The San Francisco call., 1898-02-17
SALE OF
 THE KANSAS
 PACIFIC The Road Bid In by the Reorganization Committee. Knocked Down to Agent Alvin w. Krech for
 $6,3O3,OOO. He Encounters No Competition and Makes but a Single
 Offer.
AFTER THE ENTIRE LINE.
Middle Division of the Railway Will Be Disposed of at Auction
 TO-Morrow.
Special Dispatch to The Call.

TOPEKA, Kan, Feb. 16.-The Gov ernment lien on the Union Pacific Rail- road in Kansas was wiped out to-day at the Union Pacific station in this city. The Kansas Pacific road was bought in by Alvin w. Krech, representing the reorganization committee, for S6,303,- 900. There was no competition at the sale. MT. Krech was the only bidder.
 MT. krech waited until Judge w. D.. Cornish finished reading the long drawn out decree of foreclosure and then quietly stepped up to the special master and said:
 "On the part of the reorganization committee, bid $6.303. 900 for the road" :"
 Ten feet away the bid was not heard, but it was one of the final steps in the big railroad deal. Judge Cornish then repeated the amount.
 T am offered $6, 6,3O3,0 900 for this prop erty by MT. Alvin w. Krech, represent ing the reorganization committee,' said he Are there any other bidders?
 There being no other bidders l de- clare this property described in the de- cree sold to MT. Alvin w. Krech, on the part of the reorganization committed.
 The party will leave Topeka after the sale tomorrow and go to Sal1na, where on Friday the third sale will take place. This will be that of the middle division of the road, a stretch of 254 miles, un- der a special mortgage. MT. Krech will buy in the property, paying the upset price of $5, 300,00
 On Saturday the entire line of the Kansas Pacific from Kansas City to Denver will be formally sold at the Union Pacific station in North Topeka. This will be under the consolidation mortgage, and the upset price will be $S,000, 900.
 It was stated by one of the principal attorneys in the case to-day that no one except the United States Government and the reorganization committee was qualified to bid on any of the sales this week. The Government qualified only to force the company to bid, as required by the arrangements made at Washington and St. Louis.
 Among those present at the sale were Winslow s. Pierce, chairman of the re- organization committee; Horace G. Burt, president of the Union Paclnc; General John H. Cowan of Omaha, as- sistant counsel for the Government; J. I. Brinkerhoff, general superintendent, and J. B. Frawley, general passenger agent.
 The history of the Kansas Pacific is a history of the methods by which Jay Gould acquired his fortune. The road was built from Kansas City to Chey- enne, Wyo., in connection with the Union Pacific system under a system of Government subsidies. The original legislation gave the Kansas Pacific Company equal rights for rates of transportation over the Union Pacific road, but the latter so disregarded that law and placed such obstacles in the way of the Kansas Pacific getting it's share of the through business that this was one of the main causes of its bank ruptcy in the fall of 1873. It was in the latter part of 1874 that MT. Gould ob- tained virtual control of the Union Pa cific. Under his management the Kan sas Pacific was still prevented from getting it's just dues and so reorgani- zation was prevented until other finan- cial difficulties intervened. and he was enabled to get control of the Kansas Pacific Company's stock and bonds at a mere trifie. In 1876, few days after the election of President Hayes, a re- ceiver was appointed. This receivership proved Gould's greatest coup. He bought the stock at two or three cents on the dollar, compromised the Denver extension bonds and when the consoli- dation was formed the stock of the two companies was valued alike, share for share. Union Pacific stock was worth about 80 cents and Gould came out of the deal ahead by several millions.
 During the last few years the road has paid fairly well. Last year it's gross earnings were $2,250,000, and the net earnings were S705, ,000.