The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-12-06
UNION PACIFIC RAILWAY.

help the country in its emergency.
UNION PACIFIC RAILWAY.
In my last message | stated:
1.-THE Union Pacific Railway, main
line. was sold under the decree of the
United States Court for the district of
Nebraska, on the first and 2nd of NOvem-
her of this year. The amount due the
Government consisted of the principal of
the subsidy bonds. $27. 236.512. and the
accrued interest thereon, S31.211.711.I5,
making the total Indebtedness S5S.44S,-
22375. The bid at the sale covered the
first mortgage lien the entire mortgage
claim of the Government, principal and
interest"
This left the Kansas Pacific case UNI
concluded. BY decree of the court i'll
that case an upset price for the property
was fixed at n sum which would yield
to the Government only $2,500,0O0 upon
its lien. The sale at the instance of
the Government was postponed first to
December 18th, 1897. and later, upon
the application of the United States, was
postponed to the 10th day of February,
1893.
Having satisfied myself that the in
terests of the Government required that
an effort should be made to obtain II
! larger sum, directed the Secretary of
the Treasury. under the act passed
March Bird, 1887, to pay out of the Treas
ury TO the persons entitled to receive the
same the amounts due upon all prior
mortgages upon the eastern and middle
divisions of said railroad out of any
money in the Treasury not otherwise APP
propriated. Whereupon the Attorney
General prepared a petition to be pre-
scented to the court Offering to redeem
said prior liens in such manner as the
court might direct and praying that
thereunon the United States might be
subrogated to all the rights Of said prior
lien holders and that Il receiver might
be appointed to take possession of the
mortgaged premises and maintain and
operate the same until the court of Con
Gress otherwise directed. ThereupOn the
reorganization committee agreed that
| if said petition was withdrawn and the
sale allowed to proceed on the 10th of
February, 1898, they would bid sum at
the sale which would realize to the Gov
eminent the entire principal of its debt,
$6,303,0 900.
Believing that no better price could
be obtained, and approaching the Difficult
iitS WHICH Iuc government would
labor if it should become the purchaser
of the road at the sale, in the absence
of any authority by Congress to take
charge of and operate the road, l di-
rected that upon the guaranty of mini
mum bid which should give the Gov
eminent the principal of its debt the
sale should proceed. BY this transaction
the Government secured an advance of
$3.S03,000 over and above the sum which
the court had fixed as the upset price
and which the reorganization committee
had declared was the maximum which
they would pay for the property.
] 1t is a gratifying fact that the result
of these proceedings against the Union
Pacific system and the Kansas Pacific
line is that the Government has receiv-
ed on account of its subsidy claim the
sum of $64, 751 ,22375, an increase or
s S1S,997, 1876 over the sum which the
reorganization committee originally
agreed to bid for the joint property. the.
Government receiving it's whole claim,
principal and interest on the Union Pa.
/ cific and the principal Of its debt on the
Kansas Railway.
Steps have been taken to forecose the
! Governments lien upon the Central Pa
cihc Railroad Company, but before ac<
ton was commenced Congress passed
act approved July LIST, 1888, CT
a commission of the Secretar' ~
Treasury, the Attorney GEM che
Secretary of the Interior al ar sue
cessors in office with full power to set
tie the indebtness to the Government
growing out of the nssue of bonds in aid
of the construction of the Central Pa
cific and Western Pacific bond-aided
railroads, subject to the approval of the
President.
No report has yet been made to me
by the commission thus created. What
ever action is had looking to a settlement
of the indebtedness in accordance with
the act referred to will be duly submit
ted to the Congress.
NEW LAW BUILDINGS.
| deem it my duty to call to the atten-
ton of Congress the condition of the
present building occupied by the Depart
ment of Justice. The business of that
Department has increased very greatly
since it was established in its present
quarters. The building now occupied by
it is neither large enough nor of suit
able arrangement for the proper accom-
mediation Of the business Of the Depart
ment. The supervising architect has
pronounced it unsafe and unsuited for
the use to which it is put. The Attor-
: npy General in his ranort StataS that tho