The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1897-01-29
FIRST STEP TAKEN.
Tho Attorney General Directed to
Begin Proceedings
a gainst the Cnion Pacific Railroad To-,
AFTER lirst Making the Best Arrange
mcnts rossibie for the Protection
Of the Governments Interests.

WAsnlNGToN, Jan. 23,-The follow
ing statement was given to the United
Associated Presses by Attorney GEN
eral Harmon yesterday evening:
Upon the defeat OF the funding bill
in the house, the president directed
the attorney general TO commence
foreclosure proceedings against the
Onion Pacific Railway Co., Iirst maxi
ing the best arrangements obtainable
for the protection of the governments
interests. Following the lines indi-
Gated in his last report, the attorney
general began negotiations with the
reorganization committee. On Thurs
day an agreement was made which
will result ia Immediate steps to fore
close The Chief subjects nf the me-
gotiations was the protection OF the
govern ment AZ ainst the risk Of sacrifice
of its claim by sale at a price which
would leave nothing substantial after
paying prior liens. This protection is
now assured 10y "A guarantee that the
government shall receive on its lien
on the aided portions Of the Union Pa
cihc and Kansas Pacific lines, inciud-
ing the sinking fund, not less than
Si5, 754. 900. The sale will be public,
50 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 81. 800 900 cash
was on Thursday deposited with the
United States Trust Co. of New York
by Gen. Louis Fitzgerald, chairman OF
TIE committee. as security according
TO the terms Of the agreement.
The committee agree 10 bid par for
the sinking fund II il is desired to sell
il at any time before the foreclosure
sale. Chooses in equity nave been pre-.
pared, signed by the attorney general
and Hon. Geo. lloadiy, special coun-
sci. and forwarded to ii. Louis. where
they Will be presented To Judge san
born, who has jurisdiction in all the
districts and whose consent to their
filing IS necessary because the recciv-
ers IN charge Of the property are
made parties defendant. they are
original bills and not cross bills
ia the pending suits Whether
they will proceed as independent
bills in the pending suits viii be de-
termined by the judge, but ia either
event the result VIII be practically the
same--viz: The sale of the property
under the governments lien, as well
as under that OF the first mortgage.
The bills viii be fled in the districts
Of Iowa. Nebraska, Wyoming Colo
RADIO aud Utah. Separate bills for the
foreclosure of the lien on the Kansas
Pacific are in the course III prepa-
ration. These will be filed ia Mis-
souri, and Kansas
The arrangement was submitted
to the govern ment directors before il
was closed They all recommended
its adoption. Their gener. opinion
was thus expressed: The govern.
ment can not prudently longer defer
the settlement OF this matter. The
Union Pacific system has already been
much curtailed and its revenues have
been permanently reduced. lsrorgan.
\ izations of allied and neighOoring
properties have either been accom-
I plished or are in train for early con
\ summation and the breaking up of the
I entire Union Pacific system has been
and is steadily progressing. 1t there
fore seems to US inexpcdient, If not
dangerous, to neglect this opportunity
OF realizing the sum offered and thus
expose the government TO continu
Gus depreciation Of its security.
1t i, believed that there Will be
higher bids, but. il not, an estimate
shows that, crediting amounts all
ready received from the company. tn,
government will at least realize "A sun
equivalent to the principal of the sub
sidy bonds with interest ut about 81
per cent from their issue TO the aver
age date of their maturity, or about
3.45 per cent. from date of issue &c
January /, 1897 The minimum o
Si5 754. 900 guaranteed the government
is in cash, SO that all relations with
the property will terminate upon the
confirmation of the foreclosure an,
sale of the property.
The course to be pursued with re
spect to the Central Pacific has no
yet been determined.