The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-10-26
REQUESTS A POsTPONEMENT.
Government Not Ready for the Union
Pacific Sale.

Government Not Ready for the Union
Pacific Sale.
New York oct. 25-The Union Pacific
reorganization committee to-day made the
following announcement:
The Attorney General has notified this
committee that. he proposes to ask the
court for an adjournment of the fore
closure sales Of the Ksr IS Pacific and
Union Pacific railway property to Dec. 49,
so as to postpone final disposition until
after congress Shall have met. This ac-
ton is no doubt taken to free the ad-
ministration from embarrassment.
The reorganization committee has, how
ever, reached the conclusion that the in
terest of the security holders. represent
ed by it, and of the syndicate furnishing
the funds to finance the reorganiza ton,
demanded reorganization without any fur
ther delay. In this situation the commit
tee contemplates. so al to gain prompt pos
session of the Union Pacific line, to op.
pose any adjournment of the sale of the
main line, and to bid it in, if need be, for
the full amount of the governments claim,
the additional sum involved in this being
sS, ,0OOO 900.
As to the Kansas lines the foreclosure
of the first liens upon the. subsidized di-
visions of the Kansas Pacific railway will
be- energetically pressed, and when the
foreclosures shall have been accomplished
the reorganization of the Kansas Pacific
lines will be completed as claimed Allot-
...1,,+. v,,ado r,,1ar Tho mans to LCopcor
Pacific holders and amounting to about
$15OOO,OOO in new bonds and $2O,O000O0 in
preferred stock, will remain reserved for
the reorganization of the Kansas line.
The amount of new first mortgage bonds
to be issued for the purpose of the reor-
ganization of the Union Pacific main line
may not exceed $70,0O0O00, and of preferred
stock S55 100000 No change in the plan
of reorganization is involved in the fore
going.
Attorney General McKenna was shown
this statement, and was asked " he had
notified the committee of his intention as
stated, to which he replied that he had;
that Gov Hoadley, special counsel of the
government in the cases, was directed last
week to make the communication to the
reorganization committee. He also said
that the application would be made to
Judge SdnDOTn at St. raul, LOF lne post
pOnement of the sale, not of the main
line only, but of the Kansas division lines.
He further said that the government had
been very attentive to the situation, and
very desirous to have a sale open TO all bid
ders-one that could not be COM
blamed of-and for that reason,
desired the postponement to enable bid
ders to prepare, and he had reasonable
assurance that there would be bidders
otbar than the orgaufZation comuittaa
at the sale.
The Attorney General declines to state
what other propositions had been received,
or by whom made, but it is certain that
the sum expected to be realized is con-
siderably in excess Of the guarantee offer
Of the reorganization committee. That
guarantee, the Attorney General said, re-
mains in full force, Notwithstanding the
postponement of the sale. No serious op-
position to the consummatlon Of the sale
on the part Of congress is anticipated by
the department.