New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-12-25
SETTLEMENT WITH UNION PACIFC.
REASONS WHY 1T Is observation-disclosures SUGGESTED
AS A BASIS.
PRRss DIsPITCH.l


AS A BASIS.
GENERAL PRRss DIsPATcHl
WASHINGTON, Dec. 24.-The Government Ill
rectors of the Union Pacific Railroad, IN their report
say The frequency with which conflicts relative 10
the construction Of the Pacific Railroad Legislation nave
arisen has brought the Government directors 70 con
slider whether or not adjustment of the ease can
be mutually agreed upon ny the Government and the
compauv which shall put end to all controversy
between them and settle indefinitely the manner ana
time Of the Government reimbursement III cannot DE
doubted that such amicabe adjustment wouIu o'
beneficial to both parties The Interpretation "hich
Congress put upon tho acts Of 1862 and 1854 ouohhs
the question of reimbursement by the GOVERNMENT anu
tbe anendatory legislation which 1t enacted relative u
that question have not sustained by the courts
The Inference to DO drawn from the decision OF the
supreme Court il that material changes In the contract
oxis,pg under the said acts between the Government
and the company can be made effective only by inc
mutual consent Of the parties Interested"
In sny material chan &c both parties must be consulted
II is evident that the present arrangement as inter
nred nv the company and construed by the courts III
so far "a they have passed upon IT, is not satisfactory 10
the government II Is equally clear that 1t ~ not pro
motive OF the interests Of the company 10 De IN con-
ffict with the Government Can an arrangement DC
made which shall be satisfactory 10 bOth, !"
secure the Government against loss ana assure its '
male reimbursement Such result ought to be effected
i,bout nuch difficulty The Government directors do
NOT doubt that this can be done (; negotiations
mucb more difficult are successfully terminated every
day I'm the ordinary business affairs OF the people
They II Is not practicable for the company to pay the
rst mortgage bonds and $64,262, 5l2 which would be
dpe 10 the Government at the end OF the 30 years term
# would therefore TO be wise Tor the GoNerheht
cd tho cmnpany TO agree upon the establishment OF
nkino fund which shall reduce the total Indebtedness
M the company the Government at the end OF the
term TO say $2j0OOO00. This can be done without ue
ranpemept of the eompanys affairs, and leave sufficient
earnings toprovde for reasonable dividends on the ea-
tai stoek II does not wise 10 reject tins element III
the case as property which returns an income on the
op,aI which It represents is always better cared ior
than that which does not.
II Congress should authorize the making OF suc al
arrangement as is here suggested, 1t believed that ue
company will concur, and the result VIII DC hat Tue
crpent will have all its interest refunded during Term
=, 90 or and have the principal Of the debt reduced
40 o2G 20 This would leave on the road at Inc ma
tprttv Of the first and second mortgages about
600 "a the bridge bonds will have been elther Whoy
paid OF such balance OF sad bonus as in ne
si AT the time and sinking fund bonds can pe pI0VluJu
To- nv mortgage on the lands the land grant Dohds
viii have been paid of by the sales OF lands. honda
no rovide for the S52000O0O OF first mortgage Dohus
d INC balance due the Government II is prOIosed naI
new mortgage he authorized by Congress tpat S-1
00O 600 of inc new first mortgage bonds Do pceu WIN
- as collateral security 20 be redeemed as
fart as the company can sell them III tne a -, q" &
less than mar and accrued interest, but not III any ono
-, h iess than ten per cent Of the amount besides
cannon interest az IL natures. There Is no ground
for reasonable doubt i issaa, u w. S 600 900 would
he an abundant ana sate anu poPus,"ttb snhane
When rbc practcabiy ana arament q" every dollar
which ~ has invested In the Union racine az a
considered IN eonnGcon WIN wa nS DSsrtmSnts s flow.
ing from indirect bencits resulting rom iS ~ monev
ron OF the road II Is sld tha no eq o - nTofi
credit by the United states has ever produced .
able