Idaho news. (Blackfoot, Idaho) 1887-1891, 1888-02-18
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Nv
ment directors Of the Union Pacific rail'
r,al IN their annual report to the see
retary Of the interior, refer 10 the iac'
that for several years PAST they nave
recommended that the government,
should adopt some course which wou'u
affect definite settlement OF the sup
sidy debt on the basis Of greater seenr'
ity 10 itself and within the ahlhty OF lhe
company to meet; and that when the
settlement be made the present relations
of the government 70 the current man
arement Of the property should cease.
In the last two reports the government
directors have specifically recommended
the refunding of the debt and its extern
sion through period Of years OF sum
Gent length 10 admit Of its final ex'
tinguishment by the company and the
exchange Of the present security, which
Il inadeuuate and might easily prove
yalueless on an effort to enforce pay
ment, for a security covering all nnln-
cumbered assets, and all equities OF the
comnany and which would give the gov
eminent, in case OF forfeiture, not some
helnless pieces of railroads, but com.
pleted and profitable system. This had
come TO he the unanimous view OF every
one connected with the government who
had officially considered the subject and
An had arrived at the same point by in.
dependent inquiry. These general
views have now, in decisive manner
been adopted, enlarged and strength
ened by the report Of the faclhc rail-
road commission. II seems TO the gov
eminent directors there can be no longer
any reasonable douht as TO the interest
and duty of the government toward the
Union Pacific, and they hope no further
delay will occur in passing such settle
ment through congress. 81.
The plan presented by the racine
commission contains some new features,
which strike the government directors
fayorably. The suggestion OF = mort
gage to secure the bonds TO be given by
the company is fully endorsed. There
would be an advantage in that feature
Of the plan, which permits the debtor
company to redeem its bonds III whole
or in part so long Us they remain in pos
session and under the control Of the
United States. The provision of the
commissions plans, which makes 1t pos
siblc at the option Of the government,
to take some action against those per-
| sons who may have tempered with the
property Of the road and TINS dimin.
ished the security OF the government, is
entirely proper To what extent any
effort to have Justice done after so long
n period may be effectual, the board will
not attempt to discuss. This question
is one Of importance and should be left
for decision to the legal adviser OF tho
government, when the time shall arrive
when il may be placed before him. TO
leave the company free to attend 10 it's
own business, and rs part OF this plan to
abolish the office Of government direc-
tor, and to make the government in all
respects an ordinary mortgage creditor,
and the COMPANY an ordinary debtor, so
long as the provisions OF the act are car.
ried out, meets with the approval OF the
board and has been q prominent object
Of the plans hitherto recommended.
With the security made practicable and
greatly increased. with the reduction Of
the debt, and with provision for fore
closure constantly ready 10 act. the gov
eminent can well afford TO let the stock
holders conduct the affairs OF the prop
erty 0s other railroads are conducted,
and especially in view OF the notorious
fact that its present relationship 10 tho
government is nothing short Of mis-
chievous and destructive.
The government directors do not pro-
pose 10 discuss, at any length, the plans
submitted by the minority report, bat
do not hesitate 30 say they would view
/ -, A. T.. =
Indeed" they say, il this were the
only alternative IL would, in our ludg.
meut, he better for the government 10
lose every dollar OF its debt and execute
q release 10 the company.
In summing up their opinion OF the
administration Of the Union Pacific
since the spring Of 1884, the directors
say:
We are satisfied this administration
has devoted itself honestly and intClli.
gently to the heFculeau task Of rescnin
the company from the insolvency which
seriously threatened 1t vt the inception
of its work; that ii has devoted itself by
rigid economy, by intelligent manage.
ment, and by tue application OF every
dollar of the earning capacity Of the
system to its improvement and better.
ment, to place that company on q sound
and enduring financial foundation. The
effort has been continued during the
past year with increased intelligence
and vigor, and we think il largely due
to this administration that the United
States to-day, in our Judgment, holds
in the Union Pacific and through the
value which il derives as an integral
part OF the Union Pacific system, If pro.
tected by proper legislation, full seen.
rity for the payment Of its whole debt
and interest.
Referring once more to the report oil
the Pacific commission, the directors
say: g II is fair TO expect that such a
conclusive report, coming after an un.
interrupted series Of similar recon-.
mendations, and reducing the general
proposition to its very best form. will
have enough weight with congress IA
lead to an immediate settlement with
the Union Pacific Of its enormous debt
to the government, at the same time
putting an end to the strained and an.
omalous relations that have heretofore
existed between them TO the detrirneu,
Of both.
/
WOOL STATISTICS.
Boston dispatch: The Boston Com