The Bourbon news. [volume] (Paris, Ky.) 1895-19??, 1897-12-10
THE PACIFIC RAILWAYS.
Should Government Become a Bidder
for the Kansas Pacific!

The Union Pacific railway, main line,
was sold under the decree OF the United
States court for the district of Nebraska
on the 1st and I'd of November of this year.
The amount due the government consisted
of the principal of the subsidy bonds. ST.
SCI, 21l, LIS, making the total Indebtedness
SIS AS 223. rs. The bid at the sale covered
the first mortgage lien and the entire mort
gage claim of the government, principal
and interest.
The sale of the subsidized portion of the
Kansas Pacific line, upon which the gov
eminent holds a second mortgage len.
has been postponed at the instance of the
government to December 16, 1897. The debt
of this division of the Union Pacific railway
to the government on November /, 1897.
was the principal of the subsidy bonds,
$6,SOS.OOO, and the unpaid and accrued in
terest thereon, Sc, 626, $50. SO, making total
of $12, 929, 500. 33. The sale of this road was
originally advertised for November 4, but
for the purpose OF securing the utmost
until December 16 and a second adVer-
tisement of the sale. was made. By the
decree of the court the upset price on the
sale of the Kansas Pacific will yield to
the government the sum of S2,500.000 over
all prior liens, costs and charges. If no
other or better bid is made this sum Is
all that the government will receive on its
claim of nearly S13, 000,0 900. The government
has no information as to whether there
will be other bidders or better bid than
the minimum amount herein stated. The
question presented therefore is whether
the government shall under the authority
given it by the act of March 3, 1887, purchase
or redeem the road in the event that a
bid is not made by private parties covering
the entire government claim.
To qualify the government TO bid at the
sales will require deposit of $9UO,UO0, as
follows: In the government cause $5OO, 600,
and in each or the first mortgage causes
$780, 900, and in the latter the deposit must
be, in cash. Payment at the sale is as
follows: Upon the acceptance Of the bid,
a sum which with the amount already
deposited shall equal Is per cent. of the
bid; the balance in instailments of Is per
cent, 30 40 and so days after the confirma-
ton OF the sale. The lien on the Kansas
Pacific prior 10 that of the government
on the Both of July, 1897. principal and inter-
ment, therefore, should it become the high
est bidder, will have to pay the amount of
the first mortgage lien. believe that under
| the act of 1887 it has the authority to do
gress, shall direct the secretary of the
treasury to make the necessary deposit as
required by the courts decree to qualify
! as bidder and to bid at the sale O sum
the debt due the government; but suggest
| in order to remove all controversy, that an
amendment of the law be Immediately
passed explicitly giving such powers and
apprOpriatlng in general terms whatever
| sum is sufficient therefor.
In so important a matter as the gov
! eminent becoming the possible owner of
| railroad property which ii perforce must
| lay before congress those facts for it's
| consideration and action before the con-
! summation of the sale. 1t is clear to my
mind that the government should not per-
nit the property to bel sold a price which
will yield less than one-half Of the prin-
| cpal of it's debt, and less than one-tifth Of
! its entire debt, principal and interest.
But whether the government, rather than
accept less than its claim, should become a
bidder, and thereby the owner of the prop
! erty, ! submit to the congress for action.