The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-02-09

province Of duties devolved upon them. In their
annual reports for several years past they have
earnestly recommended. 6rsts that the govern
ment should adopt some course which wonld
effect definite settlement of the subsidy debt
of this company, on basis of greater Sc
curty to itself, and which should be within
the ability Of the company 70 meet; and
made the present relations OF the government
60 the current arrangements OF the properly
should cease. In their last two reports the gov
ernment directors have specifically recommended
the refunding of the debt and its extension
through a period of years OF sufficient length to
admit of its final extinguishmens by the COM
pany. and the exchange OF the present security,
which is inadequate and might easily prove
valueIess effort to enforce payment for
security covering all the unencumbered assets
and all the equities of the company, and which
would give the government, in case of forfeiture,
not some helpless pieces of railroad. but a COM
pleted and profitable system. This had come to
be the unanimous view OF every one
connected with the governments who had official
~ considered tie subject. and all had arrived at
this same point by independent inquiry. Sim
liar recommendation has been made by the
present commissioner of railroads and by his
predecessors. The reports of this board mad the
warm Endorsement Of the Secretary OF the In
terror last year. Bills embracing the same plan
have several times been reported favorably,
after the most deliberate consideration. by both
houses OF Congress. These general views have
now in a very decisive manner, been adopted
enlarged and strengthened by the able and
haustive report of the commission appointed un-
der the act OF Congress-. March 3. 1887. IL now
seems to the government directors that
there can be no longer any reason
able doubt to the interest and duty
of the government toward the Union
Paeihc railroad. and they beg to express the
earnest hope that no further delay will occur in
passing such settlement through Congress.
We cannot too strongly urge the great harm
which delay is doing. both to the Union Pacific
and to the security of the government debt.
Every consideration which believe is
pertinent TO this subject, urges its immediate
settlement.
1.-THE plan presented by the report of the COM
mission contains some new features which strike
the government directors Of the Union Pacific
Railway Company favorably. and to which they
will briefly call attention. The suggestion of
mortgage to secure bonds to be given by the
company is fully Endorsed Heretofore the lien
OF the government has been purely statutory,
and it's enforcement has been subject to all the
difficulties, uncertainties and Inconvenience in
evitsbie to liens of that character.
in the commissioners report desira-
bic that there should be Acknowledgement,
in writing, in the usual form. by the company.
of its indebtedness to the government, thus
placing the mortgage in the position as
regards the enforcement of its rights in court
of equity as mortgages generally occupy.
There would be an advantage, also, in that feat
ure of the plan which permits the debtor COM
psny to redeem it's bonds in whole in part, so
long as they remain in possession and under
control of the United States. The provision of
the commissions plan which makes possible at
the option of the government, some action
against those persons who may have tempered
with the property OF the road. an d thus dimin-
ished the security of the government, is emil
nently proper. ITO what extent any effort to
have justice done after so long period may be
efectual, the board will not attempt to discuss.
This question 10 one of Importance, and should
be left for decision TO the legal ad-
wiser of the government. If the
time shall have arrived when it may be
placed before him. To leave the company free
TO attend to it's own business and as a part of
this plan to abolish the Office of government di-
and aHnf ln sx~ III
epects an ordinary mortgage creditor, and the
company ordinary debtor. so long the pro-
visions OF the act are carried outs meets with
the approval OF the board, and has boon prom
inent object in the plans hitherto recommended.
With the security made practicable and greatly
increased. with the gradual reduction of the
constantly ready to act. the government can
well afford to let the stockholders conduct the
affairs of the property as other railroads
conducted, and especially In view of the notori-
Gus fact that It's present relations hip to the
eminent is nothing short of mischievous and de-
structive.
discuss at any length the plan submitted by the
minority report OF the commission, the objective
point of which 10 not SO much the recovery of
the money due to the government as the punish
rnent of those who are supposed to be guilty OF
having unlawfully diverted the property of the
company. Our business is with the. Union
Pacific railway alone, and as that company
wishes to pay its debt to the government and as
we foresee that the debt can be secured and col
lected, our interest lies with our duty in confin
Ing ourselves to the business considerations
that are involved. If, however. the government
directors are at liberty to express any opinion
to the dssirability of the course recommended
say they would view it's adoption with deep re-
greet Indeed, if this were the only
it would, ia our judgment. be better
for the governments to lose every dollar of its
debt and execute release to the company. 1t
Is respectfully submitted that whatever may
have been the wrongs done by individuals in
t.ms.s oo1fx 81 TTrfxx O.
wrongs should be atoned for by those individu-
ais themselves. and by them only. To punish
and destroy the corporation because, some time
liz the past, IL may have been despoied by those
who wore bound in law and in conscience to
protect IL, does not appear to be logical meth
cd OF enforcing justice. nor such conception of
Justice would increase the respect of the peo-
pie for the law of the land
'The government directors deem it unneces-
sary for them to.enter into detailed account Of
the operations OF this road during the past year,
the reason being that the act of Congress of
March 3, 1887. vests the commission with the
power and makes it it's duty to examine thor
pughy and report upon the financial and execu-
tive adn nistrations of the Onion Pacific Rail-
way Company; and the commission having thor
cughy done this, It's report gives all the infor-
nation necessary. In summing up their opinion
pf the administration of the Union Pacific Rail-
way Company, the commission says:
I'VE refer to the admin stration of the Union Pa
rihc Railway Company since the spring of 1884. In
BUR Judgment it is fully and entirely esonerared from
fhe condemnation to be passed the transactions of
pther roads, and relating to other periods We are
Batisf ed that this administration has devoted itself
honestly and ntelligently TO the hercuean task of
rescuing the Union Pacific railway from insolvency.
which seriously threatened it at the inception of its
work. that has devoted itself by rigid economy by
Intelligent management, and BY application of |
avery dollar of the earning capacity the system to
Its Improvement and betterment to place that
pany sound and enduring financial foundation.
The effort has been continued during tho past year
with Increased intelligence and vgor and think 1t
10 be largely due to this administration that the
Inited States to-day in Judgment holds in the
Union Pacific, and through the value which il derives
rs integral part of the Union Pacific system Gf
protected by egslation,l full security for thu
repayment of its whole debt. and of the interest"
lit gives the government directors pleasure to |
express their appreciation. not only of the abili
Is and wisdom, but of the spirit of justice and |
fairness which pervades tae report OF the |
commission, and of the courage with which it |
renders the justice which is due to the present |
administration OF the Union Pacific Railway |
which, SO far from impairing the inter