, 1888-12-02
Report of the Government
Directors
To the Secretary Of the In
terror.
Recommendations Very Favor
able to the Company.
The Present Management is
Highly Commended.

WASHINGTON, Dec. 1.-The govern
ment directors of the Union Pacific rail-
road in their annual report to the secre-
tary of the interior, says they have as
sumed as a premise now beyond the scope
of discussion the necessity of adjustment
between the government and the railroad
company for the payment of bonds here
tofore advanced as a subsidy for building
the road. These moneys will be due, says
the report, by the terms of the agreement
between the parties in a few years and it
is manifest that the road is not now and
will not then be in a condition to satisfy
its obligation. 1t is equally manifest that
should such adjustment not be effected
the government will be compelled to take
possession of the road and operate it, and
the result is so full of
DANGEROUS EMBARAssMENTs
and difficulties that it should not be al
lowed to enter into the discussion except
as the last and unavoidable solution of a
problem not otherwise to be solved.
The government directors are still of
the opinion that it will 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 aud passengers, thereby
establishing a precedent which would sure
ly create mischief far beyond the benefits
to be reaped from so hazardous an expert
ment.
1t must be clear, says the report, that
every year that is allowed to pass without
liquidation and settlement Of the debt
increases to a serious extent the difficult
ties of the situation. The debtor com
pany is necessarily
UNDER A DISADVANTAGE
compared with its unfettered rivals. 1t
owes a large debt to the supreme power
OF the land. 1t cannot deal at arms
length with its creditors, for the ordinary
considerations that operate as between In
diyiduals and corporations do not, at least
may not, apply when a settlement is final
ly to be made. The questions between it
and the government, the report says, are
to be passed upon and determined by a
large body of men coming from different
pdiio VI lIe COUNTRY, anu acIuaIeQ, IL may
be, in some instances by honest prejudices
FOUNDED UPON IMPERFECT KNOWLEDGE.
or perverted representations of facts, or
not infrequently by the conviction that
some priority measure should be adopted
against corporations even at the risk of
diminishing the ability to respond. That
body of men meets only at intervals. and
its attention is generally engrossed with
lfhnr n~l ,,Nra 10, nnrHarN .,ktan0, --r,.
which legislation is urgently demanded.
These and other elements OF uncertainty
enbarass the movements of the company
and
PARALIZE ITS FREEDOM OF ACTION.
1t is as important to the government
as to the company, says the report. that
all necessary liberty should be given the
managers of the corporation to develop
the resources upon which the future SOL
vency Of the road must depend.
SHOULD o BE HAMPERED.
1t is not possible. the report says, that
a railway company situated as Is the Union
Pacific, shall remain any considerable
length of time in the same condition. Ii
must move in one direction or the other.
Ii must improve OF deteriorate. The
government directors assume that some
settlement snOulu now De MADE ana COM
mend the conclusions of the majority re
port of the commission appointed under
the act OF March 3, 1887, as sound, Judi
cious and practical, and they earnestly
hope they will meet the approval of con-
gress.
By adopting those conclusions they are
of the opinion that the government
WILL sECUR IT'S LAIN
beyond any reasonable risks. Its lien,
they assert, will be placed in such a shape
as to make its enforcement possible in
case of default of payment of interest, and
every year in the future will make the
ultimate payment of the principle more
probable.
THE PRESENT MANAGEMENT sATIsFAc-
TORY.
10 concluding their report the govern
ment directors say that so far as they
have been able to ascertain the Union
Pacific has been in the past year managed
with fidelity and intelligence. Everything
has been been done that could reasonably
be expected to keep the road in the line
of improvement and satisfy the Just re-
q%uirements OF the government.
The report is signed by A. @. Haskell.
NJ. A. Hanna, +. r. Coudert, Franklin
MacVeagh and F W. Savage, govern
ment directors.
Trouble IN Georgia.
Att, ANITA. Dec. I-The neprres nf