the fore.
''No''iS ''tiS' ht COurSc tO Dc DHFSutu
with respect to the Central Pacific has
not yet been determined
Attorney General Harmon returned
from New York last night fresh from his
|. negotiations with the organization com.
mittcc of the Union Pacific Railway Com.
pany. Prior TO the regull cabinet meet
ing today he explained the plan outlined,
which received the Presidents approval
The Cabinet was told at it's session of
what had been done, but 10 formal action
by that body was taken.
As indicated by the statement, the set.
Element agreed upon with the reorganiza.
ton committee marks the ending of the
relations between the Federal govern
ment and the Union Pacific Company.
It does not interfere, however, with the
right of the government to institute pro.
ceedinSs to protect itself in any phazes in
the situation that may be discovered
later.
So far as the Central Pacific road is
concerned, matters are not in shape for
settling its relations with the Govern
ment, but something is likely to be done
in Che near future.
The reorganization committee of the
Union Pacific Railway Company consists
of Louis Fitzgerald, chairman; Jacob H.
Schiif, r.. Jefferson Coolidge, Jr, Chaun.
cey NJ. Depew, Marvin lIughit and Oliver
Ames.