Los Angeles daily herald., 1888-02-09
THE UNION PACIFIC.
Annual Report Of the Gov
ernment Directors.
SOME TIMELY SUGGESTIONS

The Present Administration Of til,
Company Highly Com.
Mended.
fA7soci led Press Dispatches to the HERALD.
WASHINGTON, February 8.-The fol
lowing is a summary of the text of the
annual report Of the Government di
rectors of the Union Pacific just re
ceived by the Secretary Of the In
terror:
"In their annual reports for severa
years past the directors have earnestly
recommended, first-That the Govern
ment'adopt some course to effect def
mite settlement of the subsidy debt O
this company ON the basis OF greater
security to itself. And second-That
when the settlement be made, the
present relations of the Government
to the current management of the
property should cease.
In their last two reports the Govern.
ment directors specifically recommend
ed resembling the debt, and it's exten.
sion for period of sufficient length tc
admit of it's final extiguishment by
the company and the exchange of the
present security, which might easily
prove valueless on effort to enforce
payment, for security covering all the
unencumbered assets and which give
the Government in case of forfeiture
not some helpless pieces OF railroad,
hut completed and profitable sys.
tenn. These general views in very
decisive manner have been adopted,
enlarged and strengthened by the able
and exhaustive report of the Com
mission appointed under the act oI
March Sd, 1887. 1t now seems to the
Government Directors that there can
be no reasonable doubt as to the
interest and duty of the Government
toward the Union Pacific Railroad
We cannot too strongly urge the great
harm delays are doing both to the
Union Pacific and to the security Of
the Government debt.
THE PLAN PRESENTED
By tie report OF the Commission
presents features which strike
the Government directors favorably
The suggestion Of mortgage to
secure bonds to be given by
the Commission is fully endorsed. It
is for various reasons set out in the
Commissioners report that it is de-
sirable to have an acknowledgment in
writing Of the usual form by the Com
pany Of its indebtedness to the Gov
ernment. This would be an advant-
age also, in the feature of the plan
which permits tho debtor Com
pany to redeem Its bonds in whole
or in part 10 long as they remain in
possession and under control of the
the United States. The provision OF
Commissioners plan making it pos
sible at the option OF the Government
to take action. against thoee tamper-
ing with tho property Of the
road and thus diminishing ils
security to tho Government il
proper. The Board
say that the question Of to what ex-
tent any efforts to have justice done
after so long a period may be
e1ectual, is better left to the legal ad-
wise of tbs government. They ap-
proved Of the plan to abolish the
Office of government director, and
place the government and company in
the positions of an ordinary mortgaged
creditor and debtor so long as the
provision Of the act is carried out.
The government directors do not pro-
pose to discuss the plan submitted
BY THB MINORITY REPORT
OF the commissioners, the objective
point of which is not so much the re.
covery Of the money due the govern
ment, as the punishment of those
supposed to be guilty Of unlawfully
diverting the property of the ompany
If, however, they may express an
opinion as to the desirability of the
course recommended by the minority
report, they do not hesitate te
say that they would view its
adoption with deep regret. Indeed
if this were the only alternative
it would be, in our judgment, better
for the government to lose every dol
lar of its debt and grant an executive
release to the company. Whatever
may have been the wrongs done by
individuals in their dealings with the
Union Pacific, they should be atoned
for by those individuals only. The
Directors deem it unnecessary to entel
into detailed account of the opera
tions Of this road during the pas
year, tho reason being that the act O
March 8, 1887, makes 1t the duty O
the committee to examine Thoroughly
and report upon the financial and ex
ecutive administration of the Union
Pacific Co., and this the committee
has done"
The Board then quotes tha
part of the committee repor
in which tho committee say
that tho Union Pacific is to b.
exonerated from the condemnation
passed on the transactions of the othe
roads. The present administration Q
the company. so far from impairing
has conscientiously and with sigma
ability protected and promoted th'
interests of the Government, which
under honest administration, are iden
tical with those of the company, ant
we think it due to this administration
that the United States to-day, in ou
judgment, holds the Union Pacific
as an integral part of the Union. Th
Pacific system, if protected by prope
legislation, would be full security 70
the repayment of the whole debt AM
interest.
Moro Territory Wanted.
KANSAS Cry, February S.-Full.
300 delegates were present to-day a
the opening of a convention called t
1 c1~o cAo,r, - cao,,~o kha Avnptvn h