St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-12-01

with the same freedom enjoyed by his rivals
At present the debtor is ham perei both by
the partnership and by the cloud upon its
credit caused by the attitude OF the govern.
ment. Surely it is to the great advantage OF
10th parties that this state OF AFFAIRS should
cease; that a permanent adjustment should
be made which will give the government
ample security for its debts and pay the in
crest in full and a part OF the principal each
ear, and give to the company freedom of
action in the management Ell It's business and
a good credit in financial centers.
In the discussion of this matter
in congress and in the public press there has
been but one serious question raised as to the
proposed settlement; that is. whether or not
the additional security offered by the CON-
pany is sufficient. As the company w1thhOlds
nothing, but offers all that 1t has,and 1t shows
the financial ability to pay the entire interest
and portion of the principal every six
months, il would seem that the position of
the government is bettered eve nat the first to
the utmost ability OF its debtor to better it, and
that it will
GROW STRONGER
from year to year. But apart from this con-
sideration the board of government directors
elieve that the additional security which the
G, mpany offers will place the government be-
yond the peradyepture of loss This add-
tonal security does not comprise simply the
stocks and bonds of its branch lines. many Of
which may possess but little value, but it is
the absolute lien upon the entire system OF
main line and feeders. 1t is the value of this
system as a whole that is to be consider ed
and not that of fragmentary or dismembered
parts. 1t is transportation machine with
lai ge and growing market for its products.
Should the company default upon a single
payment the government could fOreclOse and
take possession of this entire property, sub
ject only to liens outstanding in the hands OF
the public. Since the date OF our last report,
Jan. 80, 1885, the condition of the road has
changed for the better. The property as a
whole is OF great and increasing value. 1t
should also he borne in mind that in few
years the falling due of 6, and per cent.
bonds in very large amounts will afford OPP
portunities to effect very important
SAVINGS OF INTEREST
by the issue of new bonds at much lower
rates. Should the government in any event
have to assume ownership of the system 1t
could easily take up all outstanding bonds
with a per cent. government bond which
would reduce the fixed charges more than
one-half. 1t seems, therefore, beyond all
reasonable question that the security whlcn
the government will have for its debt, is
abundanrly sufficient TIE government d.
rectors therefore confidently and earnestly
recommend the early passage OF the bill now
Def ore cong eSs unanimously reported by the
house committee on Pacific railroads, which
provides for the final adjustment OF the debt
of the Union Pacific Railway company. The
government directors express confidence
n the present managers OF the ro%i.
IN conclusion, the report says: The
interests of the road and of the government
respecting the future policy are identical.
In other words. what is good for one is good
for the other, and what is bad for one is bad
for the other. The property cannot stand
still and hold its value. If it declines, the
va ue of the investment of the government
will decline. But it cannot progress as II
should until the rel atoms with the govern
ment are put upon wise fixed basis. We
are hopeful that all the indications point to
the abandonment OF the old attitude Oh
mutual antagolism and general belief thai
interests whicn have so long appeared con
tlicting are in reality inharmonious
The report is signed by E. Z. Alexander,
F. j. Gender. NJ. A. Hanna. Franklin Mac
| Veagh and j. w. Savage.