d portion of the Kansas Pacific Line, upon
which the Government holds a second mortgage lien, has been postponed at
the instance of the Government to December 16, 1897. The debt of this
division of the Union Pacific Railway to the Government on November 1,
1897, was the principal of the subsidy bonds, $6,303,000, and the unpaid
and accrued interest thereon, $6,626,690.33, making a total of
$12,929,690.33.

The sale of this road was originally advertised for November 4, but for
the purpose of securing the utmost public notice of the event it was
postponed until December 16, and a second advertisement of the sale was
made. By the decree of the Court, the upset price on the sale of the
Kansas Pacific will yield to the Government the sum of $2,500,000 over
all prior liens, costs, and charges. If no other or better bid is made,
this sum is all that the Government will receive on its claim of nearly
$13,000,000. The Government has no information as to whether there will
be other bidders or a better bid than the minimum amount herein stated.
The question presented therefore is: Whether the Government shall, under
the authority given it by the act of March 3, 1887, purchase or redeem
the road in the event that a bid is not made by private parties covering
the entire Government claim. To qualify the Government to bid at the
sales will require a deposit of $900,000, as follows: In the Government
cause $500,000 and in each of the first mortgage causes $200,000, and
in the latter the deposit must be in cash. Payments at the sale are as
follows: Upon the acceptance of the bid a sum which with the amount
already deposited shall equal fifteen per cent of the bid; the balance
in installments of twenty-five per cent thirty, forty, and fifty days
after the confirmation of the sale. The lien on the Kansas Pacific
prior to that of the Government on the 30th July, 1897, principal and
interest, amounted to $7,281,048.11. The Government, therefore, should
it become the highest bidder, will have to pay the amount of the first
mortgage lien.

I believe that under the act of 1887 it has the authority to do this and
in absence of any action by Congress I shall direct the Secretary of the
Treasury to make the necessary deposit as required by the Court's decree
to qualify as a bidder and to bid at the sale a sum which will at least
equal the principal of the debt due to the Government; but suggest in
order to remove all controversy that an amendme