The Monte Vista journal., 1897-10-16
UNION PACIFIC SALE.
TERMS OF THE COMPROMISE
Attorney General MeKenna Issuss State
meat o. he Agreement Nsds s-Thinks Il
the Beat to BE Ohtainsd.

Attorney General MeKeana Issues . State
the Beat to BE Obt.insd.
Washington, Oct. 0.-The attorney
general to-day gave out the following
statement regarding the sale Of the Tn
ion Pacific railroad:
There seems to be a misapprehen
sion Of the action Of the previous ad
ministration In regard to thePacific rail
roads. There was no agreement to sel
the roads or the sinking fund of tht
Union Pacific.
I'm consideration Of the appearance
OF the United States In the foreclosure
proceedings, already commenced, and
the prosecution Of lts own mortgage, Il
was guaranteed bid Of $l5. 706, ,Os8 a,
the sale, which should he ordered by
the court. over and above the amount
Of the first mortgage. This amount In.
cluded the sinking fund and SIS, 800.
600 In addition.
There was no formal agreement. I,
consisted Of letters between the reor.
ganlxatiOn committee and separate
counsel Of the government and Att0r.
ney General Harmon. all Of which
were published In Senate document 81,
Fifty-fOurth Congress. second session.
''The agreement. as l have said. goes
no further than to provide for the ap-
penrance Of the government In suits
brough; for the foreclosure OF the first
mortgage bonds and bringing suit Of
foreclosure for it's own.
1.-The sale of the property was land
necessarily must be , by the direction
Of the court. aS In other foreclosure
suits, with the whole world for bid
derH.
''The appearance was made and the
suits Instituted. ns agreed before thu.
advent OF the present administration.
These suits therefore. II had to nc.
cept. and II has endcavorcd to secure
such decree as 1t believed the govern
ment under the laws Incorporating the
railroads was entitled to.
''It may he disputable as to whether
the agreement TO go Into court should
have been made. 1t is not dixputablc
M to what the government, after II
WAS In the court, could do. There.
like any other sultOr. the government
was subject 10 the orders OF the court.
I mean. Of course. subject TO the or
ders OF the court nv q creditor. Az
sovereign. It's powers could not Ike M
fected, and have not been by the de-
crees. We think. therefore. that the
action Of the government; and the si;u-
alton are very plain. 1t has not sold
Its interest. II has enabled interests
to he sold ut public auction to the gc-
organization committee. or to amy com
mittee or to any body or association
which. or who. mny bid the highest.
In whnt ! have said do not mean
to imply criticism Of the previous nd
ministration. What l, did. II no doub;
did on mature. reflection and In sin-
ccrcxt judgment. and its action was rec
commended by both receivers. who hnd
been appointed upon the application
of the United States, and WINS also
unanimously recommended by the five
government directors.
Now as to the relation Of the gov
ernment to the decrss-s: They, M rs.tl-
alCrcd. were In many respects grattfy-
Ing. but In other RESPECTS were not as
the government strc:luOnsly c0ntentied
for. For instance. the Omaha bridge
mortgages. amounting to about 81.
.TO.OOO. were adjudged to IN. superior
TO the lien Of the government on that
part Of the road between Omaha and
Council Rlutfa. and. In addition. thc
money and as~sts In the hands OF the
rtcelver accruink from the operation
IL the roads were ordered to ie sold
Instead Of being reserved to meet
deficiency Judgment expected to be OBJ
iaincd by the government. This
amounted to more than &2.6O0.O0O.
This. OF course. wOuh become Impor.
mlt II the price hid RI thc sale should
net equal the xovefyiment'a lien.
Dissatisfied with the DEGREES. thcr,.
FORE. the government considered the
propricty II nm appeal The rcnrRnni-
zation committee. learning this. came
forward with an Insrea sed bid of ever
x@.HD.OnI. making the total 81 their
guaranteed bid &iO.On.mO instead Of
$l5.sA.WM. nj Increase Of xt.2ts.0tl.
This incrsasc cmovesi the objections
to the decrecs. 40 fur as the money
contentious wrr concerned In nll
else the dccrc~ were J,sst and xatIsfac-
iIry. Under these circumstance mn
spDeal did not seem justified.
1tcgurlIng u higher bid. the prospect
of II seems ms grnt now as II would
I. later. Thcxc COnsIslern tiona deter.
mined III" government. II m,a~s te NJ
mCmisred tlint the gOvernncnts lIe,,
!s second one second 10 hrst mort.
cage "f GS.Hn.0D, The advantage Il
has secured. therefore. Ia. TO repeat,
snmewhat thar At tl,~ saie, unsser thr
DEGREES Of foreclosure their will be q
bid for the roasia Of Atty millions of
dollars over and above the hrst mort.
Enee. and. i's.~i,ie~. the t,-nesit of ab.
anlnte frss-tiosn n cssMlsstitiou at thu
sn'e. Thy government may. their fore.
ssct'r~ Its whole claim through q high.
~r bid. u 10 sure of 4in.mO. .0A and
mia amount. IN connsrtIoa with the
payments alr~adv made. viii nay the
princillal Of fhe ilctN iAlce aScs