The San Francisco call., 1897-10-06
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WASHINGTON, d. c., Oct. 5.-Attor-
ney-GeneraI Mehenna had another ex-
tended conference to-day with eX Gov
ernor Hoadley in regard to the pending
Union Pacific foreclosure sale. With ref
erence to the statement cabled from Lon
don last night, to the effect that an Eng.
Iish syndicate had forwarded bid for
the Union Pacific property, in competi-
iion with that of the Reorganization com.
mi:tee. the Attorney General said that
although no foreign bid had vet been re-
ceived IL was fact that the Government
had received inquiries from foreign sources
and be had no doubt the capitalists of
this country and England would see to it
that the property is not sold at price
much below it's value. The Government,
he said. had entered into no agreement or
understanding with the reorganization
committee, or any one else, by which they
were to have the road at $4,000 600, or
any other sum.
The property, he said, would be sold
under foreclosure proceedings to the
highest bidder, and the only connection
the Government had with the reorgan;za-
tion committee was that the latter guar
anteed that if the Govern ment would loin
in the foreclosure proceedings the COM
mittee would guarantee that bid of ut
least $45, 600 900 would be received for the
Governments equities. Under this pledge,
the good faith OF which was secured by
deposit of $1,000, 900. the Government
joined in the suit, which resulted in an
order by the court for the public sale of
the property on November 1.
CHICAGO, ILL, Oct. 5.-A special to
the Post from Washington says: 1t can
now be stated bv authority that the Gov
eminent will realize abou $51, 900, 600 from
the sale of the Union Pacific, which is So
900 600 more than the figure named in the
terms of the contract entered into on be-
half of the Treasury Dv Mr.. Cleveland.
1t appears lhat the princ1pa. leverage ex-
erted by the Attorney General was t g
Omaha bridge. He claims that the Gov
ernment mortgage covered TINS prop
erty, which had been held by tn reorgani-
cation committee to be an outside asset
Attorney General McKenna positively re-
fused to give way to uermlt clear title to
the property sought to be bought under
foreclosure, except at the price OF sur
rem der on this point and he was equally
unyie lding in other directions. Inasmuch
as the success of the reorganization scheme
de pended absolutely upon clear title no
o,her course was open to the would. be
purchasers, except to raise their bid.
Attorney General Mckenna believes
that other bids will be received hi her
than the offer by the reorganization COM
mittee, but he does not say from what
source the offers will come, and there is
a suspicion that the expectations OF the
Governments representatives are not well
grounded.
Ex-senator Br:ce and some associates
had an ambition at one time to obtain
possession of the Union Pacific, and it is
barely possible that they may be again
moving in the matter. If they are hey
have kept the matter very quiet, as Wall
street is in ignorance of any such purpose.
Representatives OF the reorganization
committee say that matters are too far
advanced for new parties TO mix in, and
that they have no fears of any tn ng of the
sort occurring. Just the same they will
be very glad when the deal is closed up
and they can take their property with an
unclouded title to the money kings for
such backing as may be needed. 1t is
estimated that $50, 600, GOO Will be needed
10 put the Union Pacific upon q paying
basis and to develop il as it should be.