The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1888-12-02
NATIONAL AFFAIRS
Government Union Pacific
Directors Report.
NATIONAL DEBT INCREASED.
The Comptroller of the CGrrency
Recommends Destruction of the
Remaining Greenbaeks-

wASafSsToS, Dec. The government
directors OF the Union Pacific railroad. in
their annual report TO the secretary Of the
interior. under date of SoY. -, ISIS saw
shey lave assumed as premise row be-
yozd the scope Of discussion. the neces-
sity Of an adjustment between the govern
ment and the railroad company fer the
payment Of funds heretofore advanced a.
subsidy for buildins the road. These
moneys viii be due, says the report, by the
terms OF the agreement between the par.
ties. In few years II IA raanffesf the
road Is not now. ans viii not then be. n
condition to satisfy its obligation Il Is
equally manifest that should such an ai-
iustnent not be effected the government
VIII be compelled TO take possession OF Il e
road and operate Il. g result 50 full of dan
gers, eEnharrsssments aud difficulties. that
u should not be allowed 10 enter into dis
cussion except IS q last and unavoidable
solution OF a problem not othef wise TO be
solved The government directors are
still OF the opinion that il would he better
for the United states TO lose every dollar
OF its debt and execute 3 release TO the
company. than undertake the duties of a
CON mon carrier of goods and passengers.
Thereby establishing a precedent which
would surely create mischief far beyond
the benefit 20 be reaped from SO hazardous
an experiment
II must be clear. too, says the report.
that every year that l. allowed 20 pass
without liquidation and settlement Of the
debt increases 10 a serious extent the diff
eniiies OF the situation. The debtor com
pany Is necessarily under a Disadvantage
compared with ifs unfeftered rivals 1T
owes large debt to the supreme power of
the land II cannot deal AZ arms length
with its creditor for the ordinary consider
hat
or corporations do not. at least may not,
apply. The means by which settlement
IS nnally TO be made OF the questions be-
tween il and the government. the report
says, are to be passed upon and determined
by large body of the country, actuated.
1t may be. in some instances by honest
pr jndice founded upon imperfect know
ledge or distorted representation OF the
facts. or not unfrequently by the couvic-
ton that some pnnitory measures should
be adopted By the corporation. even at the
risk OF diminishing the ability 20 respond.
That body OF men meets only al intervals,
and its attention IS generally engrossed
with other more important subjects upon
which legislation is urgently demanded.
These and other elements of uncertainty
embarrass the movements OF the company
and paTaiyzc its freedom of action. IL is
AS important 10 the government as 10 the
company saws the report, that all neces-
sary liberty should be given the managers
of the corporation TO develop the resources
upon which the fGsure s0lvency of the
road must depend. II is not possible, il
says. thata railway company such as is the
Union Pacific shall remain for any con
siderable length of time in the same con
dition. Itmnst move in one direction or
the other. lt must improve or deteriorate.
The government directors assume that
some settlement should now be made, aud
commend the conclusions of the majority
report of the commission appointed under
the act of March = lSs7, as sound. judieious
and practical, and they earnestly hope
they win meet with the approval of con
gress. By adopting these conclusions they
are of the opinion that the government
will secure its claim beyond any reason
able risk Its lien, they assert, will he
placed IL such sSgpe as will make enforce
ment possible In case OF default in the
payment of interest, and every year in
future viii make the ultimate payment OF
the principal more probable.
Concluding their report, the govern
ment directors say that so far as they have
been able to ascertain the Union Pacific
has been in the past managed with tdeli-
~ and intelligence and everything that
could reasonably be expected has been
done 10 keep the road in the line of i'm
provemeut and satisfy the just require
ments of the government Tue report is
signed by A. {. Easkill. Mr.. A. Hanna. F.
K. Couderf, Franklin Macyeigh, and +. n.
Savage, government directors.