The record-union., 1897-10-27
UNION PACIFIC FORECLOSURE.
SALE WILL PROCEED WITHOUT
INTERFERENCE.
The Reorganization Committee
Will Bid the Full Amount
Due the Government.

NEW YORK, Oct 26.-The Reorgani-
cation Committee of the Union Pacific
Railroad to-day received an acceptance
from the Attorney General of the Unit
ed States of an offer of an amount
equaIing the full claim of the Govern
ment against the main line of the
Union Pacific Railroad, which was
some $5S,0O0,000. Therefore the sale of
the road win proceed without interfer-
ence, it is assumed.
FULL CLAIM TO BE PAID.
WASHINGTON, Oct. 26.-Although
the Government officials decline either
to affirm or deny the report Of its ac-
ceptance of the new proposition Of the
Reorganization Committee of the Union
Pacific Railroad there is no reasona-
bic doubt Of its accuracy. This prop
Osition is understood to be an increase
of the original guarantee bid of 500
600, 600 to sum sufficient to cover the
fun amount of the Governments claim
against the Union Pacific road proper,
which on October 1st aggregated $5S,-
O6I, ,39S. This includes the principal Of
the debt, which amounts to S21 ,236, ,012
and the balance of the interest paid by
the United States, amounting to $30,-
3S0. $50. This represents the full
amount of the Union Pacific's obliga-
tions to the Government.
The sale Of this line will be proceed
ed with, as originally intended, about
November 1st
AS to the Kansas Pacific road, the
committee withdraws its guarantee,
and consents to a pOstponement of the
sale TO any date to suit the convenience
OF the Government. This action, it is
understood, leaves the Government in
the same position with respect to the
Kansas Pacific as before the negotia-
tions were instituted, and in this situ-
alton the Government may, If it de-
sires, postpone the sale indefinitely.
The debt of the Kansas Pacific to the
Government aggregates nearly S13,00O,
GOO, of which S6,0330 900 is principal
and the remainder unpaid interest.
Whether the Government will ask the
court to order a sale of the Kansas
Pacific on December 18th cannot be
stated, but should it so decide, it is
understood that no objection will be
raised by the Reorganization Commit
tee.
The net result of the new arrange
ment, so far as concerns the Union Pa
ciffc, is regarded by the officials as
highly advantage to the Govern
ment, as it secures all that it has ever
claimed to be due lit, and renders it
practically certain that a very large
share of the debt of the Kansas Pa
cific will be realized whenever it may
desire to consent TO its sale.
WILL BE SOLD MONDAY.
ST. PAUL (NIinn.), Oct. 26.-The main
line of the Union Pacific will be sold on
Monday at Omaha. The notice of a
motion for a postponement which was
to come up Thursday, has been form
ally withdrawn. and the sale will pro-
ceed as scheduled.
General John C. Gown, Government
Attorney, said this afternoon: The
Government has Withdrawn the motion
to postpone the sale. The Reorganiza-
ton Committee has guaranteed the
payment of the full amount of the lien
on the property. The main line will be
sold Monday at Omaha. The sale Of
the Kansas division, by agreement, has
been postponed until December 18th