, 1897-10-07
GOSSIP OF THE SALE.
1T IS THE BIGGEST EVER RECORD
ed WITH THE EXCEPTION
OF ONE.
A Brief History OF the Case and Some
thing in Relation to the Early His
tory OF the Government Lien-The
First Move Toward a Sale Was Made
in 1895-The Second Sale.

The forthcoming sale OF the Union
Pacific road is the general subject OF con-
versation in financial and railway cir
c!es in Omaha, as we'll as other western
centers, says the World-Herald.
Win two exceptions there has never
been held che sale OF an individual rail-
way system that equaied tina: OF the I'm
ion Pacific. The exceptions were those
Of the Northern Pacific and the Atchi-
son. the former being larger and the lat
Ter about equal.
In 1865 the government extended aid
10 the projectors OF the great transcon>
"tinental line to assist in putting into
execution the scheme OF construction
which no individual or set OK individuals
had the timidity to take in hand. At
that time the government accepted a
lien on the road as security. Many Ell
forts have since been made to adjust the
claim. but up to a recent date no def-
mite action was had to bring the money
advanced by the government back into
me public treasury.
FIRST MOVE TOWARDS SALE.
In 1895 a bill was introduced in con>
sress which provided for foreclosure
proceedings on the part of the govern
ment against the Union Pacific Railway
company to satisfy the lien OF 1865. For
TWO years, or until just prior to the time
President Cleveland went out Of Office,
nothing had been done. While the bill
was pending President Cleveland In
formed congress that unless steps were
taken to foreclose the lien he would be
compelled TO act. This brought about
the desired steps, and later a decree OF
the court was obtained which provided
for the sale Of the Union Pacific to sat-
isfy the lien.
The lien and interest OF the govern
ment is about $40, O0O, 900. but the gov.
eminent has agreed to take $45, O00, 900
and turn owe the lien. However, an IN,
confirmed report is that the government.
has obtained from the reorganization
committee a concession Of an additional
5 1000, 900 and included in the lien the
bridge at Omaha.
SALE OF THE LIEN NOVEMBER 4.
This is the sale which is to be held
November l at II O'Clock on the plat,
form of the freight house in Omaha.
Special Master in Chancery Cornish
will accept the bids.
This lien OF the government covers
all the main line; also all the rolling
stock. telegraph lines. stations, shops.
terminals, and in fact all that goes to
make up the Union Pacific system as 1t
Is operated between the initial point
and Ogden, where 1t connects with an
other system. The lien OF the govern
msnt does not cover the branches which
have been built Of recent years
THEN THE SALE OF NOVEMBER 2.
After the lien has been disposed OF
The sale will close for the day. Novem>
Der 2 at the same hour Of the day and
at the same place will be held the sec
ond sale, which will be the real sale OF
the Union Pacific. the former being
merely the sale OF the lien. The sale of
November 2 Is to satisfy the first mort
gage. which was given November l,
1865. and cover the same property as
that included in the government lien,
together with additional branches and
equipment.
The decree OF the court Is that the
special master may postpone the sale
from time to time and proceed on any
date, without further notice, with the
sale.
MUST PUT UP 81, O0O, 900 ON EACH.
1t is further provided that in order
10 be a legal bidder for either the gov
ernment lien Or for the property when
sold under the first mortgage that the
would-be bidder must, at least five days
before the sale, deposit with the special
master at his office in Omaha, to guar
antee his good faith as a bidder, the
sum OF 81, 900, 900, one-half OF which
must be in cash and the balance may be
Of first mortgage bonds. This provision
refers to the bid on the sale under the
provisions Of the first mortgage.
The bidder for the government lien
must deposit in cash 81, 900, 900 five daya
before the date OF the sale. While tn,
term cash as generally understood
would mean money in some form, it ap-
pears that the special master under
stands a certified check on any national
bank or an investment company which
he may approve Of to be equivalent to
cash.
At Union Pacific headquarters it Is
said that the real estate advertised for
sale at Omaha is only that embraced in
the right Of way Of the system and doe.
not include other realty.
DOES NOT DISTURB ELEVATORS
In Omaha the only building tina.
stands on the railroad right OF way,
consequently on land which will be sold,
o. Importance, Is the Union elevator,
near Thirteenth street. 1t Is stated,
however. that there will be no molesta.
ton OF the workings OF the elevator
and that without doubt the same Or.
rangement will be made With the nev
company as with the old
Nt---. 81 .