The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-12-07
Railroad Interests.

17HE Union Pacific Railway line was
sold under the decree of the Unit
ed states court for the district ot
III Nebraska on the 2d of November
of this year The amount due the
government consisted of the principal OF
the subsidy bonds S27, 2365l2 and the az
crued interest thereon was S31, ,211, ,711. 75,
making the total Indebtedness $5S AS, ,22375.
The bid at the sale covered the first
mortgage lien and the entire mortgage
claim of the government principal and
interest
The sale OF the subsidized portion of
the Kansas Pacific line, upon which the
government holds a second mortgage lien,
was postponed at the instance of tho gov
ernmcnt to Dec. lG, 1897 The drbt oc
this division of tho Union Pacific Rail-
way to the government on Nov. I. 1897,
was the principal of the subsidy bonds
at $63O3,OOo and the unpaid and accrued
interest thereon, &c. 626,69O.33 making u
total of sl29@2 G0033. The sale of this
road was originally advertised for Nov.
4. For the purpose of securing the ut
most public notice of the event it was
postponed until Nov. lG, and u second
advertise mont Of sale was made. BY the
decree of court the Union Pacific set
price on the sale Of Kansas Pacific will
yield to the govo rnment 81, 500 600 over all
prior liens, costs and charges. If no 9TH
er, or better bid is made this sum is all
the government will receive on its claim
of nearly $l3 100, 900. The government has
no information as to whether there will
be other bidders or a better bid than the
minimum amount herein stated. The
question presented therefor is: Whether
the government shall under the authority
given it by the act of March g. 1907, pur-
chase, 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
sale will require a deposit of s90O,O00, as
follows: III the government cause $500
600, and in each Of the first mortgage
causes 100000, and in the latter the de-
posit must be in cash. Payments at the
sale are as follows: Upon the acceptance
of bid a sum which. with the amount
already deposited shall equal Is per cent.
of the bid, the balance In installments Of
20 per cent, thirty. forty and fifty days
after the confirmation of the sale.
The lien on the Kansas Pacific prior
to that of the government on the 30th Of
July, 1885 principal and interest amount-
ed to S72Sl ,0iS.1l. The government there-
fore should it become the highest bid
der will have to pay the amount of the
first mortgage lien. / believe that under
the act of 1881 it has the authority to
secure the debt due to the government,
but suggest in order to remove all con-
troversy that an amendment of the law
be passed explicitly giving such powers
and appropriating in general terms what
ever sum Is sufficient therefor.
In so apt a manner as the government
becoming the possible owner of railroad
property, which it perforce must conduct
and operate, | feel constrained to lay
before congress these facts for its con-
sideration and action before the consume
nation of the sale. 1t is clear to my
mind that the government should not
permit the property to be sold at a price
which will yield less than onc-half of
the principal of it's debt and less than
one-ffth of it's entire debt, principal and
interest But whether the government.
rather than accept less than its claim
should become a bidder and thereby tho
owner of the property, l submit to tho
congress for action.
The library building provided for by the
act OF congress approved April Is, 1896,
has been completed and opened to the
public It should be a matter of con-
graduation that through the foresight
and munificenCe of congress, the nation
possesses this noble treasure-hOuse OF
knowledge 1t is to be hoped that having
done so much towards the cause of edu-
cation, congress will continue to develop
the library in every phase of research to
the end that it may be not only one of
the most magnificent but among tho
richest and most useful libraries in tho
world.