, 1888-12-06
MUSI. HAVE POWER.
The Union Pacific Would Then
Enjoy Prosperity.
HAMpERED BY THE GOVERNMENT
The Connection Should be Scvered--The
Comptroller's Report.--Prcparing
the Ground for Congress.

ment directors of the Union Pacific rail-
road, in their annual report to the secre-
retary of the interior Of the 10th of No
vember, say that they have assumed. be-
youd the scope of discussion, the neces-
sity Of an adjustment between the gov
ernnent and the railroad company for the
payment OF funds heretofore advanced "a
a subsidy for the building of the road.
Those moneys will be due by the terms OF
the agreement between the parties In a
few years, and it is manifest that the road
is not now, and will not then, be in con-
dition to satisfy its obligation. 1t Is
equally manifest should such adjustment
not be affected, the government Will be
compelled TO take possession of the road
and operate it, q result 30 full OF dangers.
embarrassments and difficulties that 1t
should not be allowed to enter into the
discussion, except as a last unavoidable
solution OF the problem not otherwise to De
solved. The government directors are still
of the opinion il would be better for the
United States to lose every dollar OF its
debt, and to execute release to the COM
pany, than to undertake the duties OF u
common carrier of goods and passengers,
thereby establishing precedent when
would surely create mischief far beyond
Gus an experiment.
TIL DEBT iNCkEAsES.
1t must be clear. too, says the report,
that every year that ia allowed to pass
without liquidation aud settlement of the
debt increases to u serious extent the diff
fculties of the situation. An indebted
company is necessarily under disadvan-
tage pared with its unfettered rivals.
It owes a large debt to the supreme power
of the land. 1t cannot deal AT armslength
with its creditor, for according to consid-
ations that operate az between individuals
or corporations, do not, at least may not,
apply when settlement ia finally to be
made, The questions between 1t and the
government, the report says, are to be
passed upon and determined by large
BODY of men. coming from different parts
of the country, actuated. it may be in
some instances, by honest preju-
dice. founded upon an i'm Perfect knowl-
edge or distorted representation of facts.
That body of men meets only at inter-
walls, and its attention is generally en-
crossed with other and more important
subjects upon which legislation is urgently
demanded. These and other elements of
uncertainty embarrass the movements of u
company and paralyze its freedom of ac-
tion. IL Is rs important to the govern
ment as to the company, says the report,
that all necessary liberty should be given
to the managers of the company to develop
the resources upon which the future
solvency of the road must depend.
A CHANGE MUST COME.
1t is not possible, it says, that rail.
way company, situated as Is the Union
Pacific, shall remain any considerable
length of time In the same condition. 1t
must move in one direction or the other.
It must improve or deteriorate. The gov
ern ment directors assume that some settle
ment should now be made and commend
the conclusions Of the majority report OF
the ommission appointed under the act OF
March 3. 1887, IA sound, judicious and
practical and they earnestly hope they
will meet with the approval of congress.
By adopting those conclusions they are OF
the opinion that the government will
secure its claim beyond any
reasonable risks. Its lien. they
assert, will be placed in such
shape as 20 make enforcement possible In
case of default in the payment of the inter
est, and every year in the future will make
the ultimate payment OF the principal
more probable. Concluding their report,
the government directors say. as far as
they have been able TO ascertain, the Union
Pacific has been. in the past year, man
aged with fidelity and intelligence. Every
thing has been done that could reasonably
be expected to keep the road in the line of
improvement and satisfy the just require
ments of the government. The report IL
signed by A. c. Haskell, NJ. A. Hanna, +.
r. Condert, Franklin McVeaQh and F. W.
Savage, government directors.
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