The herald., 1897-10-26
THE RAILROAD RE0RGANIZERS
MAKE USELESS OPPOSITION TO
THE MOVE
The Alleged Reason for Delay Is the
Hope of Securing More Bidders
for the Great
Property

WASHINGTON, D. c., Oct. 25.-Mc-
Kenna's decision to postpone the sale Of
the Union Pacific property is regarded
here as an indication Of weakness on the
part of the administration. 1t was con-
fidently expected that the sale would
come off on schedule time, November 2,
but today's events prove conclusively
that Huntington is again to have
chance to get his nefarious funding bill
through congress.
THE COMMITTEE NOTIFIED
NEW YORK, Oct. 25.-(By Associated
Press.) The Union Pacific reorganiza-
ton committee has made the following
announcement: 1.-THE attorney general
has notified this committee that he pro-
poses to ask the court for an adjourn
ment of the Kansas Pacific and Union
Pacific railway property foreclosure
sale until December 10, so as to postpone
final action until after congress shall
have met"
This action was, no doubt, taken to
free the administration from embarrass-
ment. The committee, however, has
reached the conclusion that it is to the
interest of the security holders to push
the reorganization movement without
further delay, and the committee will,
therefore, oppose any adjournment or
the sale, and, if necessary, will bid in the
system for the full amount of the gov
ernment's claim.
MKENNA'S REASONS
WASHINGTON, Oct. 25.-Attorney-
General McKenna, when shown the
statement of the reorganization commit
tee, said that he had notified it of the in
tention to postpone the sale, and said
that the government is desirous to have
the sale open to all bidders, and for
that reason desired a postponement, as
it had reasonable assurance that there
would be other bidders than the reor-
ganization committee. He declined to
state what propositions had been re-
ceived or by whom made, but it is GER
tain that a sum is expected to be real
lied considerably in excess of the guar
antee offer of the committee.
MORE SYNDICATES
NEW YORK, Oct. 25.-Indications
point to the formation of a second syn
dicate to bid for the Union Pacific rail-
way at the foreclosure next month, but
this syndicate is entirely distinct from
the much-advertised one attributed to
Russell Sage and General Thomas,
which both of these men deny having
gotten up.
Two certified checks for $1,000, 900 each
have passed through prominent banks,
made out to the order of w. D. Cornish,
special master in charge Of the Union
Pacific sale, and one of those conversant
with the reorganization plans stated
that these checks would probably form
the basis of a second bid, as it is neces-
sary as a condition to bidding to make a
deposit of 10 per cent beforehand as .
guarantee of good faith.
The reorganization committee made
it's deposit months ago.
BARLOW'S OPINION
SAN LUIS OBISPO, Oct 25-In reply
to a message from the New York World
asking for an expression of opinion on
the stay of sale of the Union Pacific rail-
road, as asked for by the attorney-gen-
eral, Congressman G.. A. Barlow tele-
graphed the following reply tonight:
II am opposed to any deal between the
administration and any syndicate.
These private deals appear to be reek-
ing with fraud, and in view Of the near
approach of the regular session of con-
gress it would be criminal on the part os
the administration to forestall congress-
sional action. Congress should thor
oughly investigate and proceed accord
ing to the provisions of the Thurman
act. c. A. Barlow
(The act of May I. 1878, known as the
Thurman act, recites among other things
that the United States had by way of loan
to the Union Pacific Railroad company
issued s27, ,236,512 of bonds. on which the
United States had paid over $4,000. 900 in
terest over and above all reimbursements,
and said corporation had issued and dis
posed of it's own bonds equal to the
amount so issued to it by the United States
and secured the same by mortgage, which
were. if lawfully issued and disposed Of a
prior and paramount lien. for which and
other reasons recited in the preamble OF
said act it was provided that the net
earnings mentioned in the act of 1892
should be ascertained by deducting from
the gross amount of its earning the nec-
essary expenses actually paid in the year
in operating the same and keeping the
same in repair and also the sum paid by
it within the year in discharge of the inter-
est on its first mortgage bonds. whose lien