The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-02-13

According to the dispatches received
yesterday it would seem that the Union
Pacific will absorb the Kansas Pacific
and thas 1t will have two lines from
Denver to the river 1t seems to be a
settled fact that the reorganization
committee Will take in the line and will
operate the same. There was a time in
the history OF the present proceedings
when it was asserted by the Chicago
papers that the Chicago & Alton and
the Denver & Rio Grande would pur-
chase the road. but it appears this &C
ton will not be taken.
The dispatches tell the following
story:
St Louis, Feb. 12.-There will be no
postponement of the sale of the Kan
sas Pacific, set for Feb. 16, II and Is
Ext Governor George Hoadley, of New
York, special counsel for the govern
ment in the Union Pacific case, ar
rived in st. Louis Friday for the PSF
pose of asking the United States dis
trict court to postpone the sale and al
low the government the privilege of re-
deeming The claims of the first mort
gage bondholders on the eastern and
middle divisions. He was also to ask
for the appointment of a receiver. BY
this means 1t was expected that the
government would be able to obtain a
better price than the reorganization
committee had offered.
Mr.. Hoadley was met here by attOr-
neys representing the reorganization
committee and the stockholders. They
held a conference. The representatives
of tho reorganization committee offer
ed to increase the committees bid
equal to the amount of the principal of
the government indebtedness. The offer
was accepted.
The gentlemen appeared before Judge
Sanborn in chambers today and an
nounced that they had reached an
on.
The telegram from Ex-Governor
" received ut WASHINGTON. said
the representatives of the Union Pa
cific reorganization committee had
guaranteed that the government should
receive at the sale its interest in the
sale of the Kansas Pacific on Feb. Is,
not less than SO. 303, 900, the amount of
the principal. Thereupon the attorney
general wired authority to accept the
guarantee. The acceptance of the pro-
position does not, however, prevent
the government from accepting any bid
in excess of the amount guaranteed In
the two transactions by which the gov
eminent has disposed of it's liens upon
the Union Pacific and the Kansas Pa
cifie roads. it receives total of S64. ISL
223. OF this sum $27 ,236 512 is the prin-
cipal of the debt of the Union Pacific
and s31 .211,711 the full amount of the
accrued and unpaid interest to the
date of the sale. From the Kansas Pa
cific the government realizes $6.S03, 900.
the principal. losing the balance of in
terest, amounting to s6,624,107.
AS to the Kansas Pacific, the officials
regard the outcome as eminently salts
factory, inasmuch as the sum realized,
when taken in connection with the
first liens which the government would
have been compelled to bid in in order
TO protect its own interest, represents,
in this judgment. the full value of the
road. This sale releases and returns TO
the treasury the 100000 deposited with
the court in order that the government
might be qualified as a bidder at the
sale; SITE, 255 deposited some days ago
for the purchase of the first mortgage
bonds and s6.30S. coo, which the reor-
ganiza ton committee has agreed to
pay. The entire amount which thus viii
be added TO the treasury's available
cash is S14. 1925.