The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-10-27
MORGAN STAYS TO WATCH.
Organization of U. P. Syndicate in
London Detains the Finarcier.


London, Oct. 27.-The first attennnt Il
organize a syndicate in London for the
| purchase of the Union Pacific railroad
| having the appearance of substantially
! IS being made by Coates Son &. Co
| stock and share brokers' A swarm of
| cheap American and European promoters
has infested this city since it became
| known that the property would be put I'D
| at auction, but their efforts could not be
! considered seriously.
| Coates, Son & Co. is a financial house
| of the highest standing, which has had
| railroad interests in Canada and has sold
| Canadian and American bond issues in
Europe. The concern became interested
in the Union Pacific sale and is said to
be organizing opposition syndicate.
The chief obstacle to be overcome was
the short notice given by the court, notice
much too short to allow the maturing of
plans for securing the necessary capital.
The plan of Coates, Son &, Co. was COM
municated to the United States consul,
General Osborne, who, thinking that a
better price would result from fostering
the competition, eabled to Attorney Cen
eraI McKenna yesterday that another re-
liable bid might be made if the sale were
postponed, adding: This effort to Sc
cure the property, looking to the repu-
tation of the parties concerned, is IN
doubtedly an honest one
The only member of the Coates firm who
was accessible declined to discuss the
project.
J. Pierpont Morgan declined to discuss
the matter He said however, that he
did not expect to sail for New York to-
day, although booked by the Teutonic
He intimated that he did not know when
he would return.
Truth says: "A deal of hard lying is
evidently going on concerning the Union
Pacific railway. Probably some efforts
are being made to promote a new syndi- |
cate, if only for blackmaiIing purposes. /
But the original syndicate is very power |
full, apparently undisturbed and confident !
that it will be the only bidder at the fore |
closure sale. It's successful competition |
viii mean very considerable recovery in
Union Pacific shares. Large option deals /
have occurred lately with that in view
The Times in its financial article says:
1.-The considerable sales of Union Pacific
shares yesterday We're caused by what is
as a distinct breach of faith in
United States conduct of the foreclosure.
The reorganization committee deposited
10 per cent of their bid. It is contended
that the attorney generals threatened
action is a departure from the spirit of
the engagement, whatever legal techni-
,ality may be advanced in support of it.
1t is probable, however, that the commit
zee will defeat the attorney general by
ouying the main line. paying off the full
government claim and abandoning the
Kansas Pacific division"
The Standard, in its financial article,
on the report that the reor-
committee is prepared to add
g 600. 600 to its bid for the Union Pacific
Dad without altering its reorganization
Ian at all, says:
IAN indirect light is thrown on the wide
cope for robbery provided by this plan.
he total profit may be estimated at any
hing between five and ten million pounds
terling. according to the success with
7hich the new securities to be created
re sold.'