The record-union., 1897-10-19
REPORT ON THE UNION PACIFIC.
STATEMENT FROM REORGANI-
zATIoN COMMITTEE.
The Government Assured That It
Will Realize $5O,OOO,OOO or
More for It's Interest.

NEW YORK, Oct. 1S.-The Union Pa
cific Reorganization Committee has
submitted a review of its petition and
of the conditions surrounding the re-
organization under it's charge. In re-
spect to the terms of the decree of
foreclosure, the committee claims to
have had no purpose whatever and to
have made no suggestions, except in
the cases of two of the provisions,
that requiring the deposit to be made
five days in advance of the sale and
that extending the time for the COM
plete payment of the purchase over a
period of sixty days after the confirm
alton of the sale.
THE provision for such an extended
time" the committee says, was de-
sired because of the magnitude of the
transaction and to secure reasonable
terms Of payment consistent with such
early delivery of the property as must
afford basis for carrying ou the
large financial engagements involved" "
The provisions Of the DEGREES fixing
five days in advance of the date of
sale for the deposit of earnest was
desired because for a period of more
than eight months prior to the sale the
committee had upon deposit the sum
of 81, soc, 900 to secure a guarantee
bid, and competing bidders could act
in full knowledge of the committee s
plans and provisions.
The statement reviews the work of
the Reorganization Committee during
the past two years, touching upon the
subsidy debt, the defeat of the funding
bill in Congress in 1896 and the cause
of foreclosures.
The present conditions are reviewed
as follows;
The present solution of the business
relations of the Government to this
property is the result of a process by
which all less favorable solutions to
the Government have been eliminated.
1t is the only solution open to the Gov
ernment under existing legislation of
Congress. 1t is a solution which has
received the approval of two Admins
traIions. 1t was recommended by both
of the receivers who were appointed
for the purpose of caring for the inter
ests of the Government, and it was
unanimously recommended as we'll by
the five Directors who were appointed
to serve the interests of the Govern
ment.
When the committee. took charge of
the reorganization of the Union Pa
cific Railway the first mortgage bonds,
having priority to the lien of the Gov
ernment the divisional mortgage bonds
We're selling at heavy discounts and but
small comparative value was attrfbut-
ed to the second mortgage Of the Gov
ernnent. To-day the first mortgage
bonds are worth a premium and the
Government is assured that it will re-
alize $50,000,000 or more for it's in
terest.
The security holders of the company
are satisfied. The Government is sat-
isfied with this outcome The enter
prise Of the Government in promoting
the construction Of the Union Pacific
Railway will. from financial and ma
terial standpoints prove to have been
most profitable.
Under the conclusion of the matter
which now approaches their pecuniary
and material results will have been ac-
complished and secured and the polit-
ical relations of the Government to
this property Wall have been brought
to an end.