| Show GONG GONG GONE I Union Pacific No Longer Under Federal Control SOLD UNDER THE HAMMER BOUGHT BY EASTERN COMMITTEE COMMIT-TEE OF REORGANIZATION Railroad Property Bid I For 83988328187 Bonds 13645 25089 Total 35852853276 Features of Sale Tame History of the Continental Railway Omaha Neb Nov 1The interest of the United States government in the Union Pacific railroad terminated at 1145 oclock this morning when at the foreclosure sale of the mortgase held by the United States the road was purchaspd by the committee of eastern capitalists formed for its organization The full amount accruing to the United States from the sale cannot be given exactly but is estimated to be 5806574840 I was impossible to determine the full amount at the time of sale for the reason that the monthly statement made by the secretary of the treasury to the management of the Union Pacific on the first of every ev-ery month was not available today and i was found necessary to esti mate some items although it is admitted ad-mitted by both sides that the estimates mates are approximately correct The amount due the government is made up as follows Principal of debt 37236512 interest inter-est paid bv the government up to Sept 30 1897 3083088637 interest accrued ac-crued by Sept 30 and still unpaid 28614769 interest accrued in Oct 9538250 total due the government 5844892861 Against this are the following credits Cash and bonds in sinking fund 1818240653 estimated credits for the quarter ending Sept 30 and for the month of October including government earnings and the interest on bonds in the sinking fund amount not yet credited 38418021 Total credit 1856564674 Total debt of the railroad to the government 5844892861 total credit of railroad with government 18565 64674 Balance and amount bid by reorganization committee 39883 28187 The sinking fund bonds sold for 1364525089 Total bids by reorganization re-organization committee 55352853276 The amount earned by the road during dur-ing the quarter ended Sept 30 and during the month of October is estimated est mated but is practically correct and as the government will simply retain the cash crediting the amount on the bids of the committee the amount to be turned over as a consequence of the sales is 5806574840 After the sale was concluded C R Cowin the representative of the government gov-ernment was assured by the committee com-mittee that i the amounts not accurately ac-curately figured should differ from the figures given above whatever may be lacking will be paid by the committee and will in no way be allowed to interfere in-terfere with the confirmation of the sale I There was no opposition to the committee com-mittee and no bids were offered against theirs TAME AND UNINTERESTING The sale of the road was in itself one of the most tame and uninteresting uninterest-ing performances possible to imagine I was advertised to take place in front I of the Union Pacific freight house at the junction of Ninth and Jones streets I at 1 oclock and it was just one minute I after that time when Master in Chancery Chan-cery Cornish who was to act as auctioneer auc-tioneer took his place on the low stone step in front of the Ninth street entrance en-trance For over an hour a crowd had been gathering to witness the sale and it was only with great difficulty that Mr Cornish was able to get sufficient room to enable him to work He finally fin-ally jammed himself back into the corner cor-ner of the doorway with one shoulder against the door and the other against the brick wall and prepared for business busi-ness The crowd which was not over 500 all told was packed so closely around the doorway and up in front of the center of the building that the members of the reorganization committee the men who came out to buy the road were unable to see anything or hear a word of what was going on They were compelled com-pelled to stand back in the hallway from which of the members one occasionally occa-sionally poked out a face just to see that all was well Packed into the hall leaning against the bannisters squatting squat-ting upon the stairs or standing wearily wear-ily in the center of the door were all the members of the committee Receiver Re-ceiver Mink hied him to an upper window win-dow out of which he leaned to watch the proceedings below I THOSE PRESENT Those of the committee and connected with it who were present were Receivers Re-ceivers John W Doane Ellery Anderson Ander-son General Louis Fitzgerald of the reorganization committee and Winslow I Wins-low S Pierce attorney of the reorganization reorgani-zation and the wizard who evolved the srheme of reorganization Alexander Miller of Boston secretary and assistant assist-ant comptroller of the company John Sheridan of Maryland a government director of the road General Solicitor Kelly arid Mr Cowin the government representative Marvin Hughitt of Chicago I Chi-cago T Tefferson Coolidge jr of Boston Bos-ton and Lewrence Greer his assistant Mr Cornish carried under his arm a large portfolio bound with the regulation regula-tion red tape and as soon as the crowd gave him room to extend his arms he untied the strings and drew forth a number of papers Selecting one of these he replaced the others and holding I hold-ing I out said THE AUCTIONEER Gentlemen I am here to sell certain railroad properties in pursuance of a I decree of the United States circuit court I will now read the description of the property to be sold and when I I have finished the reading I will be I prepared to receive bids Here followed the notice of sale which was very long being about four I columns of agate type This notice is so long gentlemen said Mr Cornish that I will not attempt I I at-tempt Co read i so that all of you can I hear it I will endeavor to get through I it ns rapidly as possible He began the redding of the notice I and as he had said did not read it so I that many people