St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-12-02
PACIFIC RAILROADS.
The Government Directors Pre-
sent a Dark.Colored Report.

sent a Dark-Colored Report.
WASHINGTON, Dec. 1.-The govern
ment directors of the Union Pacific
Railroad company, in their annual re-
port to the secretary of the interior,
under date of Nov. 10, 1883. say that
they have assumed as a promise now
beyond the scope of discussion the
snecesity of an adjustment between the
government and the railroad company
for the payment Of the funds hereto
fore advanced as subsidy for building
the road. Those moneys will be- due,
says the report, by the terms of the
agreement of the parties in few years,
and it is manifest that the road is not
now, and will not then be, in a condi-
ton to satisfy its obligation. 1t equally
manifest that should such adjustment
not be effected, the government will be
compelled to take possession of the
road and to operate it-a result so full
Of dangers, embarraSSmentS and diff
culties that it should not be allowed to
enter into the discussion except as to a
last solution of a problem not otherwise
to be solved. The government di-
Tectors are still of the opinion that it
would be better for the United States to
lose every dollar Of its debt and to exc
cute release to the company than to
undertake the duties CT common car
rier of goods and passengers, thereby
establishing q precedent which would
surely create mischief far beyond the
benefits 10 be reaped from so hazardous
an experiment. 1t must be clear, too,
says the report, that every year that is
allowed to pass without the settlement
of the debt increases to a serious eX-
tent the difficulties of the snlu-
ton. The debtor company is neceS-
sarily under a disadvantage as COM
pared with its unfetteTed rivals. 1t
owes large debt to the supreme power
of the land. 1t cannot deal at arms
length with its creditor. for the ordin-
airy considerations that operate as
between individual or corporations, Go
not, or at least. may not, apply when
the settlement is finally to be made.
The questions between it and the
government, the report says, are to be
passed upon and determined by large
body of men, coming from different
parts of the country, actuated, it may
De in some instances, by an honest
prejudice founded upon imperfect
knowledge or distorted representation
of facts; or not unfrequently by the con-
Viction that some punitory measure
should be adopted against the corpora
ton. even at the risk of diminishing its
ability to respond. That body of men
meet only at intervals, and its
attention is generally engrossed with
other and more important subjects
upon which legislation is urgent
~ demanded. These and other
elements of uncertainty embarrass the
movements of the company and para
lyze it's freedom of action. 1t is as I'M
portant 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
solvency of the road must depend. 1t
is not possible, it says, that a railway
company situated as is the U Mon
Pacific, shall remain any considerable
length Of time iii the same condition
1t must move in one direction or the
other. 1t must improve or deteriorate.
The government directors assume that
and commend the conclusions Of the
majority report Of the commission
appointed under the act of March 5,
1887, as sound, judicial and practical,
and they earnestly hope that they will
meet with the approval Of congress.
BY adopting those conclusions. they are
Of opinion that the government will
secure It's claim beyond any reasonable
risk Its lien, they assert will be
placed in such shape as to make en-
forcement possible in case of de-
fault in the payment of interest, and
every year in the future will make ulti-
mate payment of the principle more
probable. In concluding their report,
the government directors say that SO
far as they have been able to ascertain,
the Union Pacific company has been in
the past year managed with fidelity and
intelligence. Everything has been
done that could reasonably be expected
to keep the road in the line of improve
ment, and to satisfy the just require
ments of the government. The report
is signed by A. c. Haskell. NJ. A.
Hanna, F. r. Coudert, Franklin Mac
Veagh and +. w. Savage. government
directors.