The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-02-13
$2O,OOO,OOO MORE FOR TWO ROADS
THAN MIR. CLEVELAND WANTED.
Representative Overstreet and the
Secretaryship of the Republican
Congressional Committee.



governments terms and agreed to- pay the
full face value of the Kansas Pacific sub
sidy bonds, 6,3OSOOO, for the property. I'm
til the secretary of the treasury drew war
rants to take up the first mortgage bonds
the committee would not agree to anything
above 81, 100000, which would have left the
government in the hole about $l1 900 on
it's total Kansas Pacific investments. AS
the case Will now stand the government will
get over $64, $50 600 for the Union Pacific sya-
tenn, whereas President Cleveland agreed to
sell for $40, 600. In accorCalce with the
agreement reached, there will be no post
poaement of the sale of the Kansas Pacific,
which was set for Feb. Is, II and 1S Ex-
Governor George Hoadly, of New York,
special counsel for the government In the
Union Pacific cases went to St. Louis Fri
day for the purpose OF asking the United
States District Court there to postpone the
sale and allow the government the privilege
of redeeming the claims of the first mort
gage bondholders on the eastern and middle
divisions. He was also to ask for the APP
pointment of a receiver. BY this means lt
was expected that the government Woulo
be able to obtain a better price tnan the
reorganization committee had onered. MI.
Hoadlv was met at ST. Louis by an attor-
tee and the stockholders, who Offered to in
crease the committees bid to an amount
equal to the principal of the governments
indebtedness. The offer was accepted Inc
gentlemen appeared before Judge Sanborn
in chambers at St. Louis to-day and an
nounced that they had reached an agree
me1t.
Attorney General Griggs received a dis
match from Judge Hoadly confirming the
above. He said the representatives of the
Union Pacific reorganization committee had
guaranteed that the government should re-
ceive at the sale of it's interest in the Kan
sas Pacific road on Feb. 16 not less than
S. 3O3 COO the amount OF the principal OF
it's claim. Thereupon the attorney general
wired authority to accept the guarantee.
The acceptance of the proposition does not
however, prevent the government from ac-
cepting any bid in excess Of the amount
guaranteed In the two transactions by
which the government has disposed of its
liens upon the Union Pacific and the Kan
sas Pacific roads it receives total Of
So, ,751, ,22S. OF this sum $272S6,512 is the
principal of the debt of the Union Pacific
and S31 211 I'll the full amount of the ac-
crued and unpaid interest to the date of
sale. From the Kansas Pacific the gov
ernment realizes Sc, 100000, the principal,
losing the balance of interest, amounting to
Sc, ,624, ,107. The amount realized from the
two sales is about $40, 900 900 in excess of
the amount the government offered to take
during the last part of the last administra-
tion As to the Kansas Pacific the officials
regarded the outcome as eminently satisfac-
tory, inasmuch as the sum realized when
taken in connection with the first liens,
oh he WOTIld
compelled to bid in order to protect it's
own interest represents, in their judgment
the full value of the road. This settlement
of the matter releases and returns to the
treasury the 100000 deposited with the
court in order that the government might
be qualified as bidder at the SALE $7,515, 255
deposited some days ago for the purpose of
the first meeting bonds, and $6,303000 which
the reorganization committee has agreed to
pay. The entire amount which thus will
be added to the treasurys available cash
is $14, us ,255.
Representative Overstreet is still unde-
cided whether or not to let himself be run
for secretary of the Republican national
congressional committee which will meet
next Monday to complete its organization
There is a general desire among members
of the committee to utilize the Indianapolis
congressman as secretary, but the trouble
is Mr.. Mercer is disposed to hold on and
nobody has the nerve to tell that gentle
man that they prefer another man. Mr..
Mercer is one of the most amiable men in
Congress, and has not an enemy in or out
of that body, but he is not enough of a
human steam engine to suit some of the
committeeman, who feel that the men in
charge of important campaigns must work
twenty hours out Of twenty-four to win.
Chairman Babcock is that kind of hustler
and he found in Representative Overstreet
a running mate to his liking two years
ago. Mr.. Overstreet would not make fight
for secretary of the committee under any
circumstances, but if the situation should
take such phase that he could be elected
without creating enemies he might be in
duced to accept
The manufacturers of armor plate. heavy
guns and projectiles look on the De LONE
incident and consequent commotion in in
ternational politics as providehtial, and they
are in Washington in full force to help
along legislation affecting their interests
The Senate committees increase of $50OOOO0
in the fortifcation and coast defense appro-
priation was in their interest, and they are
massing their influence upon the House.
They feel sure of the Senate, but are not
overconfdent OF their ability to control
the House members of the conference COM
mittee. where the bill win land after the
Senate passes 1t with the $5,eoO,0o0 increase.
The House conferees will be members of
the subcommittee of the appropriations
committee. which framed the House bill
and cut the War Departments estimate
from $13,o00000 to $4,0o0.0Jo Representative
Hemenway. of Indiana, is chairman OF the
House subcommittee, and he will be the
ranking House conferee. Mr.. Hemenway is
not a cheese parer in the matter of appro-
priations for coast defenses or for tho
proper equipment of our military and naval
establishments. but he has had his eye
teeth cut, and can distinguish the difference
between real need for big expenditure
and lobby-created emergency. 1t is not at
all certain that the Senate increase wiz not
prevail, but the House viii have to be con-