The record-union., 1897-10-28
The SALE Of The
UNION PACIFIC.
Expected There Will be Sharp Com
petition for the Road.
Two Certified Checks Deposited With the
Master in ChanCeTy.
The Reorganization Committee, it
is Said, VIII Bid seventy-one
Million Dollars, the Full
Amount of the Governments
Lien, if the Sale is Permitted
to Go On.

OMAHA, Oct. 27.-The Union Pacific
sale will take place as scheduled. From
absolutely authentic sources it was
learned that two certified checks for
$2,000,000 each were deposited with
Judge Cornish, Master in Chancery, at
the United States National Bank to-
day They come from the Sage syndi
cate and the Reorganization Commit
tee.
1t is said at Union Pacific headquar-
ters that the sale will occur as arrang-
ed, the Government having received as
surance that it shall receive the full
amount of its mortgage, 81, ,000,0 600, if
the sale is permitted to go on.
1t is asserted that there will be
sharp competition between the Sage
syndicate and the Reorganization Com
mittee.
MKENNA CONFIRMS REPORTS.
WASHINGTON, Oct. 27.-Attorney-
General McKenna to-day confirms the
statements heretofore made by the AS
sociated Press as to the recent offer of
the Reorganization Committee and its
acceptance by the Government. by
which the full amount of the Govern
ment's claim against the main line of
the Union Pacific road, principal and
interest is guaranteed. This amount is
something in excess of $5S, 900, 600, and
includes outstanding Government
bonds issued in aid of the road to the
amount of $19, ,076,512 Of this sum S15,-
919512 becomes due January 1, 1898,
and So, 157 900 on January 1, 1899.
Whether or not the Reorganization
Committees original increased bid of
$4,000, coo holds good to a proportion
ate share as to the Kansas Pacific road
is an open question. The Master in
Chancery fixed this amount at approx
imately $5,000,000 and the contention
undoubtedly will be that the guarantee
offer as to this amount holds good.
This question, however, is regarded
as of little or no consequence, as it is
confidently expected that at the Kan
sas Pacific sale, which no doubt will
take place December 18th. the Reorgan-
5zation Committee viii bid Up to thu fU.i
amount of the Governments claim and
the first mortgage bonds. Their in
terests. it is said, would compel them
TO do this.
If by any chance, however, the COM
mittee bid should fall short of the full
amount of the Governments claim, it
is almost certain IflaI the government
itself, acting under the authority con-
ferred by the Act of 1887, will be pre-
pared to bid in the property No such
contingency, however, it is stated, is at
all likely to arise, and the statement is
made from official sources that the net
result of the deal with the Reorgani-
zation Committee will undoubtedly be
the realization Of the full amount of the
Governments claims against both the
Union Pacific and Kansas Pacific roads.
The next move of the Government
toward a final settlement of the whole
bond-aided railroad question, it is said
will be the institution of proceedings
against the Central Pacific road. The
Government has contended that this
road is already in default, and there
fore subject to foreclosure, but in any
event, it is said the road must default
on the first of next January. On the
first of the present month the Central
Pacific's debt to the Government ag-
gregated SCI .S24. .463, OF which amount
$50, ,354 .345 Is unpaid interest and the
remainder principal In aid of this
road the Government now has out
standing $40 S11, ,120 in bonds, of which
S10,614, 100 fall due January 1st next
and 50, 1917 600 on January 1, 1899.