Shoshone journal. [volume] (Shoshone, Idaho) 1884-1931, 1898-12-09
UNION PACIFIC RAILROAD.
Satisfactory Financial Outcome of the Gov
ernmeDt's Actions In Railroad Matters.

ernmept,s Actions In Railroad Matters.
In my last annual message stated:
1.-THE Union Pacific railroad, main
| line, was gold under the decree of the
! United States for the district of Ne
! braska, the first and second of Noyem-
Der of THIS year"
The amount due the government con-
sisted of the principal of the subsidy
bonds, $27, 1885, 12. and the accrued IN
terest thereon, ss1, Ell, 511.o7, making the
total indebtedness sos, 448, s23.75. The bid
at the sale covered the first mortga ge
lien and the entire mortgage claim of
the government, principal and inter
est.
This left the Kansas Pacific case I'M
concluded. BY decree of the court in
that case an upset price for the
property was fixed at a sum which
would Yield to the government only 3d.
SOC, 900 upon it's lien. The sale at the in
stance of the government was postpon-
ed TO Feb. 16, 1898.
Having satisfied myself that the In
terest of the government required that
an effort should be made to obtain a
larger sum, 1 directed the secretary of
the treasury, under the act passed
March 3, 1897, to pay out of the treas
ury to the persons entitled to receive
the game the am crnts due upon all
prior mort cages Upon the middle and
eastern divisions of said railroad, out
of any money in the treasury not other
wise appropriated.
Whereupon, the attorney general pre-
pared a petition to be presented TO the
court offering to redeem said prier liens
in such manner as the court might d.
rect, and praying that thereupon the
United States mi ght be held to be sub
rogated to all rights of said prior lien
holders. and that receiver might be
appointed TO take possession Of the
n1ortgaged premises and maintain and
operate the same until the court or
Congress otherwise directed. Thereup-
on the reorganization committee agreed
that If said petition was withdrew
and the sale allowed to proceed on Feb.
16. they would bid a sum at the sale
which would realize 20 the government
the entire principal of IT'S debt, s6,-
303 900. Believing that no better price
could be Obtained ana a Approaching "a.
difficulties under which the government
would labor II 1t should become the
purchaser of the read at sale, In the
absence of any authority by Congress
to take charge Of and operate the road
l directed that upon the guaranty of e
minimum bidwhichshould give the gov
erumerst the principal OF Ns debt the
gale should proceed. BY this TRANSACT
tton the government secured an ad-
vance Of So, s03, 600, over and above the !
sum which the court had hxed as the
UPSET price and which the reerganiza-
ton cornrdt tes had declared was the !
usaInrrrn which they would pay for
the property. II rs gratifying TO know |
that the result of these proceedings
a vss.es~t she UivSon Pacific ard the Kan
sa Pacific lines IS that the government |
he's received on aceoaut Of MS subsidy |
csafzs the srna OF sst, Isl .22s. rs, aD m
rresese of SIS. ogf. 1855 over The sum
which the reorsia nissston cornns1ttes
agreed to bid for the Joint
property, the government receiving IT'S |
whole claim nrlnctnzal and interest In