The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-10-19
Reorganization Committee Submits
a Review OF Its Work.
TO BE NO P0STP0NEMENT
GOVERNMENT WILL NOT INTER
FERE WITH COURTS ORDER.
Unless Something Entirely Unfor-
seen occurs-The Sale VIII Take
Place on November First-Against
the Southern Pacifc-The Latest
Railway News BY Wire

New York, Oct1S-The Union Pa
eific reorganization committee has sub
mitted q review of its petition and Of
the conditions surrounding the reor-
ganization under its charge IN respect
10 the terms Of the decree OF the fore
closure the committee claims to have
had 10 purpose whatever and 10 have
made no suggestions, except IN the
eases of Two Of the provisions, that re-
Quiring the deposit to be made five
days in advance OF the sale, and that
extending the time for the complete
payment Of the purchase over q period
OF 60 days after the confirmation OF the
sale
THE provision for such an extended
iime." the committee says, was de-
sired because OF the magnitude of the
transaction, and to secure reasonable
terms Of payment consistent with such
early delivery Of the property as must
afford basis for carrying out the large
financial engagements involved.
THE DEPOSIT.
THE provisions OF the DEGREES fix
ing FIVE days IN advance Of the date OF
sale for the deposit Of earnest was de-
sired because for a period Of more than
eight months prior 10 the sale the com
mittee had upon deposit the sum OF
S4.5e0 600 TO secure a guarantee bid and
competing bidders could act IN full
knowledge OF the committees plans and
provisions"
The statement reviews the work Of
the reorganization committee during
the past two years. touching upon the
subsidy debt, the defeat of the fund
ing bill in congress in 1896 and the
cause of the foreclosures.
PRESENT CONDITION.
The present conditions are reviewed
sS follows:
The present solution of the business
relations Of TIE government to this
property is the result of a process by
which all less favorable solutions to the
government have been eliminated. 1t is
the only solution open TO the govern
ment under existing legislation Of con-
gress 1t is Il solution which has re-
eeiYed the approval OF two administIa-
lions, Il vas recommended by both
OF the receivers who we're appointed
for the purpose of caring for the inter-
est of the government. and come unan-
ilnously recommended as well by the
five directors who were appointed 10
serve the interests Of the government
when the committee took charge Of
the reorganization of the Union Pacific
railway, the first mortgage bonds hay
ing priority to the lien Of the govern
ment we're scarcely bringing par, the
divisional mortgage bonds were selling
at heavy discounts, and but small COM
paratiVe value was attributed TO the
second mortgage of the government
Today the first mortgage bonds are
worth a premium and the government
is assured that 1t VIII realize S5o,o0o00o
or more for its interest.
SECURITY HOLDERS SATISFIED.
The security holders of the company
are satisfied. The government is sat
is6ed with this outcome. The enter
prise Of the government in promoting
the construction of the Union Pacific
railway will, from financial and ma
feriaI staudpoints, prove to have been
most profitable
Under the conclusion Of the matter
which now approaches their pecuniary
enS material results will have been ac-
conplished and secured, and the politi-
cal evils which have attended the prac-
teal relations Of the government to this
property will have been brought to an
end"