Show foreclosure AT ONCE proceedings against the ap pp pacific railroads PLAN OF ACTION OUTLINED attorney general harmon Con confers ferig with tho the government directors find and the th syndicate and on it Guar guarantano antao that tbt the letter latter will bid an upset pries ot of COO tor for th the union pacific that road will be put up tor for salo sale KS its soon as 03 possible washington jan M 2 1 attorney gen cen erat eral harmon hannon today gave eave out the following statement 0 of an agreement with the hie reorganization committee ot of tho the union diflo railway upon the defeat of 0 the th undine funding bill in the house the president directed the attorney general to commence foreclosure proc proceedings ceilings against the union railway company oral first making the best beat arrangements ob laJ for or tho the protection 0 of the government interests rollow following ilig the lines indicated in hit his last report the actor ney general began negotiations with tho the reorganization committee atee on thursday an agreement was made which will result in III immediate diate steps for or foreclosure the chief subject 0 of tho the negotiations was the protection protect Jon ot of the government against risk 0 of the sacrifice ot of its claim by pale at LL a price which would leave nothing substantial after paying prior alens this llon don la Is now assured by a guarantee that the government shall receive on its lien on the aided portions port ionn 0 of the iho union and kansas pacific lines including the sinking fund not I 19 as than allx 7 he sale al will bo be public so no the government will receive the benefit of 0 any up to tho rho full amount of 0 its ita claim principal and I 1 interest tho sum ot cash d n as ag on oil thursday deposited with tile the united states trust company of oc new toik by gen louis fitzgerald chairman of 0 the committee as security according to the terms 0 of tho the agreement the cont coal cittee agrees to bid par for the sinking inking fund it it la Is desired to sell it at al any an time before the foreclosure sale IMMEDIATE ACTION bills in equity have b been con prepared signed by tho the attorney G general elle ra I 1 and hon george hoadley special counsel and forwarded to st louis where the they will on friday be presented to judge sanborn Ot who hits has jurisdiction in all the districts and whose consent to their filing Is necessary because the receivers in charge charee of 0 the property are made parties panics defendant they tire are original bills and riot not cross bills in tho the pending suits whether they will proceed as independent bills or be ordered to stand os as cross bills in the pending suits III its will bo be determined by tho the judge but in any events event the result wilt mill bo be practically the same alz lz the sale of the property pro propel nerty t y under un d e r tho t h 0 governments U 0 i ei n m e n t g lien as ve well i 1 na as u under n d r t that ha t 0 of f t the h e tl first r s mortgage bills will bo be filed in ill the C districts ot of lown iowa Neb nebraska rasIM wyoming colliado Coloia do and utah separate Sc bills for foreclosure of 0 the lien ort on the kansas kaneas are arc lit in comiso of preparation theme will be mod lit in missouri and kansas the proposed wai as submitted to the government ill dl before it was closed they all its adoption their general opinion was thus expressed tile government cannot prudently longer defer settlement of this matter the union pacific system has already been much curtailed and its fix revenue has been permanently reduced reorganizations 0 of allied and reigh boring properties have each been accomplished complis hed or are in train tor for early consummation and the breaking break lne up alt ot the entire union system has haa acen been and Is steadily progressing it therefore ther eforo seems to us inexpedient it not dangerous to neglect this opportunity ot of the sum offered and thus expose tile tho government to continuous depreciation of its ll 11 security it JS Is believed there will bo be higher bids but lt it note not tho the government will at least realize a sum equivalent to the principal of 0 the subsidy bonds bonda As mleh till interest it it t about 3 13 1 3 per cent from their issue luc to the average date of their ma urley turley or about 3 US 45 per cent from the date of 0 issue to january 1 tho the minimum of 0 guaranteed tho the government Is in in cash so that all relations with the property will ter minato upon tho the confirmation ot of the foreclosure sale pal tho courso course to be pursued led with reference to the central pacific has not yet boon determined kuhn loeb loch co bankers for the th reorganization reorganization cam committee 1 have assured refunds te the committee that 1 the h funds funds required to carry arry its agreement mith w ith tho the government into effect will be available avAl lable the following named gentlemen Fent lemen com prime the georgan CO COMMITTEE I 1 louis fitzgerald chairman juoh jacob it II chauncey af t depew T jeff jefferson coolidge marlin man in hughitt anil and oliver ames amee it Is understood thit the necessary legal proceedings incident to the go ern ments taking part in the tha foreclosure suits now pending at omaha pit on be behalf it half alf of 0 the tha alist lien holders will m bo be begun tit lit once and the case pushed to a speedy conclusion conc luion the outlines of