The sun., 1897-01-23
TO SELL UNION PACIFIC.
IHE GOvERNMENr WILL JOIN IN
THE FORECLOsURE SUITS.
THIS Course Decided d.. at Cabinet Meet
ing rdsy-Hsorsanizatio. Synai-
cate win Bid Not Loss Than slS, asa. geo,
aud Has Fut Up $4,000. 600 Forfeit.

Tag Yesterdsy-Reorgauiza Synai-
cate win MID Not Loss Than s<S, ,1SA.Oeo,
and Has Fut Up sA,1oo.ooO Forfeit.
WARRINGTON. Jan. 22.--It was decided at the
Cabinet meeting to-day to begin foreclosure
proceedings against the Pacific Railroads at
once. Attorney General Harmon returned
from New York last night fresh from his nego-
tiations with the Reorganization Committee OF
the Union Pacific Railroad Company. Prior TO
the regular Cabinet meeting to-day he planned
to President Cleveland the plan outlined In the
statement given. which received the Presidents
approval. The Cabinet was told at Its session
Of what had been done. and this action by that
body was decided on.
As indicated by the statement. the settlement
agreed upon with the reorganization COMMITTEES
marks the ending Of the relations between the
Federal Government and the Union Pacific
Company. II does not interfere. however. with
the right Of the Government to institute pro-
ccodinEs to protect itself In any phases Of the
litigation that may he discovered later.
The following statement was given to tho
United Associated Presses by Attorney. General
Harmon this evening:
Upon tho defeat OF the Funding bill In the
House. the President directed the Attorney
General to commence foreclosure proceedings
against tho Union Pacific Railway Company,
first making tho best arrangements obtainable
for the protection Of the Governments interests.
Following the lines indicated In his last report,
tho Attorney-Gencrai began negotiations with
tho Reorganization Committee. On Thursday an
agreement was made which will result in i'm
mediate steps to foreclose. The chief subject Of
the negotiations was the protection OF the Gov
ernment against the risk Of sacrifice Of It's claim
by n sale at price which would leave nothing
III a..
protection Is now assured by a guarantee
that tho Government shall receive on
Its lien on the aided portions OF the Union Pa
cinc and Kansas Pacific lines. including the
sinking fund. not less than 45.15+.0o0. The
sale will be public, so that the Government will
receive the benefit OF any higher bids mp to the
full amount Of Its claim, principal and interest
The sum of four and half million dollars cash
WAS on Thursday deposited with tho United
States Trust Company Of Now York by Gon
Louis Fitzgerald. Chairman Of the committee,
as security according to the terms Of the agree
ment The committee agreed TO bid par for the
sinking fund II II is desired to sell II At any
time before the foreclosure sale.
BILLS In equity have been prepared. signed
by the Attorney General and the Hon. George
Hoadly. special counsel, and forwarded to st.
Louis where they will. on Friday, be presented
districts and whose consent to their fling is
necessary because the receivers In charge OF the
property are made parties defendant. They are
original bills and not oross bills In the psnding
suits.
the pending suits will be determined by the
Judge. but In either event the result Will DO
practically the came. viz. ia. sale Of the prop.
uuder that OF the hrst mortgage. The bills will
Be- hied In the districts OF 1ovA Nebraska.
for the foreclosure Of tbs. lien on The Kansas
Psesno are In sourse OF grep.rstion. These
will Ss ss 70 :e@
TO the Government directors before II WAS
closed. They all recommended lie adoption.
Their general opinion was thus expressedi
80 The Government cannot prudsn.ly longer
defer the settlement Of this matter. The Union
and lis fsvsDuss have been psrmspentiy re-.
duced. Reorganizations OF allied and neig hbor-
ing properties have either been accomplished or
are In train for early consuming alton, and the
breaking mp Of the entire Union Pacific system
has been and is steadily progressing. It there
to neglect this opportunity OF realizing the
sum offered and thus expose the Government to
SS.aP sSn .ls 81 Ss higher sd
but II not, an estimate shows that, credit
ing amounts already received from the com.
sum equivalent TO the principal OF the subsidy
bonds, with Interest at about 3's per cent. frou.
,heir Issue TO ne sver.Gs da,s date oi Their mn,ur,
The minimum Of st5.7s4.ooo guaranteed
with the property will terminate upon the con-
nrmation Of the foreclosure sale. The course to
has not yet been determined"
ST. Louis. Jan. 2a.Ihs ar.t decisive ,,itsEp 70
secure forsciosnre Of the lien q the pni,sd ,sd
Railway was taken here this evening.
United state, District Judge ssnborn was
T. 81. By Attorney John c. Cowen Of Omaha.
He asked the Judge TO direct that foreclosure
prsH%eedinss 6e begun ~, at once &c ,, s,s
cussed by the two jurIss, ana finally tho Judge
Issued the order
n train for Omaha, where he will institute fore
closure proceeding, to morr'w.
proceedings on behalf of the Government had
been decided on At tho Cabinet meeting vester-
day Gen. Louis Fitzgerald made tho following
:" Announcement is made by the Union Pacific
ReorRaniza ,rn Committee that IL has come TO
an agreement with tho Government In accord
Ance with which tho latter has begun foreclos-
ure proceedings of Its lien upon the Union
line. The R.orsaninstion COMMITTEES suSran.
tees = minimum bid OF something over
fcrty-nye millions for the Goyernmonts claim
upon the railroad and for the Government
Union Pacific sinking fund. and has deposited
e4,bQ0,O00 as earnest money. Kuhn, Loeb d
70, OAHkeTb tno
have assured to the committee the funds re-
quired TO carry i!s agreement with the Govern
ment into effect"
In regard to the articles In some OF tho morn
ing papers yesterday In which II is said that
there was q meeting OF the Reorganization Com
mittee OF the Union Pacific Railway Company
or Wednesday. and that Mr.. Russell Sage. as
an owner OF Union Pacific securities and OF the
collateral trust notes opposed the reorganiza-
tion plan and n foreclosure under tho Govern
ment lion. Gen. Fitzgerald said: There was
no meeting of the Union Pacific Rsorganiza-
tion Committee Yesterday. The only meeting
held here was OF the Executive Committee OF
tho Mercantile Trust Company. Mr.. Sage at
tended this meeting, but tho subject OF Union
Pnolho was not mentioned. l am at u loss TO
know Just what the articles mean. Tho oollst-
proposed plan Of reorganization, except ihdi-
rectly."
Mem bers OF the Reorganization Committee
were not willing to give details yesterday as to
possible mod hcatiOns OF the plan, but II was
said that 10 order TO limit the issue of hrnt
mortgage bonds to $4,000. 900. which IL ap.
pears Y Ia the Intention TO do, some Junior issue
OF bonds will have to receive less than II was
first intended to give them. II Ia reported that
the Kansas Pacific consols aud tho sinkin Ing fund
bonds will become affected to some extent by
any notifications which may have to be mado
In tho plan before IL becomes operative, Under
tho original plan the Kansas Pacific consols
would receive for each $1,000 $500 In first