Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1898-12-08
TIE PAcIFIC RAILWAYS.
Plan Adopted for Making the Gov.
eminent Secure

Plan Adopted for Making the Gov
eminent Secure.
In my last annual message l stated: THE
Union Pacific railway. main line, was sold
under the decree of the United States court
for the district OF Nebraska, the 1st an
End of November of this year. The amount
due the government consisted Of the prin-
cipal of the subsidy bonds, $27,2SG.512, and
the accrued interest thereon, S31, 211, 511.07.
making the total indebtedness SIS, AS, 223. 70.
The bid at the sale covered the first mort
gage lien and the entire mortgage claim of
the government, principal and interest"
This left the Kansas Pacific case uncon-
cluded. 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 100000 upon its lien.
The sale at the instance of the government
was postponed first to December Is 1897,
and later upon the application of the
United States was postponed to February
16, 1898. Having satisfied myself that the
inter -sts of the government required that
an effort should be made to obtain larger
sum 1 directed the secretary of the treas
ury, under the act passed March g, 1887 to
pay out of the treasury to the persons en-
titled 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 other
wise appropriated. WheTeupon the attor-
ney general prepared 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 thereupon
subrogated to all the rights of said PRIOR
lien holders and that a receiver might be
appointed to take possession of the mort
gagged premises and maintain and operate
the same until the court or congress other
wise directed. Thereupon the reorcaniza-
ton committee agreed that If said petition
was withdrawn and the sale allowed to pro-
coed on February Is they would bid a sum
at the sale which would realize TO the gov
eminent the entire principal of its debt So
3O3V0Q. Believing that no better price could
be obtained and appreciating the difficult
ties under WHICH the 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, ! directed that upon
the guaranty of a minimum bid which
should give the government the principal
of its debt. the sale should proceed. BY this
transaction the government secured an ad-
which the court had fixed as the upset
price, and which the reorganization COM
mittee had declared was the maximum
which they would pay for the property.
II IS a gratifying fact that the result OF
these proceedings against the Union Pa
Sllc system and the Kansas Pacific line
- that the government has received on
account Of its subsidy claim the sum OF
S54tol ,zZ515, an increase of si8,997 3.75 over
the sum which the reorgau tZation commit
tee originally agreed TO bid for the joint
properly, the government receiving It's
whole claim, principal and interest. in the
Union Pacific and the principal of It's debt
on the Kansas Pacific railroad. Steps have
been taken to fcrecl0se the governments
lien upon the Central Pacific Railroad COM
panyi Dut before action was commenced
congress passed al act, approved July :.
lsSes creating commission consisting of
TIE secretary q the treasury, the attor-