The San Francisco call., 1897-01-23


warded to st. Louis, where they will on
Friday be presented to Judge Sanborn,
who has jurisdiction in all the districts
and whose consent to their filing is neces-
sarv because the receivers in charge of the
property are made parties defendant.
They are original bills and not cross bills
in the pending suits. Whether they will
proceed as independent bills or be ordered
to stand as cross bills in the pending suits
will be dete rmined by the Judge, but in
either event the result will be practically
the same, W.: The sale of the property
under the Governments lien as we'll as
under that of the first mortgage. The
pills will be filed in the districts of Iowa,
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 Mis-
souri, and Kansas.
The proposed arrangement was submit
ted to the Government directors before it
was closed. They all ecommended its
thus expressed: The Government can
not prudently longer defer the settlement
of this matter. The Union Pacific system
has already been much curtailed and its
Reorganizations of allied and neighbor-
ing properties have either been accom-
plished or are in train for early consum-
nation, for the breaking up OF the entire
Union Pacific system has been and is
steadily progressing. 1t therefore seems
to US inexpedient if not dangerous to
neglect this opportunity of realizing the
sum offered and thus expose the Govern
ment to q continuous depreciation of its
security
at 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 sum equivalent to the principal
of the subsidy bonds with interest at
about 31s per cent from their issue to the
average date of their maturity, or about
3.45 per cent from ate of issue to January
1, 1897. The minimum of $45, 754. 600 guar
anteed the Government is cash, so that
all relations with the property will ter
inmate upon the confirm mation of the fore
closure sale.
''The course to be pursued with respect
to the Central Pacific has not yet been
determined"
Attorney-General Harmon upon his re-
turn from New York, fresh from his nego-
tiations with the reorganization committee
of the Union Pacific Railway Company,
prior to the regular Cabinet meeting to-
day, explained to President Cleveland the
which received the Presidents approval.
The Cabinet was told at its session what
had been done. but no formal action by
that body was taken.
As indicated by the statement, the set
tlement agreed on with the reorganization
com mittee marks the ending of the rela-
tIons between the Federal Government
and the Union Pacific Company. 1t does
not interfere, however, with the right of
the Government to institute proceedings
to protect itself in any phases of the liti-
CATION that may be discovered later. So
far as the Central Pacific road is con-
cerned matters are not in shape for settling
its relations with the Government, but
something is likely to be done in the near
future.
The reorganization committee of the
Union Pacific Railroad Comdany consists
of Louis Fitzgerald (chairmanl, Jacob II.
Schiff, T. Jefferson Coolidge Jr, Chauncey
NJ. Depew, Marvin Hughitt and Oliver
Ames.
The Central Pacific Company having
paid its interest on both tie first and sec
ond bonds, it is believed that there can be
no default of that company for at least
year hence, or until January l, 1898. The
Department of Justice has the matter un-
der advisement, however, and will decide
in few days what course to pursue in the
matter of the Central Pacific The Senate
Committee on Pacific Railroads in its fa-
vora BILE report of Senator Gears bill for