The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1897-12-11
TnE PACIFIC RAILWAYS.
should Government Become "a utddes
for the Kansas Pncifcf


The Union Pacific railway, main line,
was sold under the decree OF the United
States court for the district or Nebraska
on the ist and "a OF November OF this year.
The amount due the government consisted
OF the principal OF the subsidy bonds. ST.
236. 6l2 and the accrued interest thereon.
S3l. Ills. making the total indebtedness
$5S,i4S 223 70 The bid at the sale covered
the hrst mortgage lien and the entire mort
gage claim or the government, principal
and interest
The sale of the subsidized portion or tho
Kansas Pacific line. upon which the gov
eminent holds second mortgage len.
has been postponed at the instance OF the
government TO December l6. 1891. The debt
OF this division OF the Union Pacific railway
20 the government on November l. 1897.
was the principal OF the subsidy bonds
So. 10000, and the unpaid and accrued IN
terest thereon, Sc, 626 800. 3s. making a total
or Si2 929, 6g033 The sale OF this road was
originally advertised for November 4. but
for the purpose or securing the utmost
public notice OF the event IL was postponed
until December 10 and a second adver-
tisement OF the sale was made. by the
decree OF the court the upset price on the
sale OF the Kansas Pacific Will yield to
the government the sum or y2.5O0,OO0 over
al prior liens, costs and charges. IL no
other or better bid u made this sum is
all that the government Will receive on lts
claim OF nearly yl3 900. 600 The government
has no Information as 10 whether there
will be other bidders or better bid than
the minimum amount herein stated. The
the government shall under the authority
given Il by the act OF March 3, 1897, purchase
VF leuetm ine Ioau IN the event that
bid Is not made by private parties covering
the entire government claim.
To qualify the government 10 bid at the
sales VIII require deposit or $500 600 as
follows; In the government cause $500. OO0.
and IN each OF the frst mortgage causes
3ZUOOO0, and In the latter the deposit must
be IN cash. Payment at the sale is as
follows: Upon the acceptance OF the bid.
a sum which with the amount already
bidi the balance In installments OF rs per
cent, ~ ~ ana ~ days after the conflrma-
ton or the sale. The lien on the Kansas
racine prior 70 that OF the government
est amounted TO f7,2si ,6fSli The govern
mentl therefore, should Il become the hiph-
est bidder, VIII have TO pay the amount OF
inc hrst mortEage Hen. believe that under
this, and ln absence OF any action by COM
gross, ! shall direct the secretary OF the
treasury TO make the necessary deposit az
required by the courts decree 10 qualify
as a bidder and 90 bid AZ the sale a sum
which Will az least equal the principal of
the DEBT due the government; but suggest
IN order 10 remove all controversy. that an
amendment Of the law be Immediately
passed explicitly giving such powers and
appropriating IN general terms whatever
sum Is sufficient therefor
In so important a matter as the gov
railroad property which II perforce must
conduct and operate, feel constrained TO
lay before congress those facts for its
consideration and action before the COM
mind that the government should not per-
init the property 10 be sold az "A price which
VIII yield less than onc-half OF the nrin-
cipal OF It's debt, and less than one-fifih OF
nut whether tho Fovernme emf rather tbsn
accent less than It's claim, should become n
bidder, and thereby tho owner OF the prop-
erty, submit TO the congress for action.