The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-07-30

Omaha, Neb.. July 29.-Decrees of
sale of the Union Pacific railway under
the foreclosure proceedings instituted
against it by the United States were
passed upon by Judge Walter Sanborn,
in the United States court here this
morning. There was no objection to the
entrance of the Ames-Dexter decree
and after few corrections had been
made in the printed copy of the decree.
it was passed upon by the court. The
entrance OF the government decree
drew forth vigorous debate between
Ex-Governor Hoadiey, special counsel
for the United States, and Winslow S.
Pierce, counsel for the reorganization
committee. The debate was upon the
right OF the court to reserve 10 the
United States all rights of the govern
ment not expressly stated in the decree.
1t was decided in favor of the govern
ment. The upset price under the first
mortgage will be $50, 637 ,450 Judge
William D. Cornish, of ST. Paul Will
act as special master in the matter. He
will sell the main line, the 1,034 miles
of road from Council Bluffs to Ogden
and its immediate branches in this
city. The date Of sale will not be fixed
until 20 days shall have expired, the
court giving that much time to the
Union Pacific Railroad company to re-
deem the property. The date of sale
and other matters connected with the
sale viii be fixed by Judge Cornish.
Similar DEGREES will be entered in
Council Bluffs this afternoon 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 prominent, judges, attorneys and
counsellors as ever met in Omaha.
Judge Sanborn sat on the bench with
Judge Munger and passed on the de-
crees. The government was repre-
scented by Ex-Governor HOadley, of
Ohio, now of New York City, and by
General John c. Cowen, of this city,
WinslOw S. Pierce, of New York City,
said to have evolved the scheme of re-
organization of the Union Pacific, with
Lawrence Greer, looked after the inter-
eSts of the DeXter-AmeS trustees of the
Union Pacific first mortgage R. 5.
Hall. of this city, associated with Mr..
Pierce was also on hand. Three of the
receivers of the Union Pacific system
were in attendance; Oliver w. Mink,
John w. Duoane and E. Ellery Ander-
son.
1t was after 1 o'clock when the for
malitieS were completed and Judge
Munger adjourned court. The attor-
neys III the case spent another hour
correcting the copies of 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 Al printed pages. Tt re-
cites the history of the case with sew
eral 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 of the COM
pany shall be sold at auction to the
highest bidder, upon the mortgaged
premises at the freight station of the
railroad company in the city of Omaha
on a date to be fixed by the special
master. A notice of the sale is ordered
published at least once a week for four
successive weeks in at least one news
paper in New York City, Boston,
Omaha, Denver, Cheyenne and Salt
Lake City.
The receivers of the road are ordered
to file, within ten days of the entering
of this decree, an approximate state
ment of the amount of money in their
hands, the amount of moneys due to
them and all their liabilities due from
the operation of the mortgaged premi-
SEES
The decree appoints William D. Cor
nsh as special master to make the
sale, and he is given power to postpone
the sale from day to day if circum-
stances require Prospective bidders
are required to deposit with the master,
five days previous TO the sale, the sum
of 81, 000, 900, and the successful bidder
must deposit within five days after
the sale a sum equal to Is per cent
of the bid as pledge that he will make
his bid good. No bid will be accepted
for a less amount than $50. 637, 435.
The purchaser may pay for the prop
erty in cash or in cash and first mort
gage bonds, and the amount remain
ing after the application of the two de-
posits must be paid as follows:
Twenty-Five per cent within 90 days
after the confirmation of the sale, %
per cent in 40 days. % per cent in 80
days and % per cent in so days
Payments may be made in bonds at
the value of the principal and the in
terest due.
The money received from the sale is
to be used, first, for the payment of the
first mortgage bonds, and, second, if
there be a surplus, TO the payment Of
any debt due the government
The purchaser pays all costs of the
case the expenses of the sale, compen-
sation of the master balance due the
receivers on salary and unpaid indebt-
ednesS of the receivers incurred dur
ing the management of the property.
The decree in favor of tn United States
is similar in form to the one for the
first mortgage bondholders, except that
it provides for sale of the property
subject TO the prior liens represented
in the other decree 1t provides for
double sale, towit:
The subsidy bonds of $27. 235, 512, with
interest amounting to $50 525, 430, max
ing a total of S57, 1852, 43O. the upset price
being s23. 000, 900; the other is the sale
of S13.645. 250 in bonds in the United
States Union Pacific sinking fund,
which cannot be sold for less than par
value.