The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1885-01-10

congratulate itself in view of the com
mercial conditions and complications
/ which the change of administration is
calculated, during its incipiency, al
/ least to develop, If not to magnify. The
rate of decrease of this debt, notwith.
standing. was about $500 900 during
each of the months of October and
l November. Its reduction was
a contamination to which the new
management specially and strenuously
addressed itself. The advances to June
50, 1884, to other roads in process of
completion, and on construction ac-
count, which advances 10 the extent
they were then land some still are) unad-
I ]usied were and are payable in bonds and
81 ,S38, O95. The Union Pacific held a
majority of the stock and bonds of
nearly all its branch lines.
The completion of the Oregon Short
Line is noticed and the belief expressed
! that it will soon be not only self-sus-
tanned, but a source of income to the
Union Pacific. The company res
Epeetfully repeats that the investment
tot much of the sinking fund
for the government Tor credi-
tors) as has been accumulated
IS unjust to it. The funds are not so in
vested as to earn the fun measure of its
ability if properly invested. 1t tends,
therefore, In no practical degree, to
relieve the debt of the staggering pro-
portions it will have assumed when the
time arrives for its payment If the
present policy of percentage on the net
earnings and the Investment of
the same in the sinking fund Is
to be pursued, experience having
dictated that some vital essen
tai is lacking to the successful
working OF the policy, some additional
measures must be adopted. The sue
cessful working of the policy pEe-sup-
poses two things. Government is secur-
ing the full land entire amount of its
proportion OF the net earnings and the
investments OF that amount, so as to
accumulate with reasonable rapidity
put II the government is to be reim-
bursed out of the net earnings. the
government directors venture the sug-
gestiOn that, in fact, no department.
of government will ever know, tor
1T is practically impossible to definitely
arrive at what these earnings really are
or may be, until some competent com
missioner or government director is en-
powered by law to supervise, continu-
ally and constantly, the actual concerns
and operations of the company. The
suggestion that seems, from a careful
and intelligent possible survey of the |
matter, the most feasible plan,
is the one that settles or would |
settle & most speedily and per
manently this whole question. and |
obviate all the difficulties which sur
round it. 1t is, that instead of the pre-
sent requirement of government of a |
certain percentage of the net earnings,
a fixed sum be agreed upon,
which the company would be com
PEELED to pay at stated intervals
toward the interest and principal of
the, debt, Government in fixing
S p6Mer c shatf faes6iVs up6h jast and IN
telligent figure, with or without con-
sultation with the company, keep |
ing in view the financial con- |
dition and abilities of the company
and having due regard to the, interest
of the communities and of commerce |
that will beeffected. Government is now
face to face with the proposition that it
shall deal justly with this corporation, |
asst now finds it, and at the same time
Justly with the public and commercial
interests. 6-airrqraf5,. 4
The directors recommend the estab-
liShment of a national railway commits
sion. In conclusion, the directors Say-l
the very happy fact that the stock of
the company is owned now mainly by
investors instead of spectators, has
had a great weight with the govern
ment directors 1t has conclusively
determined in their minds the-fact that,
perhaps, above all things that are to
be avoided in legislation is the contin
gency of such terms being imposed
upon the company as to render its
stock practically and permanently non
diyidend-paying, thus giving it an I'M
certain and purely speculative value.
The result of this would be to utterly
discourage all bona .fde investors and
holdersto force the entire volume of stock
into Wallstreet and finally into the hands
of the pure speculator, to whom control
is better than ownership, because
cheaper" and affording all necessary
means to wreck and prey upon the re-
sources of the corporation 1t is diff
ficult to conceive to what unfortunate
end the road would come in such an
event. Itwould be ruinouS to the road,
and would be the destruction of the gov
eminent upon it. If the government
would take the securities of the branch
lines or require that they be de-
posted as security. additional to that
it now has, and fix upon
it stated amount to be paid at
stated periods, such as would in time
liquidate the debt, but which would not
compel the company to impose unjust
terms upon its patrons, and would
justify the government in prohibiting it
from doing so. this controversy might
be regarded as virtually settled. af