The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-10-10

Washington, Oct 9.-The attorney
general today gave out the following
statement regarding the Union Pacific:
There seems 20 be a misrepresentation
OF the action of the previous admins
tr2tton in regard to the Pacific roads.
There was no agreement to sell the
roads or the sinking fund of The Union
Pacific.
In consideration of the appearance
OF the United States in theSorecIosure
proceedings, already commenced. and
the prosecution OF its own mortgage, it
was guaranteed a bid Of S45, 79A ,059 at
the sale which should be ordered by the
court over ana above the amount OF
the first mortgage. This amount in
cIuded the sinking fund and SIS. 500. 600
in addition.
There was no formal agreement. 1t
consisted OF letters between the reOr-
Eanization committee and separate
counsel of the government and At
torney General Harmon. all Of which
were published in senate document 81,
Fiity-foUVth congress, second session.
"The agreement, as have said- goes
no further than 10 provide for the as
sistanCe OF the government in suits
brought for the foreclosure Of the first
mortgage bonds and bringing suit for
foreclosure Of its own.
The sale of the property vas (and
necessarily must he) by the direction
Of the court, as i'll other foreclosure
suits. With the whole world for bid
ders-
THE appearance was made and the
suits instituted as agreed before the
advent of the present administrations
These suits. therefore, 1t had to accept
ana 1t has endeaTored to secure such
decree as it believed the government
under the laws Incorporating the rail-
roads WAS entitled TO.
1t may be disputed as to whether
the agreement to 20 into court should
have been made. 1t is not disputable
as TO what the government, after it
WAS in court. could do. There, Ike any
other sutton, the government Was sub
jeet to the orders Of the court. / mean.
Of course, subject to the orders of the
court as creditor. As sovereign its
powers could not be affected and have
not been by the decree. We think.
therefore, that the action of the gov
eminent ard the situation are very
plain II has not sold its interest. II
has enabled interests 10 be sold at pub
lie auction to the reorganization COM
mittee Or 20 ANY committee or to any
body or association, which OF who may
lid the highest
I'm what I nave said do not mean 10
Imply criticism of the previous admin
istTaiion WHAT st dl3, it no Doubt did
ou mature reelection and ia saneereS4-
judgnent. aud rs acton was recon-
lnended by both receivers WHO had been
appointed upon the application CT uls
United States. and was also ulau1HouS-
~ recommended by tRe FIVE government
directors
"N9w as to the relation of the govern
nefE 10 tEle deerees: Tney, as render
ed. were IN many respects gravity IllZ,
but in other respects were not as the
government stTauu0uSly c0Gltended fo'4.
For instance, the Omaha bridge mort
CAGES. amounting to about 81 200, 600,
were adjudged 10 be superior 10 tAe lien
of the government on that part OF that
road between Omaha aud Council
Bluffs, and in addition the money and
assets I'm the hands Of tlla receivers ac-
cl7uing from the operation OF the roads
were ordered 10 he Sold instead Of being
reserved to meet 4 deficiency judgment
expected 80 be obtained lay Nle govern
ment. Tgl;s amounted to mora than
s.. 000 coo This. Of course. would ba-
come Importance if the price bid al ahe
sale SHOULD n8N equal the government )
lien.
Dissatisfied with the DEGREES, there
fore. the government con- ates-d tila
propriagY Of IN appeal. Ylle TepNga,l-
lied committee, le2uliCg this. came for
ward With an increased hid Of oE-eT
four million. making the total of their
guaranteed bids fifty million instead 81
S45, "a ,O59 an increase of S4.245.94L
This increase relieved The objections
10 the DEGREES SO far as the money con-
vemti0us were concerned. In all else,
tie DEGREES were Just and satisfactory,
Under these circumstances, an appeal
did not seem justified
'RegfS 1sas a. higher bid, the prospect
OF it seems as great now as IS would be
later These considerations determined
she government 1t must he remember
ed mat fhe governments lien is q sec
ond one second 10 a first mortgage OF
So. GOO GOO. The ADVANTAGE il has Sc
cured, therefore. is. To repeat somewhat
that az the sale under the DEGREES Oi
foreclosure there VIII be a hid for 1-hs
reads Of fifty million dollars Of over
and above the first origaSe, ard be
sides, uhe baneftt of absolute freedom
Of comoet5t5Dn at the sale The gov
ernnlant may, therefore, secure tic
whole claim through a higher bid. II il
sura OF sac 00e. 900 and this amount IL
connection With the payments already
made, wa pay the principal OF the deoi