The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-07-30
Union Pacific to BE Sold.


way under the foreclosure proceedings in
stituted against it by the United States
government were passed upon by Judge
Walter Sanborn in the United States Court
at Omaha yesterday. There was no objec-
ton to the Ames-Dexter decree, and, after
a few corrections had been made in. the
printed copy, it was passed on by the court.
The entrance of the government decree
drew forth vigorous debate between ex-
Governor Hoadly, special counsel for the
United States government, and Winslow S.
Pierce counsel for the reorganization COM
mittee. The debate was on the right of the
court to reserve to the United States all
rights of the government not expressly
stated in the decree. 1t was decided in
favor of the government. The upset price
under the first mortgage will be 500, 637, ass.
Judge William d. Cornish, of st. Paul, Will
act as special master in the matter. He
Will sell the main line, the 1,O34 miles of
road from Council Bluffs to Ogden and it's
immediate branches in this city. The date
Of sale will not be fixed until twenty days
much time to the Union Pacific Railway
Company to redeem the property. The date
OF sale and other matters connected with
the sale will be fixed by Judge Cornish.
Similar DEGREES will be entered in Council
Bluffs and later in the States of Wyoming,
Colorado, Utah and Kansas.
The entrance of the DEGREES of sale drew
together an assemblage of as many prom
inent judges, attorneys and counselors as
the bench with Judge Munger and passed
on the DEGREES. The government was rep
resented by ex-governor Hoadly, of Ohio,
now OF New York city, and by General
John c. Cowen, of this city. Winslow S.
Pierce of New York city, who is said to
have evolved the scheme of reorganization
OF the Union Pacific with Lawrence Greer,
looked after the interests of the Dexter
Ames trusteeship of the Union Pacific first
mortgage. r. S. II L, Of Omaha. as oc ated
with Mar. Pierce, was also on hand. Three
of the receivers of the Union Pacific system
were in neutrality-suspicious. w. Mink, John
NJ. Doane and Z. Ellery Anderson
1t was after l o'clock when the formal
tiles were completed and Judge Munger
adjourned court. The attorneys in the case
the decree to conform to the changes made
by the court and the papers were then filed.
The decree for, the first mortgage bond
holders covers forty-four printed pages. 1t
rectes the history of the road with the
several acts of Congress governing the
same, the issue of the different series of
bonds and the litigation leading up to the
suit for foreclosure 1t is then decreed and
ordered that all the property and rights
or the company shall be sold at auction
to the highest bidder upon the mortgaged
premises at the freight station of the rail-
road company in the city of Omaha, on
Date to be fixed by the special master.
notice of the sale is ordered published
at least once week for four consecutive
weeks in at least one newspaper in New
York city, Boston, Omaha, Denver, Chey-
enne and Salt Lake City. The receivers of
the road are ordered to file within ten days
of the entering of this decree an approx
mate statement of the amount of money
in their hands the amount Of moneys due
to them and ali their liabilities due from
the operation Of the mortgaged premises.
The decree appoints VIM d Cornish as
special master TO make the sale and he is
given power to postpone the sale from day
10 day if circums tances require. Prospective
bidders are required to deposit with the
sum of 81 000 0G0 and the successful bidder
must deposit within five days after the sale
q pledge that he will make his bid good.
No bid Will be accepted for a less amount
than $50 631 435 The purchaser may pay for
the property in cash or in cash and first
mortgage bonds. and the amount remaining
after the application of the two deposits
made must be paid as follows: Twenty-Five
per cent. within thirty days after the con-
frmation of the sale; rs per cent. in forty
days % per cent in fifty days and % per
cent. in sixty days. Payments may be made
in bonds at the value of the principal and
the interest due. The money received from
the sale is to be used first for the pay
ments of the first mortgage bonds, and sec
Ond, If there be q surplus, to the payment
of any debt due the government The pur-
chaser pays all costs of the case, the ex-
penses of the sale, compensation of the
master balance due the receivers on salary
and unpaid Indebtedness of receivers in
CURED during the management of the prop
erty.
The deere in favor Of the United States
is similar in form to the one for the first
mortgage bOndhoiders except that it pro-
vides for sale of the property subject to
the prior liens represented in the other de-
cree. 1t provides for a double sale, to wit:
The subsidy bonds of $27235512 with inter-
est amounting to $50 525, $50. making a total
of $5l, 62 430, the upset price being 1923 900 600:
the other is the sale of $15,645. $50 50 in bonds
fund. which cannot be sold for less than
par value.