The Republican journal., 1897-11-04
Our Washington Letter.
Correspondence of The Journal.

The general opinion here among politi-
clans is that the recent charges brought
against the administration and Senator
Hanna, with reference to the sale of the
Union Pacific Railroad, have reacted
against the instigators in a way not bene-
fetal to their interests Statements were
published in the New York World and
other Democratic organs to the effect
that Senator Hanna had made an arrange
ment with the ''money powers of the
East last year for the purchase by them
at an inside figure of the Union Pacific,
for which he had received enormous cam
paign contributions. The falsity of this
statement is apparent upon its face, but a
little investigation into tie matter dis
closes facts which make it still further re-
act upon the authors of the story and up
on the Democratic party. In the first
place, the sale of this road was ordered
last year by the preceding Democratic adj
ministration, and the present administra-
ton is doing nothing but carrying out the
plete by its predecessor; and in the sec
ond place it is idle to talk about inside
figures and favoritism, for the reason that
the road is to be sold to the highest bid
der, whoever he may be. In order to
prevent the property from going under
the hammer for a less amount than
would indemnify the Government, an ar
rangement was made with certain parties
that the sale should be started at GER
tain figure, but of course this does not
prevent others from bidding higher, and
as much higher as the competition for the
ownership of the road demands. A par
ticular point of the so-called "dear' was
made by the Democrats in Ohio, and in
the attempt to prejudice the voters
against Senator Hanna us the prime insti
gator of the scheme copies of Cincinnati
papers containing the article were dis
tributed broadcast over the whole State,
in the hope of catching the eye of people
who would not know whether the report
was false or true.
Senator Hanna himself made prompt
and vigorous denial of the charge in
speech recently delivered at Cleveland, in
which he said: "The facts are that |
never heard of the measure or the 'syndi-
cate or anything about it until early in
July last, one year after this alleged plot
| was laid bare. | do not even know who
are the members of the syndicate; never
had any conversation with any of them in
regard to it nd | never was called upon
by my vote Or influence to say one word in
regard to the sale. 1t was a contract made
on the part of the Government by Grover
| Cleveland's administration, and the only
part of it relating to this administration is
that the contract has been agreed to on the
part of the present administration on the
understanding that the syndicate should
| under the terms made by the Cleveland
administration. That is all l know about
it, the rest is lie." This is vigorous lam
guage but it is fully warranted by the
slanderous and utterly groundless accusa-
lions made against Mr.. Hanna.
'The reorganization committee has in
no way been shown the slightest favor or
given the least advantage, said Attorney
General McKenna. whose word cannot be
, questioned in the matter.
1.-THE road will be sold to the highest re-
10
his personality. If a bid of S51 900, 600 is
made, and the re- organization committee
does not increase its offer to So, 900, 900,
the property will go to the parties making
the new proposal. The guaranteed bid
was obtained to prevent the possibility of
disastrous loss If this guarantee did not
exist, an opportunity would be afforded
for bidders to form IA combination and
offer comparatively low figure for the
road.
1.-The increase in the re- organization
committees bid is easily explained
Subsequent to the filing of the original
guarantee bid of $40, 754, O59 number of
overlooked contentious were discovered.
These included the bridge across the
Missouri River at Omaha and a number of
money considerations. The bridge mort
cages amounted to about 81, 200, 600, the
lien on the Omaha and Council Bluffs
division to more than 81, 900, 600, and
other contentious brought the aggregate
to nearly 81 100000.
SIN view of these contentious the de-
crees of the courts were unsatisfactory
and papers were prepared for an appeal.
At that time the re- organization commit
tee increased its bid by 81, PAS, 941 to cover
these additional sums, thus raising the
total bid to even $4,000, 900. In all other
respects the DEGREES were just and salts
factory
Attorney General McKanna expressly
stipulates that there was no formal agree
ment made between the Government and
the re- organization committee The guar
antee bid was arranged by letters between
former Attorney General Harmon and
special council for the committee. The