Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1888-12-14
THE UNION PACIFIC.
The Government Directors submit Their
RepOrt-They Find the Road in Good
Condition and That 1t has Been
Managed With Ability.
They Think 1t Would be Better TO Give
up the Amount Due the Govern
mont Than TO Take Possession
and Operate the Read.

WAsHIEGEOE, D. c., December A-The
government directors of the Union Pacific
Railroad company In their annual report to
the secretary of the interior, under the date
Of November %, say they have assumed as a
premise now beyond the scope of discus :on
the necessity of an adjustment to the gov
eminent and the railroad company for the
payment Of the funds heretofore advanced
as subsidy for building the road. The
government directors are still of the opin-
ion that it would be better for the United
States to lose every dollar of its debt and
execute a release to the company, than to
undertake the duties of a common carrier Of
goods and passengers, thereby establishing
a precedent which wOuld surely create mis-
chief Tar beyond the benefits to l g reaped
from so Hazardous an experiment.
1t must be clear too, says the report, that
every year that Is allowed 10 pass without
the HQu1C alton and settlement of the debt,
increases to a serious extent the difficulties
OF the situation The questions between 1t
and the government, the report says, are TO
be passed upon and determined by large
cody OF men coming from different parts
the country, actIated it may be in some IN
stances by an honest prejudice founded
upon an Imperfe It knowledge or distorted
representation Of facts; or not unfreQuently
by the conviction that some punItOry meas
ure should be adopted against the corpora
alb lily to respond.
These and other elem ents OF uncertainty
embarrass the movements of the company,
and paralyzs its freedom of action. 1t is
as important to the government as to the
company thai ali necessary liberty should
be given the managers Of the corporation
TO develop the resources upon which the fu
ture solveney of the road must depend. 1t
IS not possible, the report says, that rail
way company, situated as the Union Pa
clhc, shall remain any considerable length
of time in the same condition. 1t must
move in one direction or the other. 1t must
improve or deteriOrate.
The government directors assume that
some settlement should now be made and
recommend the conclusions of the majority
of the commission appointed under the act
of 1887 as sound, judiciOus and practicable.
They earnestly hope that they Will meet
with the approval of congress. By adopt
ing these conclusions they are of the Opin-
ION that the government Will secure its
claim beyond any reasonable risk. Its lien,
they assert vii then be placed in such
shape as to make enforcement possible in
case of a default in the payment of interest;
and every y6ar in the futare Will make ulti-
mate payment Of principal more probable.
In concluding their report the govern
merit directors say that SO far as they have
been able to ascertain, the Union Pacific
has been within the past year managed with
ability and integrity. Everything has been
done that cOuld reasonably be expected to
keep the road in the line of improvement
and to satisfy the just requirements Of the
government.