The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-10-28
SALE OF UNION PACIFIC.
THE GOVERNMENT TILL GET DOL
LAR o DOLLAR OF ITS DEBT.
Atte~rney.Genera MoKenna Confirms the Re-
port OF an Increased
ommitte Also Expected to Take tho
Kansas Pacific ana Pay Pull Amount.

Attorsey.Gensra Mckenna Confirms the ho-
port OF an Increased
Committee Also Expected to Take tho
Kansas Pacific ana Pay Full Amount.
WASHINGTON, Oct. 27.-"The problem OF tho
Governments relations to the Pacific railroads
has been solved said Attorney.GcnorM Me-
Kenna to n reporter for THE SUN to-day. 1t
will get dollar for dollar of its debt on tho
Union Pacific. and in consequence of that re-
suit the Central Pacific must, in settlement OF
It's indebtedness. pay the same. 1t cannot cs.
cape from that now. And this administration
thinks it is entitled to the credit of bringing
about this condition OF affairs, Who would
have thought, even AS late as a month ago,
that tho United States would ever get out all
the money she had put into tho Union Pacitici
] venture that nobody except President Nc
Kinley and myself. We started with "A PROPOSE
ton from the Reorganization to pay
SA5, 900, 600 for the roads; to-day 1t agrees to
pay $5s, 900. 900 for the Union Pacific alone.
leaving the Kansas Pacific line TO be disposed Of
separately. At most, If the Kansas Pacific DO
sold at it's owest possible price. under the
terms Of Judge Sanborn's decree, the Govern.
ment stands to lose $1,000 900, a large sum-, 1t
Is true. but. comparatively a small one. But tho
Government will get every dollar of its debt on
that line, as well as that on the Union Pacific.
The Reorganization Committee, Units prospectus.
provides for the placing of over SSO,Oou,ooo or
securities on the Kansas linc-a fair indication,
certainly, OF their idea of its value
The frantic assertions in the Columns of yell
low journal, the AttornCy-Gcncra said, brought
the Government not II single bid. nor even n
tentative proposition, and the fake sNndicateS
exploited in their columns were never men,
toned until after they had been exploded in
official circles.
THE sensational publications have been only
detrimental to the interests OF the Government,
said the Attorney-Gencral The continual as
seriion that the Government had sold the road TO
the Reorganization Committee created the inn
preston that IL was disposed or III advance,
and il has only been within the last two weeks,
was printed in THE Sun, that the interested
parties have come to believe that there was n
show for any one besides the committee. at the
SALE"
Attorney. General McKenna called attention
to another misconceptions arising out OF the
proposition to postpone the sale.
THE Union and Kansas Pacific railroads.
he said, have never been dealt with as one
property, and there has been no division sug-
Rcsted. The Union Pacific properties are 10
be sold next Monday and Tuesday, and the
Kansas Pacific was to be sold on the 9th and
will Coates & Co. buy the Kansas Pacifci'
was asked.
They may buy the Union Pacific" Mr.. Nc.
Kenna answered.. They have until Friday to
them as bidders under the terms of the decree.
1t can be done by telegraph, II they want to.
But / expect the Reorganization Committee will
buy the Kansas Pacific Railroad, as it will the
Union Pacific, and pay the full amount of the
Governments debt for it. They cannot aban-
in underwriting securities for it under the new
arrangement