New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-02-13
THE SALE TO PROCEED.
y TRIUMPH FOR THE GOVERNMENT IN
THE KANSAS PACIFIC CASE
The REORGANIZATION COMMITTEE OFFERS THE
TIE MOTION FOR POSTPONE
MENT Is ABANDONED.

MENT Is ABANDONED.
ST Louis. Feb l2.-There will be no postpone
meIt Of the sale Of the Kansas Pacific Railroad,
set for February ls :, and Is Ex-Governor George
Hoadly Of New-York special counsel for the Gov
eminent In the Crion Pacific cases. arrived here
Yesterday for the purpose OF asking the United
States District Court to postpone the sale and
allow the Government the privilege OF redeeming
the claims Of the first mortgage bondholders on
the Eastern and Middle divisions. He was also TO
ask for tho appointment Of receiver. by this
means It was expected that the Government would
he able to obtain a better price than the Reorgan-
cation Committee had offered.
Mr. TIoady was met here by attorneys repre-
senting the Reorganization Committee and the
stockholders. and conference vas held. me
representative Of the Reorganization Committee
offered 10 increase the committees oid to an
amount equal TO the principal OF the Indebtedness
to the Government. and the offer was accepted
The counsel appeared before Judse sanborn. in
chambers. to-day. and announced that they hdo
reached an agreement The sale will therefore
go
Washington. Feb. l,-Attorney- General Griggs
received a dispatch from Ex-Governor Hoadly to-
day saying that an arrangement had been erected
by which tho Union Pacific Reorganization Com
mlttee would pay the principal OF the Govern
ments lien on the Kansas Pac!tc IN iuL me
telegram said that the representatives. OF the re
organzation Committee had guaranteed that the
terest in the Kansas Pacific road on February 10
not less than s62@000 the amount Of the principal
Of its claim The Attorney General telegraphea
authority 10 accept the guarantee.
The acceptance Of the proposition docs not now
ever prevent the Government from accepting any
bid in excess Of the amount guaranteed. In the
two transactions by which me Government mas
disposed Of its liens the Union Pacihc ana me
Kansas Pacific roads II receives a total OF vi
75i 222 OF this sum s27 1852 il the principal or
the debt Of the Union Pacific. and s3l,2n'h the
full amount ot the accrued and unpaid interest 10
the date Of sale. From the Kansas Paclhc the
Government realizes s63O3,ool the principal losing
tho balance Of interest. amounting TO %o-iW''
The amount realized from the two sales u about
,9o Cs 600 IN excess OF the amount the Government
offered TO take in the latter part or the cleveland
Administration
As 10 the Kansas Pacific, the officials regard me
outcome as eninently satisfactory. inasmuch as the
s,,rn realized when taken in connection with the
first liens which the Government would have been
COMPELLED to bid in I'm order TO protect its own IN
,erest represents in their Judgment, the fun value
OF the road.
This settlement Of the matter releases ana re-
turns n the Treasury the sSo,c1 deposited win
the Court in order that the Government might pe
qualified as bidder the sale; SIl52'o deposlteu
some days ago for the purchase OF the hrst mort
gage bonds and $4,000, which the Reorganza-
ton Committee has agreed 10 pay The alhonh'
which thus will be added 10 the Treasury 8 avail
able cash Is sl41S,255