Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1900-06-07

lotaiS ...,..........''.. ..''.'''.
States, the President, on February s..
1898, authorized the secretary OF the
treasury to pay the amounts lawfully
due upon the prior mortgages upon
the eastern and middle divisions OF
said road.
Then the reorganization commit
tee of the Kansas Pacific offered to bid
for the road sum which would realize
to the government the whole amount
of the principal of the debt-$6, 100000
1t was believed that no better price
than this could be obtained at later
date If the sale should be postponed,
and it was deemed best to permit the
sale to proceed upon the guaranty
of minimum bid which would real
ize to the government the whole prin-
cipal of its debt. The sale thereupon
took place, and the property was pur-
chased by the reorganization COM
mittee. The sum yielded to the gov
eminent was $6,303, 600. II will thus
be perceived that the government Sc
cured an advance of S3,S03000 on ac-
count of its lien, over and above the
sum which the court had fixed as the
upset price, and which the reorganiza-
ton committee had declared was the
maximum which they were willing to
pay for the property.
THE result of these proceedings
against the Union Pacific System, en-
bracing the main line and the Kan
sas Pacific line, is that the government
has received on account OF its subsidy
claim the sum Of $Gi751 ,223.75, which
&c an increase of S1S,997, 1876 over the
sum which the reorganization com
nittee first agreed to bid for the joint
nroperty. leaving due the sum OF &c.
| 1888, 500 10 interest on the Kansas Pa
cifc subsidy. The prosecution of a
| claim for this amount against the re-
ceiyers Of the Union Pacific Company
in 1898 resulted in securing to the
government the further amount Of
| 1921 1910.
The Indebtedness of the Central
Pacific Railroad Company to the gov
eminent became due January |, 1893,
when default in payment was made
by the company. The deficiency APP
preparation act of July 7. 1898. APP
| pointed the secretary Of the treasury.
the secretary of the interior and the
attorney general commission with
| full power to settle the Indebtedness
| to the government growing out OF the
issue OF bonds to aid In the construc-
ton of the Central Pacific and West
ern Pacific roads, subject to, the APP
| prevail of the President.
An agreement for the settlement of
| this Indebtedness was entered into be-
| tween the commissioners and the
| railroad companies on February J.,
| 1899 The amount then due to the
United States for principal and inter-
est upon its subsidy liens upon the
Central Pacific and Western Pacific
railroads was $5S,S12,715.4S. more than
one-half Of which was accrued interest
upon the principal debt. The agree
ment for settlement provided for the
| funding of this amount Into promis-
| sorry notes bearing date of February
| /, 1899, payable respectively on or
| before the expiration OF each success
| sive six months for ten years. each
| note being for the sum of $780,
| 635.7S, or one-twentieth OF the total
| amount due. The notes bore interest
! at the rate of per cent annum, pay
| able semi-annually. and had a condi-
| ton attached to the effect that, II de-
fault be made either of the payment
| of principal or interest of either said
| notes or in any part thereof, then all
| of the notes outstanding, principal and
interest, Immediately became due and
| payable, Notwithstanding any other
stipulation of the agreement OF settle
ment.
1T was further agreed that the pay
ment of principal and interest of the
notes should be secured by the depos-
it with the United States treasury of
$57 $50 900 face value OF first refunding
mortgage per cent gold bonds, to be
thereafter issued by the Central Pa
cific or its successor having charge of
the railroads then owned by the COM
pany, such bonds to be part of the
issue of not exceeding s100,000,000 in
all, and to be secured by mortgage
upon all railroads, equipments and
terminals owned by the Central Pa
ciflc Railroad Company. the mortgage
being a first lien upon the property.
"ln pursuance of another provision
of the agreement. the four earliest ma
turing notes were purchased by
Speyer G. Co., March 10. 1899, and the
proceeds. amounting to sl1.762 .543l2,
and accrued interest to the date OF
payment. $35.771.O2. in all $11,79S.-
314.14, were received by the Treasury