New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-10-10
THE SALE OF UNION PACIFIC
A STATEMENT FROM ATTORNEY GEN.
ERAL M'KENNA
WHY THE GOVERNMENT WILL NOT AppEA.
FROM TIE COURTS DEcREE-FREE
COMPETITION AT THE SALE.

COMPETITION AT THE SALE.
Washington, Oct. s.-Attorney- General McKenna
to-day gave out the following statement relative
to the sale Of the Union Pacific Railroad:
acton Of the previous in pesa arS
10 the Pacific railroads. There was no agreement
sell the Sad The sns Ta Of s InS.
United States In the foreclosure proceedings al.
ssay %ss snd s S 81 Ct s
at the sale which should be ordered by the Court
Ss snS sinking d va:
based on an estimate OF par tor the sinking fund
agreement +, consisted of letters between the
Reorganization Committee and the special counsel
10: So. Livth Congress. second session:
ment in suits brought FOR the terscOsnre Of II.
was to, be and necessarily must be, by the drec-
With with the Whole world for bidders. The appearing:
was made and the suits Instituted as agreed before
suits sui Therefor it had to accept and Il has e
deavored 20 secure such DEGREES as 1t believed the
Government under the laws Incorporating the rail-
TT It may be disputabie az to whether the agree.
not disputable as 70 What the Goyernment after
sutton the Government was subject TO the orders
of the Court ! mean, OF course. subject TO the
powers could not be affected ard have not been. by
the DEGREES We think therefore, that the action
1t has not sold It's interests It has enabled all in
terests to he sold at public auction TO the Reorsani
body or association which who may bid the
highest.
In what ! have said 1 do not mean 10 Imply
criticism OF the previous Administration. What Il
did 1t TO doubt did ON mature reflection and in sim
/ cerest Judgment and its action was recommended
by both the receivers who had been appointed upon
the application OF the United States and Il was al
most unanimously recommended by the five Gov
> eminent directors. Now as to the relation Of the
were in many respects gratifyins-cxceedingy
but in other respects were not as the Government
Omaha bridge mortsageS. amounting to abo oue
$4,000 were adjudsed to be superior to the lien
tween 0i1sha and Council BUNS and in SdSition
the money and assets I'm the hands of the receivers
dered 10 be sod instead of being reserved NEE,
a deficiency Judgment expected - be obtained by
10000 This of course. would become important
Il the price bid at the sale should not equal the
Dissatisfied with tie DEGREES. therefore. the Gov.
eminent considered the proprety Of an appeal, and
The REORGANIZATION Committee. learning this
came forward with Increased BID Il over $4,000
d Ssnead inc Of 'ss % ger gq nc4ea:e o. PIG
, 81 This increase removed the objections TO the
cerned In ali else the DEGREES weEe just and satis.
factory Under these circumstances an appeal did
Regarding higher bid the prospect OF it seems
as great row as il would be later These con-
sderations determined the Government II must
be remembered that the Governments lien IS a
ond one. subject 10 a first mortgage Of s3300,J0
The advantage II has secured. therefore Is 70 re-
peat somewhat, that at the sale under the DEGREES
~ foreclosure there will be bid for tie roads Of
100000 over ard above the first mortgage ard
besides the benefit Of absolute freedom OF compeii-
ton at the sale. The Government nay. therefore
secure It's Whole claim through a higher bid II 4,
sure Il SO.o0,D and this amount On connection
With the payments already madel viii pay the prn.
c!pal OF the deb. twice over