The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-10-26
UNION PACIFIC FORECLOSURE
Reorganization Committee Doesn't Want
sale Postponed.

sale Postponed.
New'York Oct 25.-The Union Pacific
reorganization committee has made the
following announcement:
the attorney general has notified this
committee that he proposes TO ask the
court for an adjournment of the order OF
foreclosure sale OF the Kansas Pacific
and Union Pacific railway property to
December Is, so as to postpone final dis
position until after congress shall have
met. This action is no doubt taken to
free the administration from embarrass-
men:.
The reorganization committee has,
however reached the conclusion that the
interest OF the security holders, repre-
scented by 1t, and OF the syndicate fur
nishing the funds TO finance the reor-
ganiZation, demand reorganization with
out any further delay. In this situation
the committee contemplates. 50 as to
gain prompt possession OF the Union Pa
cific line, 10 oppose any adjournment OF
the sale of the main line and to bid II
in, IL need be, for the full amount OF
the governments claim. the additional
sum involved in this being about IS ,000,-
600.
As TO the Kansas lines. the foreclosure
of the first liens upon the subsidized
divisions of the Kansas Pacific railway
will be theoretically pressed and when
these foreclosures shall have been &C
complished. the reorganization OF the
Kansas Pacific lines will be completed
as claimed.
Allotments made under the plans Of
the Kansas Pacific holders and amount
ing 10 about 5000, 900 dollars in new
bonds and twenty millions in preferred
stock. will remain reserved for the re-
organization of the Kansas line.
The amount Of new first mortgage
bonds TO be issued for the purpose OF
the reorganization Of the Union Pacific
main line will not exceed seventy mill
lion dollars. and of preferred stock fifty
five million dollars.
mo change in the plan Of reorganiza-
ton is involved in the foregoing"
Washington. Oct. 25.-Attorney Gen.
eral McKenna was shown Jhis state
ment and asked II he mad notified the
committee of his intention, as stated 10
which he replied that ne had: that Gov
ernOr Hoadley, special counsel OF the
government in the case. was directed
last week TO make the communication 70
the reorganization committee. He also
said that the application would De made
TO Judge Sanborn at ST. Paul for the
postponement of sale not of the main
line only, but OF the Kansas division
lines. He further said the government
had been very attentive 10 the situation
and very DESTROYS 10 have a sale open
10 all bidders-one that could not be
complained OF. and for that reason de-
sired the posJpOnement 10 enable bid
ders to prepare and had reasonable as
surances that there would be bidders
other than the reorganization committee
at .he sale.
The attorney general eclined 70 state
what DINER propositions mad been re-
or by whom made. but Il is GER
tain that the sum expected 70 be realiz-
ed is considerable in excess OF the guar
antee OF the reorganization committee. |
That guarantee. the attorney general, !
said, remains in full force. notwithstand- !
ing the postpOnement Of the sale.
No serious opposition TO the cansum- !
nation Of the sale on the par; Of con- !
gress IS anticipated by the department. /
Washington. Oc; 25-Attorney Cen I
era McKenns was with tie president I
FOR a quarter az an hour. presumably in 1
reference 10 Union Pacific railway az 1
fairs. TIE attorney genera. said after 1
leaving the president that there were no .
developments which he wished 20 COM
nunicats = the public. In other quar-
ters Il W.. stated that determination
might come a. any moment in the near
future and that in al probability the
meeting OF the cabinet tomorrow would
bring about definite understanding
PROBABLY final conclusion on The gov
s-nment's course
Secretary Al-er had talk with the
president on affairs in the Klonjike ana
Assistant Secretary Y ne Navy Rose
se.: a,so aa3 a brief interview.
THE NEWS N OMAHA.
Omaha. Oct 25.-Judge u. D. Co-nish.
-pecial master commissioner for the
ale u the Cniln Pacific. and Judge II.
?. Kelley. general solicIror f0- t1e -
.eivers. rad their frs; news p TIE post
,1nement sehe sale from tie Associat-
q Press this morning. They were both
cry much as;onisasi aa9 destined 70
ay anything further than thai The news
vas a complete surprise, an5 completely
pset ITEM. They have no plans II
'1nnectlon WITH the Postpsnsnent They
we're IN consultation Win General Man
ger Dickinson a. TIE time they we're
"a Ar Dickinson aISo declined %
ak