The San Francisco call., 1897-10-28

lnSlnuatlOnS which are being made VIII
fall fat, and that those who are making
them will be the ones to regret their work.
From President Mckinley down the ad-
ministration offic ials say that the Govern
ment will get every dollar OF its claim on
both ROADS which is about S25. 600, 600 more
tnan the original guarantee made BY the
reorganization committee to the last ad-
M nistration. The high officials feel that
they have saved that much money to the
treasury, and openly say so.
Another fact which kills the stories OF
the Government being defrauded in the
Kansas Pacific is that there were separate
DEGREES for the sale of the Uaion ard Kan
sas Pacific. The Kansas Pacific deer Z pro-
vided for the sale of that road on Novem-
Der 3. and D. The decree further pro-
vided that an upset price of $12, 800 OO0-
the amount of first N ortgage and Govern
ment principal-must be bid, or there
would be no sale. The Government will
see that the road brings sufficient to cover
every dollar coming to it.
The Attorney General said to-day that
under the act of 1887 the Government had
full right 10 BID the road in for the
amount due it, and the intimation is
broad that before the road Will be sacTl-
feed to any body the Government will be-
come bidder. 1t Will bid only SO far as
lis claim goes, as that is as far as the law
will permit. II is believed that the Presl-
ASlb oAIO AlAO1 al nave SOhlS ~ -
full understanding on this score, and that
the Government stands ready 10 become
the owner of the Kansas Pacific before ! l
Will permit itself 10 lose one cent. But
the Government has no idea that 1t will
have to do SO. 1t knows that the interests
OF the reorganization committee in the
Kansas Pacific are too great 10 permit the
Government or any private concern to own
| the road.
Another feature presents itself, If the
Government feels disposed to take advan.
| tage OF 1t. That is as to the liability OF
the rtorganization committee to with
draw from its guarantee as to the Kansas
| Pacific. The Acknowledgement refuse to
discuss this feature, because he is satisfied
| that there will not be occasion 10 bring
| the question up.
Tee reorganization com mittee is deeply
| interested in the Kansas Pacific. It has
an interest in nearly all the first, third
| and fourth securities. For that reason 1t
is sure to be a bidder. But the Govern
ment has assurances that there will be
other bidders. Capitalists have been or
| ganizing in London to bid on the proper
ties, and by December Is will have time
| 20 compete their organization. London
dispatches, however, indicate the belief
| there that the reorganization committee
cannot afford to let any concern outbld
1t on the Kansas Pacific or the Union
| Pacific.
Acknowledgement McKenna does not
! think The Government would have been
! justified in postponing the sale OF the
! Union Pacific after it had secured all tnai
was coming TO ii. To have delayed the
sale might have resulted disastrously IN
many ways.
Speaking about the entire transaction, 8
Cabinet officer who is fully posted on the
| matter, said that the sale was one OF the
| greatest financial achievements that ha:
been accomplished n many years. The
Governments action throughout had
been as clear as 3 crystal, and credit wa:
due not only to this administration but
| to the last one for its successful com pie
| ton. For one year every one has known
! that the property was 80 be sold, and the
talk and clamor that delay should be
| had now to give other syndicates chance
10 bid was baseless and unwarrantab bic
The sale was still an open one and those
| who had the same chance as the reor'
ganization committee to raise the pur
! chase money during the last year haC
the same chance to-day.
The sale is not being made by the Gov
ernment, but by the court. Having gone
into the courts, the matter went entirely
out of the Governments hands, aud even
Congress could not delay the sale by any
action it might take.
The decree ordering the sale was issued
by United States Judge and he alone
could order a postponement. The court
has decided against the Government and
the only question by which it could be
| appealed was the decision as to the lien on
the Omaha Bridge. This has been decided
against the Government and on this slim
point would rest any appeal by the Gov
eminent.
The next move of the Government to
| ward final settlement of the whole bond
aided railroad question, 1t IS said, will be
the institution of proceedings against the
Central Pacific road. The Government
has contended that this road is already IL
default and therefore subject to fore
closure, but in any event, II is said, th'
road must default on the 1st of next Jan
uary.
On the first of the present month tn
Central Pacific debt 10 the Government
aggregated $61, 824, 46S, OF which amour
$35 939, 343 is unpaid interest and the re
mainder principal, In aid of this roa
the Government now has outstandin
$19, S11. 120 in bonds, of which $10614, u
tails due on January 1 next and So, 1877, 90
Oh January l, 1899.