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

Totals NEUTRALITY-SUSPICIOUS..
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
lee OF the Kansas Pacific offered to bid
| for the road a sum which would realize
| to the government the whole amount
of the principal Of the debt-s6 1903. 900.
1t was believed that no better price
than this could be obtained at a later
date If the sale should be postponed.
and 1t was deemed best to permit the
sale to proceed upon the guaranty
| of a 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 s6.3o3.000 1t will thus
be perceived that the government Sc
cured an advance OF s3,S03,0O0 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-
| brac,ng the main line and the KAN
sas Pacific line. is that the government
has received on account Of its subsidy
claim the sum OF s64, 75l ,223.75, which
Is IN increase OF $lS,997 1876 over the
sui which the reorganization COM
m ee first agreed TO bid for the joint
property, leaving due the sum of So
SIS, 900.I9 interest on the Kansas Pa
cific subsidy. The prosecution OF a
claim for this amount against the re-
ce!yers 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 1. 1898.
when default in payment was made
by the company. The deficiency ap-
preparation act of July Z. 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 L,
United States for principal and inter
est upon its subsidy liens upon the
| Central Pacific and Western Pacific
railroads was S5S,S12,7l5.iS. more than
one-half of which was accrued interest
upon the principal debt. The agree
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
1 able semi-annually, and had condi-
| ton attached to the effect that, IL 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 ofsAe agreement Of settle
ment
ut 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 refundlng
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 $l00.000,00o in
all, and to be secured by mortgage
upon all railroads. equipments and
terminals owned by the Central Pa
cifc Railroad Company. the mortgage
being first lien upon the property.
In pursuance of another provision
OF the agreement. the four earliest ma
turing notes were purchased by
Speyer & Co.. March 10. 1899. and the
proceeds, amounting to $il,762,543.12.
and accrued interest to the date Of
payment. s35.77l.02. in all $ll.7sS,-
Sl4.14. were received by the Treasury