Republican news item. [volume] (Laport, Pa.) 1896-19??, 1900-06-28

| the property to zoe, 0S,44S,Z23.75, being
| the total amount due the Government
| on account Of the Union Pacific Road.
as stated by the Secretary of the
| Treasury, including the sum Of $4,-
$40, ,36S26 cash in the sinking fund.
| Such an amount was bid by the reor-
| ganization committee on Nov. l, 1897,
and the sale was confirmed by the
court on Nov. 6, 1897. After the con-
| firmation of the sale the whole amount
| was paid into the Treasury of the
| United States in convenient install
ments, thus relieving the Government
from any loss whatever upon its claim
for principal and interest due upon its
subsidy, and bringing to final and
most satisfactory termination one Of
these long-standing and troublesome
questions.
I'm the case Of the Kansas Pacific
Indebtedness, by decree of the court
an upset price on the sale Of the prop
erty was fixed at sum which would
yield to the Government $2,5OOOO
The reorganization committee in con-
ference with the Government declared
it's purpose of making no higher bid
than that fixed by the decree of the
court, so that the Government was
confronted with the danger of receiv-
ing for it's total lien upon this line,
amounting to nearly $13,000,O0O, prin-
cipal and interest, only the sum Of
81. 100000. Believing the interest of
the Government required that an eff
fort should be made to obtain larger
sum, and the Government having the
right to redeem the membranes
upon the property, which were prior
to the lien of the Government subsidy,
by paying the sums lawfully due in re-
spect thereof out of the Treasury of
the United States, the President, on
February s. 1898, authorized the Sec
retary of the Treasury to pay the
amounts lawfully due upon the prior
mortgages upon the eastern and mid.
die divisions of said road.
Then the reorganization committee
of the Kansas Pacific offered to bid
for the road sum which would real
iZe to the Government the whole
amount of the principal of the debt,
SG,303,O00 1t was believed that no
better price than this could be oh-
tained at later date if the sale
should be postponed, and it was
deemed best to permit the sale to pro-
ceed upon the guarantee of mini
mum bid which would realize to tie
Government the whole principal of
it's debt. The sale thereupon took
place, and the property was pur-
chased by the reorganization commit
tee. The sum yielded to the Govern
ment was $6,3O3,000. 1t will thus be
perceived that the Government Sc
cured an advance of $685. 600 on ac-
count of it's lien, over and above the
sum which the court had fixed as the
upset price, and which the reorganiza-
tion 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 Kansas
Pacific line, is that the Government
has received, on account of its sub
sidy claim, the sum of $64, 751 ,223.I5,
which is an increase of $2S, ,997, 1876
over the sum which the reorganiza-
tion committee first agreed to bid for
the joint property, leaving due the
sum of $6,5SS,9 ,900.19 interest on the
Kansas Pacific subsidy. The prose
cution of claim for this amount
against the receivers of the Union Pa
citic Company in 1898 resulted in Sc
curing to the Government the further
amount of $S21, ,S977O.
.'The Indebtedness of the Central
Pacific Railroad Company to the Gov
ernment became due January l, 1898,
when default in payment was made
by the company. The deficiency ap-
preparation act of July 7, 1898, ap-
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 bonas to aid in the construc-
ton Of the Central Pacific and West
ern Pacific roads, subject to the ap-
proval of the President.
AN agreement for the settlement of
this Indebtedness was entered into be-
tween the commissioners and the rail
fOuu cOL1pdulSS Ol pepI uiIy L, 1000.
The amount then due to the United
States for principal and interest upon
it's subsidy liens upon the Central Pa
cific and Western Pacific railroads was
$5S,S12, ,715.4S more than one-half of
which was accrued interest upon the
principal debt. The agreement for
settlement provided for the funding
of this amount into promissory notes
bearing date Of February /, 1899, pay
able respectively on or before the ex-
piration of each successive six months
for ten years, each note being for the
sum of $2,940,G35.7S, or one-twentieth
of the total amount due. The notes
bore interest at the rate of 3 per cent.
per annum, payable semi-annually,
and had a condition attached to the
effect that, if default be made either
in the payment of principal or inter-
est Of either of said notes or in any