the agreement with the reorganization committee more app approved by the altor noy ney general very soon after the failure of the tha funding bill only the exact amount 0 of tho the guarantee eua rantee remaining in abeyance nor mor was lite point decided until judge Il hannons ilaroons armons melt limit to new kew york early in tho the week tile tho first aret after ot of the was OW even the attorney general however insisted upon an increase of which was finally agreed to a at t the last conference yesterday this million the total amount which the government will receive in fit cash prom from this amount however the government will redeem ot at maturity th ill bonds now outstanding the last of which does not become due until the intel Inte interest est iest ort on these bonds bondi until maturity mill also be paid by the government in official circles the agreement la Is regarded rig aa highly ad to the die government people well informed on the union situation intimate that in order to limit the present issue of oc first niort mort KUKO gage bonds of tid m watch litch it appears Is the intention some soine junior kaus of bonds mill haic hae to receive less than limit it was at first intended to ghe them it Is understood that kansas pa consola arid and the pinking fund fand bonds will mill be modified in as to terms before the plan becomes operative judge sanborn issues im an order st loul jan 2 united states clr circuit judge janbol it 11 has issued an order authorizing a foreclosure suit alt against aal receivers of the union pacific road tile tho attorney for the government govern ment was provided with will a voluminous document which was vi produced and proved to be a hill bill praying LyIng that the elie lien of the united states on oil the utah division IVI lot or of tile the union pacific railroad be e foreclosed it li in th ill practice of the united states in dIngs against proper tle lion in lh the hands ot of receivers not to bull ciulla to bo be filed again ah blevit them without ural first huluc atit 9 been bean I 1 obtained front from the judge it in whose whew circuit ciri t ito property Is a located lo catel accord 1 en co calvin owin linked for an all order ot of court for or leave to ur up tile the receivers lec I 1 ec elvera eivers who were ap appointed at the lite instance or of farist and who are now in pow filon salon of the property the th court granted on in order ellair tho united states to sue uc the rec receivers elvers upon c addition that the government appear in III the iho null mul t brought by and others othern trum trustee tees for first mort morlaas gag i bondholder bond holders ot of the iho FiL pacing cirle railway company tile united states and othen suspicious circumstance union pacific Boc noc elvera eivers contract for short line ties SPECIAL SPECIA 11 omahr jan 21 As a 0 result ot of do de today there la Is a growing belief amcie of the union pacific that the committee which a few cw days dass tire ngo purchased td tho the oregon short line utah northern pl n mill buy in tho the remaining irae frair ments of tile tha myslem when offered by foreclosure pal bauo by tile tho government they aro are particularly anxious it t believe such 1 a I purchase to be most likely as an that would indicate that there would be no change chan in 1 the iho manage mient arid and the roster of 0 would then remain just juat as a it appears today the occurrence that has just wn ron firmed the belief of 0 the it hopeful t that h a t the hamem of 0 the union pa will ill be identical u lilt those who bought rhe the line in I 1 the hosu ance of 0 till nil order by tile iho receivers directing tile union to make contracts coni racia for or ill annual supply of crow bics tics for the oregon snort short line sc utah northern rall railway way the contract for ties that will be needed on the union Pa bacille cille etem system during the year 1837 i was wa awarded about IL age these contracts called for or lie alca lor for use or on tile tho union lac flo ELIO alone tie and it was announced fit at that time that no ties lle would bo be bought for or the chort line as aa that road would stion tie bo operated independently of 0 till all other connections now mow comes the order to buy ties for or tho the shot choit t line to last throughout the year the contracts were awarded yesterday yc arid and call for or ties lies of 0 red or ir they will be cut in ill oregon antl and agod on the short abort line general ing agent griffiths this morning exola explained nod that t tho h e reanon tho the contract has haa been beell given out for or short line ties haq wa that barch might be too lato late to ta secure koed good tied at tea lea portable pric and that the erreca lion of 0 the short line would probably not at come before that time the inel dent Is genci ally considered conald ored to be in di catha of 0 the fact act that the segregation of the short altrie hlll be merely nominal and that it will continue to bo be operated ir in the closest conjunction wit with h the union pacific new railroad combination jan 22 2 tho th nw tonight bay the tha new albany chicago railroad will soon be a thing ot of the past part and when it goes out of 0 ex t otence the bedford bloomington and the orleans west baden french lick licit roads it will go 1 w ith it what was once t 1 4 0 roa ds w will 1 1 1 b be e tile the chicago indio indianapolis n a p 0 lis L louisville ot i 1 sv 1 lle |