River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1897-12-09
THE PACIFIC RAILWAYS.
/ should Government become ~ bidder
/ for the Kansas PRcInCs

The Union Pacific railway, main line,
was sold under the decree OF me Onltea
on the LIST nd % of November Of this year:
The amount due the government CONSISTED
OF the principal of the subsidy bonds, ST.
226 5i2 and the accrued interest thereon,
S3l 21l IN. as making the total Indebtedness
SIS 44S 22375 The bid at the sale covered
tho first mortgage lien and the entire mort.
gage claim OF the government principal
The sale Of the subsidized portion of the
Kansas Pacific line, upon which the gov
eminent holds a second mortgage Len,
has been postponed at the instance of the
government to December IS, 1897. The debt
of this division of the Union Pacific railway
to the government on November !. 1897,
s6.30S.000, and the unpaid and accrued in
terest thereon, S66 go. 80. making total
OF Sl2,S29 69O.sS. The sale Of this road was
originally advertised for November !, but
for the purpose of securing the utmost
public notice the event 1t was postponed
until December Is and a second adver-
decree Of the court the upset price on tn 0
sale of the Kansas Pacific Will yield to
the government the sum OF $2500,000 over
all prior liens, costs ana charges. II no
other or better bid is made this sum IS
all that the government will receive on its
claim OF nearly SiS,0o0 Oo0. The government
has no Information as to whether there
will be other bidders or a better bid than
the minimum amount herein stated The
question presented therefore is whether
tne government shall under the authority
given i by The act Of March 3, 1887, purchase
o. ItuEtAl the IOdu III the event tldt n
bid is not made by private parties covering
the entire government claim.
To qualify the government to bid at the
sales Will require a deposit of s90U, 600, a
follows: In the government cause $500uO
and in each Of the first mortgage causes
S20Q,0po and In the latter the deposit must
be in cash. Payment at the sale is as
follows: Upon the acceptance of the bid,
a sum which with the amount already
deposited shall equal Is per cent. of the
bid; the balance In installments OF % per
cent, 90 20 ana 50 days after the confirna-
ton OF the sale. The lien on the Kansas
pacihc prior 20 thai OF the government
on the S0th of July, 1897 principal and inter-
est amounted to S7,2Sl ,04S.11. The govern
meut. therefore, should Il become the high
est bidder, will have to pay the amount OF
the act of 1887 1t has the authority to do
this, and in absence Of any action By con-
gTess, | shall direct the secretary of the
treasury to make the necessary deposit a.
required by the courts decree to qualify
as a bidder and to bid at the sale a sum
which will at least equal the principal OF
the debt due the government; but suggest,
I'm order to remove all controversy, that an
passed explicitly giving such powers and
appropriating in general terms whatever
sum is sufficient therefor
in so important q matter as the gov
ernment becoming the possible owner OF
railroad property which il perforce must
conduct and operate, 1 feel CONSTRAINED to
lay before congress those facts for Its
considera ton and action before the con-
mind that the government should not per-
NIT the property to beisold [ a price which
will WELD less than one-half of the prin-
cipal Of its debt, and less than one-tifth Of
But whether the government, rather than
accept less than its claim, should become
bid Ter and thereby the owner of the prop
erty. ] submit 10 the congress for action.