Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-12-06
Army and one from the medical officers
of the Navy.
PACIFIC RAILWAYS

Army and one from the medical officers
of the Navy.
PACIFIC RAILWAYS.
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.
236,512. and the accrued interest thereon.
S"l,2ll,1n15, making the total indebted
ness sos. AS 23.75 The bid at the sale COW
cred the first mortgage lien and the entire
mortgage claim of the government prin-
cipal and interest.
The sale of the subsidized portion of the
Kansas Pacific Line upon which the Gov
eminent holds a second mortgage lien. has
been postponed at the instance of the Gov
eminent to December &c. 1897. The debt
of this division of the Union Pacific PAN
way to the Government on November
1897, was the principal Of the subsidy
bonds s6.3o3.ooO. and the unpaid and ac
crued interest thereon, $685., 69O33 maxi
ing a total of ST., 800 69O33.
Inc sale OF this road was originally adj
Vertlsed for November f. but for the DUR
pose OF securing the utmost public notice
OF the event 1t was postponed until De-
cember ID and second advertisement 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 Govern
ment the sum of s., 10000 over all prior
liens, costs and charges. II no other or
better bid Is made this sum is all that the
Government will receive on its claim of
nearly $13OOO,OOO. The Government has no
information as to whether there will pe
other bidders or better bid than the
minimum amount herein stated. The cues
ton presented therefore is: Whether the
Government shall under the authority
given it by the Act of March 3, 1887, pur-
chase or redeem the road in the event that
bid is not made by private parties cover
ing the entire Government claim. To quail.
fly the Government to bid at the sales will
require deposit of 100000. as follows: In
the Government cause 100000 and in each
Of the first mortgage causes 100000, and
in the latter the deposit must be in cash.
Payments at the sale are as follows: Upon
the acceptance of the bid a sum which
with the amount already deposited shall
equal fifteen per cent Of the bid; the bal
ance In installments of twenty-five per
cent thirty, forty and fifty days after the
confirmation of the sale. The lien on the
Kansas Pacific prior to that Of the Gov
eminent on the 3Oth July, 1897, principal
and interest, amounted to $7.2s1 .O4s.11. The |
Government, therefore, should it become |
the highest bidder, will have to pay the |
amount OF the first mortgage lien.
believe that under the act Of 1887 1t has |
the authority to do this and in absence OF |
any action by Congress I shall direct the |
Secretary of the Treasury to make the /
necessary deposit as required by the Courts /
decree to qualify as q bidder and to bid /
at the sale a sum which will at least equal 1
the principal OF the debt due to the Gov
eminent; but suggest in order to remove <
all controversy that an amendment of the
law be Immediately passed explicitly giving /
such powers and appropriating In general /
terms whatever sum is sufficient therefor.
In SO important q matter as the Govern
ment becoming the possible owner Of rail-
road property which II perforce must con-
duct and operate. feel constrained to lay |
before Congress these facts for its consid-
GRAFTON and action before the consumma-
ton OF the sale. 1t 10 clear to my mind
that the Government should not permit the
property to be sold ut . price which will
yield less than one-half Of the principal OF
its debt and less than one-fifth Of Its entire
debt. principal and interest But whether
the Government. rather than accept less
than its claim, should become q bidder and
thereby the owner Of the property. sub
NIT to the Congress for action
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