could hear it He I grew weaker and finally it became I I nothing but an unintelligible mumble I that was not distinguishable three feet I distant Close to his left hand stood I Lawrence Greer with a copy of the no I tice in his hand and he followed the reading of the master in chancery very closely He was the only member of tJie reorganization committee or those connected with it who saw the proceedings I proceed-ings from first to last From time to time Attorney Pierce who was in the hall just behind that portion of the door in front of which the auctioneer was I standing looked out and receiving a glance from Mr Greer withdrew into the hal once more The reading of the notice took just an even 40 minutes and when it was evident that Mr Cornish Cor-nish was well through the last column of the notice Dr Louis Fitzgerald who was to make the bids pushed through the door and stood close by the side of the reader As he finished his reading read-ing Mr Cornish folded up the paper and placed it deliberately in his portfolio port-folio He then drew forth a small typewritten 1 type-written document and without an nouncing was its nature began to read I A PROTEST from Managing Receiver Frank Trumbull of the Union Pacific Denver Gulf against the sale with the other Union Pacific property of two miles of track on the Cheyenne Northern road the two miles being claimed both by the Union Pacific and the Union Pacific Denver l Gulf Mr Cornish I after reading the protest annaunced I that any prospective purchaser of the I road must be willing to encounter the consequences of the protest and that I no guarantee of their ownership by I the Union Pacific was included in the sale This was agreeable to the reorganization re-organization committee and the sale I prcceeded After reading this notice Mr Cornish Cor-nish placed it in the portfolio and said I am now ready to receive bids for the railroad property of the description I which I have just read I There was a moments silence and I then General Fitzgerald said THE BIDDING I I bid 3988328187 in the name of Louis Fitzgerald and A W Kreich purchasing trustees There was another pause and Mr Cornish said Are there any more bids There were none and the master continued con-tinued I will receive bids for the sale of the bonds a description of which I have read General Fitzgerald replied I bid in behalf of Louis Fitzgerald and A W Kreich purchasing trustees the sum of 1364525089 In both instances General Gen-eral Fitzgerald read his bid from a memorandum which he held in his hand ANY MORE BIDS Mr Cornish opened his mouth to say are there any more bids when a voice from the crowd called loudly I Wait a moment Mr Cornish What are the amounts of those bids J I cannot hear them and General John I C Cowin the government attorney i pushed his way through the crowd with great difficulty He had been standing about ten feet from Mr Cornish and he had been unable to hear the announcement of the bids so low had been the voices of General Gen-eral Fitzgerald as he made them and the voice of Mr Cornish as he repeated I re-peated them The ale stopped for a moment as General Cowin struggled through the Cioud to the side ol Mr Cornish He I I was shown the amount of the bids on I the memorandum held by General Fitzgerald and made a note of them He then turned away and Mr Cornish again opened his mouth to say are there any more bids and this time he succeeded There was not a sound and the master continued PROPERTY KNOCKED DOWN As there are no more bids I de clare the property of which I have just read the description sold to Louis Fitzgerald and Alvin W Keich purchasing trustees they having made the highest bid and the only bid That was all there was to the entire entre sale and the members of the reorganization reorgani-zation committee and their attorneys lost no time in getting back to the 1 offices of the Union Pacific road for the wind blew hard and i was cold out there where the auction had taken place I Under the terms of the sale the purchasers pur-chasers have 90 days in which to pay over the full amount of the purchase I money ar < d that part of the transaction transac-tion will be carried out in New York in I the future The government has now j I i the sinking fund of the road and the I amount of the guarantee check put up I j by the reorganization committee This I j I is just about 10 per cent of the full purchase price of the road The members I 1 mem-bers of the committee had nothing to j say after the sale was over Attorney Winslow said that it was possible that tonight he might have a statement to issue but just now he was not certain whether it would be issued or not FUTURE MANAGEMENT Regarding the future management he had nothing to say but it is practi I cally that it will for the time being be left in the hands of the present receivers re-ceivers who will run it as they have I been running it with the sole difference differ-ence that they will be responsible to the reorganization committee instead of the government When the committee com-mittee has perfected all of its arrangements arrange-ments it will relieve them The future head of the road will be S H Clark the former president if his health will permit him to take the position He had been expected at I the sale today but was confined to I his home in St Louis by illness The sale today was under the mortgage I mort-gage on property held by the United I States government Tomorrow at the same time and at the same place as the sale was held today will be held I another sale for the foreclosure of the trust deeds securing the construction bonds which constitute the first lien on the road None of the reorganization committee commit-tee cared to make statement any regarding re-garding the Kansas Pacific sale which has been postponed until Dec 15 None of them would say a word as to whether the committee intended to bid or not |
