The record-union., 1897-01-21
For the Full Discharge of the Obliga-
tions to the Government.
The Plan Said to be for the Attorney
General to Move for the Sale of the
Property Under Foreclosure, on
Agreement That the Government
Receive FOrty-Five Million Dollars
Out of the Sum Bid.

NEW YORK, Jan. ZU.-Ine unQer-
standing in Wall street to-day was that
an arrangement had been completed
with the administration at Washington
for the full discharge of the obligations
of the Union Pacific to the Government
and that the reorganization of the COM
pany would proceed without delay.
1t was said that the plan was for the
Attorney General of the United States
to move for sale of the property un-
der foreclosure, on an agreement that
the Government should receive out of
the sum bid for it $40, 600 900. The deal
with the Government was said to have
been closed yesterday.
Attorney General Harmon left Wash
ington for New York this afternoon to
consult with Ex-Governor Hoadley, who
is retained as counsel for the Govern
ment in Union Pacific affairs, and also
to consult with members of the Reor-
ganiZation Committee and members of
the syndicate formed to underwrite the
reorganization plan.
No foreclosure proceedings will be in
stituted until General Harmon is salts
fed that the Governments interest Will
be fully protected, and to assure him
self on that point is the object of his
trip. The papers in the foreclosure pro-
ceedings have been prepared, however,
and may be filed any time. 1t is scarce
ly likely any legislation bearing upon
the question will be enacted at the pres
ent session, although a determined eff
fort is being made by the advocates of
an extension of the Indebtedness to Sc
Ill Il fFass
the settlement of the matter by COM
mission of Cabinet Officers
THE HOUSE COMMITTEE HEAR
INGS
WASHINGTON, Jan 20.-J. c. Coombs
of Boston, general counsel for the Cred
it's Communication Company of Sioux
City, Ia, the association of $50 banks
which has taken so prominent a part
in opposing the Powers funding bill,
appeared before the House Committee
on Pacific Railways this morning, the
hearing being a continuation of the one
last Thursday.
Mr. CoOmbS opposed the Sioux City
and Pacific bill, which the Chicago and
Northwestern Railroad Company is
urging the committee to report to the
House. The bill provides that the Sec
retary of the Treasury shall make such
settlement of the debt of the Sioux City
and Pacific debt as shall seem to be
best for the interests of the United
States.
Mr.. Coombs said that the Sioux City
and Pacific becomes of Importance in
the whole Pacific question, because as
to the controversy as to whether the
Government s lien extends to the termi-
nails at Omaha and Council Bluffs. If
the Governments lien did not SO eX
tend, and the Government should at
tempt to foreclose ON the Union Pa
cific, as now seemed quite probable, it
was likely that the first move the
Union Pacifici would make would be to
shut off the Government from using
the Omaha terminal, and if that We're
done the Government would have no
way of getting across the Missouri
River to the east bank, where the roads
running east could be conencted with.
So long, however, as the Government
retained its interest in the Sioux City
road it could fOreclose with perfect
safety upon the Union Pacific, even if
the company did take away the use of
City road had a bridge which crossed
the Missouri twenty miles above Oma
ha, at Blair. If this company was deep
ly indebted to the Government, and
that was now coming due. the Govern
ment could, when the Union Pacific
took away the use Of the Omaha ter
minals, use the Blair bridge. AT this
point connections could be made with
the roads coming from the east, which
would be as advantageous as the con-
nections which could be made by way
of Omaha.
Mr.. Coombs analyzed the recent Pow
erS bill, and showed the committee that
the representatives from the parts of
the country directly served by the Pa
cific roads had voted almost unani-
mously against the BILL and the North
west had voted the same way, because
the committee had refused to accept
the amendment which he had proposed,
which would provide for the road from
Sioux City to North Platte.