The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-10-27

LONDON, Oct. 26-The first attempt to
organize syndicate in London for the pur-
chase of the Union Pacific Railway having
the appearance of substantially, is being
made by Coates, Son & Co., stock and
share brokers' A swarm of cheap Ameri-
can and European promoters has infested
the city since 1t became known that the
property would be put up at auction, but
their efforts could not be considered Sc
riously. Coates, Son & Co. is financial
house of the highest standing, which hag
had railroad interests in Canada and has
sold Canadian and American bond issues in
Europe The concern became interested in
the Union Pacific sale and is said to be or
ganizing an opposition syndicate. The
chief obstacle to be overcome was the short
notice given by the court, notice much too
short to allow the maturing of plans for Sc
curing the necessary capital
The plans Of Coates, Son & Co. were
communicated to United States Consul
General Osborne, who, thinking that bet
ter price would result from fostering the
competition, cabled to Attorney General
McKenna yesterday that another reliable
bid might be made If the sale were post
poned, adding: This effort to secure the
property, looking to the reputation of the
parties concerned, is undoubtedly an honest
one" The only member Of the Coates firm
who was accessible this evening declined
to discuss the project.
Joseph Price, secretary of the English
Shareholders Association, said to COR
respondent this afternoon: lit is obviously
impossible for any interest but the reor-
ganizatlon committee to secure the road.
Their syndicate is prepared TO pay the en-
tire indebtedness If necessary to secure 1t.
Moreover, the reorganization committee
controls practically all the first mortgage
bonds, and those could be transferred un-
der the terms OF sale in part payment OF
the bid. The reorganization committee rep
resents practically all the shareholders, as
$SoO0,OOO worth of stock has been already
deposited with the Bank of Montreal under
the committees control"
Pierpont Morgan declined this evening to
discuss the matter in any aspect. He said,
New York tomorrow although booked by
the Teutonic. He intimated that he did not
know when he would return.
Truth says: "A deal of hard lying is evil
IDENTIFY going on concerning the Union Pa
citic Railway. Possibly some efforts are
being made to promote a new syndicate,
if only for blackmailing purposes. But the
original syndicate Is very po yerful ap-
parently undisturbed and cOnfiC ent that il
will be the only bidder at the foreclosure
sale. Its successful competition will mean
a very considerable recovery in Union Pa
cific shares. Large options dealings have
occurred lately with that In view.
The Times in its financial article will
say Tomorrow THE considerable sales OF
Union Pacific Railway shares yesterday
(Tuesday) We're caused by what Is regarded
a distinct breach of faith in United
States Attorney General McKenna's con-
duct of the foreclosure proceedings. The
reorganization committee having deposited
10 per cent. of it's bid, it Is contended that
the attorney generals threatened action Is
q departure from the spirit OF the engage
ment whatever legal technicalifies may pe
advanced In support of II. 1t Is probable,
however, that the committee will defeat the
attorney general by buying In the main
line, paying off the fun government claim
abandoning Kansas Pacific
sion"
The Standard, in it's financial article COM
mentng on the report that the reorganiza-
ton committee is prepared to add S. 600 900
to it's bid for the Union Pacific Railway
without altering the reorganization plan at
ALL says: AN indirect light is thus thrown
on the wide scope for robbery provided by
this plan The total profit may be es-
tinated at anything between E5,000 900 and
f10 000.001 according 10 the success with
which the new securities to be created are
sold''