The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1888-01-01

/ PRONUNCIATION and railing al tnem WI
| not make them the vile and corrupt
FEATURES that he pictures. Governor
Pattison seems to have accepted a place
on the Commission under the impress
| sion that war was to be made against
the corporations, and with thai
ldea in his head he conducted
the investigation and has now
presented his report. His recon-
mendation is that government proceed
| at once to take possession of the roads,
and wind up the affairs of the default
| ing corporations.
Messrs. Anderson. and Littler are less
afflicted with bile than their chair
man, and are therefore better able to
give their reasoning faculties chance.
They present fair report of what their
investigations have shoEn; they do not
claim that the roads have always been
managed as thew should have been, nor
that strict honesty and fair-dealing to-
wards the government have at all times
CODtrOuou, put Iuoy uc ShoW euos tAC
companies are weighed down by enor-
nous debts; that it is impossible for the
companies to pay their Indebtedness
and redeem their bonds when they
shall become due; furthermore, it is de-
monstrated that it wo- Id be the rankest
idiocy for the companies, even if
they had the money in hand
to cancel their obligations, to do SO on
the terms set out in any of the acts of
Congress under which they are operst-
ing, for the very best of reasons, that
the subsidized roads can be duplicated
for much less money than they origin
ally cost, and much less than the COM
panies owe. OF one thing We will all be
glad, and that is the position which the
minority has assumed IN regard to the
branch lines. The howl of the ignorant
and the sensational has been that the
subsidized companies were dsfrauding
the government by constructing
branches, as the money which was put
into these lines should be applied to the
liquidation Of the debt to the nation.
The branches are what have maintained
the main lines; without them, the COM
panies would long sipce have CONS
into bankrup cy, anu if the policy
of constructing, feeders cannot
be continued, the stockholders and
bondholders of the Pacific roads proper
might as well at once cast their
stock and bonds into the Ere as SC much
worthless paper. The majority of the
Commission say frankly that without
the branches, the roads would soon be-
come bankrupt. The howl against these
feeders has been so determined and
vicious that the companies have been |
deferred from constructing necessary
branches and are thus in worse con-
dition financially than they otherwise
would have been.
Messrs. Anderson and Littler, clearly |
understanding the situation, and evil
IDENTIFY thinking it improper and un-
desirable for the governm Mt to engage
in the railroad business. recommend
the adoption of plan which will
secure the debt due the nation,
and at the same time avoid
Wrecking the companies which
have done so much for the development
If the west. The plan proposed is to
equire the companies to pay certain
liked sums annually until the debt has
,een cancelled, the obligation to extend
fifty years at 8 per cent. interest. I'm
the corporations would &C
;ept this arrangement, and it is be-
ieved they would further secure gov
rnment by giving q MORTGAGE on sii =,
heir H2ss llInlstsa1 OF the lish on the
short roads that were
subsidized. Ths scheme is a
ensible, reasonable Que, and presents
bout the only plan that can be dsvised
Or an equitable adjustment of the diff.
alty: In NO othsr way can the govern
nent hope to get its money. The plan |
by Governor Pattison is
imply schsme &c 8reo1s the railroads
nd put it beyond the power or posi-
,ility OF the government 10 recover.
1t Is to be hoped thai Congress will |
"a wise and adopt the suggestion of tbs
of the Commission, and having
lone 30, will remove its clutch from the
throat Of the distressed corporations,
leaving the companies free to go ahead,
developing the country, CREATING bust
ness and making money.