The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-10-15

and its exposure led to change Of the
Presidents plans.
The next selection for the office of At
torney General was Joseph McKenna, of
California, who had been named as
| trustee Of the este of Leland STAN
| ford, one of the big Four" of Pacific
Railway magnates.
SURE THING FOR THE POOL.
Terms Of Sale That Make Competition
Impossible-The Bankers Pool to Get
$20,00O,000 Fee.
| istration it became necessary to push
the Union Pacific reorganization so the
dates of the sales of the various
| branches or parts were fixed for early
in November, month prior to the as
sembly of Congress.
Only thirty days were allowed to in
tervene between the announcement oil
the decree of sale and the date of sale.
Each bidder was required five days in
advance of the sale of deposit $2,000,O0Ol
in cash. III must pay % per cent of his
bid, OF practically $29,000,OOO in cash,
thirty days after the sale and an inter
val of thirty days additional, or sixty
days in all, was allowed for the payment
or all the inStallments of the purchase
money, involving an outlay of perhaps
S115,000,O00, though special provision
was made for anticipating these INSTALL
ments and paying the entire sum at once
If the play Of the reorganizers reauir-
ed it.
BANKERS POOL HAS ALL THE
FIRST MORTGAGES.
Bidders would be permitted to use
first mortgage bonds of the roads in set
Element of it, and it so happened that
the reorganization committee controlled
all Of those bonds. The sale could be
damned through and the papers de-
livered before Congress could meet. No
one will deny that there are very few
bidders who can conveniently carry
around, or raise in sixty days, trifie
of $115, 100000 in cash, or at least, not
without involving trade disturbance. If
all the three big railroads entering
Omaha from the East, except the Chi
eago and Northwestern, were to join
hands and bid for this property they
would encounter impossible conditions
IN the decriee Of sale. 1t, therefore, be-
pete with the Wall street pool, and that
the S25,OO0,OOO profits which had been
anticipated by that pool in this branch
of the deal could be assured.
A sop TO M'KINLEY.
At one time, in the course of the adj
ljuStment of these important negotia-
items, it was represented to the reorgan-
izers that they would strike difficulties
unless they could make it appear that
the present administration had made a
better bargain than the Cleveland Of
ficials, so is was announced on Saturday
last by Attorney General McKenna that
the reorganization committee -camel
forward with an increased bid of 81 ,0OO,-
600, making the total of their guarantee
pool $50,0O0,00O, instead of $45, 745, 059.-
90, an increase of $4,245,941."
The Acknowledgement explained:
''This increase removed the objections to
the decree (of sale) so far as the money
contentious were concerned. In all else
the DEGREES were just and satisfactory.
There will be bid for the roads of
100000 over and above the first
mortgage and besides the benefit of alb
solute freedom of competition at the
sale. The government may, therefore,
secure its whole claim through higher
bid. 1t is sure of fifty millions"
In the governments sinking fund
there is an accumulation of SIT 1862, 900
which the bid will obtain under this ar
rangement. Therefore, the blind pool
will make a net payment ON account of
the governments -vut OF only $50, 94S,-
900 if it gets the road for $50,000000.
The gain to the Wall street pool will,
therefore, be as follows
The Union Pacific company
owed the government. 1872 2S5, 344. 36
The Union Pacihc credits
on this debt are:
Government trans
portatiOn and nav
mcnts on account
of net earnings t2l, 80, 93633
8 hiking fund accu-
mutations. ..... ... TO2,f 0G0 1850 1886 81 |
Present debt I f Union Pacific to
government 49,, ..... 53,7l5,4c8 03 ]
Cash payment to be made by
blind ACKNOWLEDGEMENTS. N.Ms,o uW
Loss to government 800 so 4Os co |