Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1897-11-06
UNDER THE HAMMER.
Union Pacific Railroad Is Sold
at Auction.
MIA In by the REORGANIZATION Coma
mittec-Governmcnt VIII Receive
over S0S,UOO,O 900 from the Hond
-Trnnsaction LIS MT Omaha.

-Trnnsnction Is MT Omaha.
Omaha, Neb., Nov. 2.-The interest OF
the United States government in he
Union Pacific railroad terminated az
11:45 o'clock Monday morning when, at
the foreclosure sale of the mortgage
held by the United States, the road was
purchased by the committee of eastern
capitalists formed for it's reorganiza-
ton. The full amount accruing to the
United States from the sale cannot be
given exactly, but is estimated to be
S5s,065,74s.40. 1t was impossible to de-
tcrmine the full amount at the time OF
sale for the reason that the monthly
statement made by the secretary of the
treasury to the management of the
| Union Pacific on the first of every
month was not available Monday, and
IL was found necessary 10 estimate some
items, although 1t is admitted by both
sides that the estimates are approM-
mately correct. The amount due to the
government is made up as follows:
Principal of debt, s27,236,512; interest
paid by the government up to September
| 30, 1897, S30,S30, 81 interest accrued by
| September 80 and still unpaid, $286, ,147.6S;
| interest accrued in October, $95.3S2.56; total
| due the government, $5S, AS, ,92S45. Against
| this are the following credits: Cash and
bonds in sinking funds, SIS, 1872, ,466. SO: esti-
mated credits for the week ended Septem-
ber 80 and for the month of October, in
Guiding government earnings and the In
| terest on bonds In the sinking fund, amount
| not yet credited, $3S4, ,lS0. 21; total credit,
| SIS, SOS 64O.74; total debt of the railroad to
the government, s5S. 92S.61; total credit
of railroad with government, SIS, ,565 646.74;
balance and amount bid by reorganization
committee, $39.SS3 ,2Sl.s0. The sinking fund
bonds sold for s13,645, ,25O.S9 total bids by
reorganization committee. $53. .52S, ,59276
Theamount earned by the road during
the quarter ended September 80 and
during the month of October is esti-
mated, but is practically correct, and as
the government will simply retain the
cash, crediting the amount on the bids
OF the committee, the amount to be
turned over as a consequence of the
sale is $5s 1905, ,74S.40.
After the sale was concluded, Gen.
Gown, as the representative of the gov
ernment, was assured by the committee
that if the amounts were not accurate
ly figured or should differ from the
figures given above whatever may be
lacking will be paid by the committee
md win in no way be allowed to inter-
fore with the confirmation of the sale.
Thererwas no opposition TO the commit
tee and no bids were offered against
theirs.
Under the terms of sale, the purchas-
ers have 90 days in which to pay over
the full amount of the purchase money,
and that part of the transaction will
be carried out in New York in the flu
ture. The government has now the
sinking fund of the road and the
amount of the guarantee check put up
by the reorganization committee. This
is just about ten per cent. of the full
purchase price of the road. The MEM
bers of the committee had nothing to
say after the sale was over.
Attorney Winslow said that it was
possible that the committee might have
a statement to issue later on, but just
> now he was not certain whether il
would be issued or not.
Regarding the future management
, of the road he had nothing to say. but
it is practically certain that it will for
the time being be left in the hands of
4 the present receivers, who will run II
as they have been running it with the
sole difference that they will be re-
: spousible to the reorganization conf
: mittee instead of to the government
When the committee has perfected al
= of it's arrangements it will relieve them
The future head of the road will be S
Fl. H. Clark, the former president of the
road, if his health will permit him tc
n take the position. He had been expect
s ed at the sale. but was confined to hi
q home in ST. Louis by illness.
J. The idea of uniting the Atlantic and tn
q Pacific coasts by q system of railways i
:, said to have been first given public ex
Il preston in the Emigrant, a weekly pape
n published at Ann Arbor. Mich. from No
N article advocating the railway appeare
February 6, 1882. and 1t was eagerly takel
y up and discussed by variouS newspaper
y and periodicals.
ate June 20. 1862, by a vote of 25 to s. was tn
actual starting of the Union Pacific. TIL
house passed the bill by vote OF lOl to 2
and four days later President Lincoln mad
Is 1t law by atfixing his signature. A char
S. ter for $l00. 100000 was given the corporatio
ia and a land grant of 20 900, 900 acres attached
The company was formally chartered Jul
n q 1862 with authority to construct rail
s. way from Omaha TO the eastern boundar
b. | of the state of California.
:, The first II miles of the road were com
VI pleted September 25. 1865. and the road wa
IS | completed to its junction with the Centrf
Pacific at Promontory Point. Utah. May II
1863. The meeting of the two roads wa
duly celebrated. Gov. Leland Stanford.
as California. president of the Central Ps
:, cific, was present, as was Vice Presider
Durant of the Union Pacific. Ties were iai
~ for the rails, and when they met the la:
C. spike was driven. Telegraph wires wei
Of connected, so that each blow OF the d.
scendlng sledGe was reported instantly
'e all the large cities from the Atlantic TO II
y, Pacific The last spike was of gold and wa
ne driven home with silver sledge, wielde
-, alternately by Gov. Stanford and MIR. d.
~ rant Celebrations in honor of the con
petlon of the road were held in most OF II
large cities of the union
The road was operated by the officers III
"a I'll October l3. 1898. when Il passed into Il
va hands of receivers. During the receive
-, ship 1t has dwindled from system thi
IL comprised 1900 miles of railroad and 80
Int miles of water communication down 10