Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1897-01-30
GOVERNMENT TO FORECLOSE
Agreement Made With Reorganiza-
ton Committee.
Minimum Bid ls Guaranteed-.Gov.
eminent Will Receive Forty.
Five Million for Its
Claim.

New York, Jan. 22.-The government
has arranged its deal for closing cut its
interest in the Union Pacific and Kan
sas Pacific Railway companies, and
foreclosure proceedings will be insti-
tuted within a few days.
Mr.. Winslow S. Pierce, the attorney
for the reorganization committee, has
returned 20 the city from Washing ton,
where he went to submit the offer of the
committee TO the attorney general. That
offer was as follows:
"In the event that the government
shall at once take proceedings in the
pending foreclosure suits, or by indie
pendent bills. for the enforcement of
its liens upon the railroads and property
OF the Union and Kansas Pacific Rail-
ways by sale, and for the sale of th'
sinking fund in the hands of the secrs
tary Of the treasury relating TO the
Union Pacific company. the committee
Is prepared to guarantee a minimum
bid for the Union Pacific and Kansas
Pacific lines of railroad and the prop.
erty embraced within the len of the
government, and for the cash and Sc.
curites in the Union Pacific sinking
fund, taken at par, which shall produce
AiC BONSl iilltlll oNNI dIld aDVNt olS
prior liens and charges upon the sys-
tenn and sinking fund the net sum OF
$45, 600, 000."
This sum is slightly below the upset
price which the government desires to
fix of sc 2-3 per cent of the entire ross
debt of the Union Pacific and Kansas
Pacific, amounting 20 s69, 10000 IN round
figures but it was accepted by the attor-
.A,y 800 A.l 80, N.an an
tered into by which, on the deposit by
the reorganizat ton committee of $4,000
000-10 per cent Of the guaranteed bid
in a New York bank TO be designated by
the secretary OF the treasury, forsclos-
ure proceedings will at once be insti-
tuted by the attorney general.
The papers have been prepared and will
be sent as soon as notification of the de-
post IS had to the various officials OF the
department OF justice in each state in
which proceedings must be entered.
Attorney General Harmon is expected
here tomorrow TO consult with Chairman
Fitzgerald and Mr.. Pierce of the reorgan-
ization committee, and with Ex-Governor
Hoadley, the governments counsel for the
Union Pacific railway company.
The proposal from the reorganization
committee IN In such shape that that body
will be permitted to put In minimum bids
for separate portions of the system as
embraced in the different foreclosure pro-
ceedings, conditioned on these minimum
bids ag%Rregating not less than the 49,
O0, N above named and in case the prop
critics are not sold as a single piece.
The members OF the reorganization COM
mittee of the Union Pacific railroad are:
General Louis Fitzgerald. president OF the
Mercantile Trust company; Marvin II.
Hewitt, president OF the Chicago and
northwestern railroad; Chauncey NJ. De-
pew, Il. Jefferson Coolidge, jr, Oliver
Ames Second and Jacob Schif. Alvin w.
Krech, who is connected with the Mercan-
tile Trust company, is secretary of the
committee, and Kuhn, Loeb 81 Co. are It's
bankers.
The principal Of the bonds issued 10y the
government for the benefit OF the Union
and Kansas Pacific roads both payable by
the Union Pacific. Is So, 5S9,5l. or this
only S13, 0i0,cC0 has matured. The balance
OF principal Is due as follows: January l.
1898, $l9, 342, 512; January !, 1899, S,l5I,OOO.
The interest upon these bonds which has
not been paid. after deductlng the sinking
fund provided by the Thurman bill, is
about $22, 10000.