The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1888-04-20
ANOTHER FOOLISH BILL.

notoriety as one determined to /
erect. A day or two ago the wires il
formed US that Mr.. Anderson, of Kar
sas, but it was undoU btedly the low
man, inasmucn as The latter has befol
figured in this line, had introduced
bill providing for the adjustment of tt
financial difficulty existing between II
government and the subsidized Pacif
railroads. His scheme, briefly, is thi
Government is to purchase tt
first mortgage, foreclose the secon
(government) mortgage, take possessio
of the road, and operate it {
a public highway, giving all Gomez
equal rights over it. Mr.. Arderso
says that in this way government wi
earn interest on its monty, and fnall
recover the principal. The plan wa
evidently devised by one who know
nothing about operating railroads, an
very little about the powers and dutie
of the government. If the United State
were to take possession of the Pacif,
road, one Of two tn ngs would happen
namely: The line would be closed or Il
would run at enormous expense to the
Federal treasury. Instead of getting
interest on the money already invested
the government would lose whatever
other sum the first mortgage cost. and
the additional cash it paid for operat-
ing the road. Keen railroaders,
thoroughly competent in their bust
ness, and capable of turning every
point to their advantage, have to sit up
nights and work Sundays, so to speak,
to keep up the interest OF the debt and
make the line pay. Years have passed
since the road earned dividend on
the capital stock. and tits believed that
on more than one occasion the bond
coupons were redeemed with borrowed
money. If the clever men managing
the great continental line, with all
taeir shreIdness, their familiarity
with the business, and their
economy. find it so difficult
to keep the companies heads above
water, what hope would there
ba for the e vernment to successfully
manage the road? Mr.. Anderson's bill
would imply that the gentleman in,
tended that government would operate
the line as competitor with other
roads; if this be the Iowan's purpose
he emphasizes his ignorance of the
matter on which he would legislate. 1t
would be decidedly novel proceeding
for the government to use the peoples
money with which to bankrupt and
crush individuals engaged in the
legitimate business of raIroading.
That is just what the bill contemplates.
When the government gets ready for
that sort of thing. it wants to do
as Germany and other European coun-
tries have done-take possession of
all the railroads, and force its citizens
into other business and enterprises
We are inclined to believe that Mr.
Anderson does not intend anything
very serious in this matter. He is
skirmishing for little cheap notoriety.
1t has been popular to attack the
Pacifcirailroads, and the Congressman
thinks it is still popular to do so.
The late Congress provided a Com
mission 10 inquire into the affairs of
the subsidized roads and devise
scheme for the settlement of their in
debtedness. That Commission made a
thorough investigation, learned the
true status of affairs, satisfied itself
that the companies could not meet
their obligations when they become
due, and wisely concluding that the
United States government ought not
to go into the business of railroading
and especially on bankrupt roads, rec.
commended feasible plan of adjust
ment. That scheme was to give the
com paniefa fair chance to pay debts
WulCu AdO DCOA 4CCh1CSSly COulIdCI6u,
and to let the public have the benefit of
the development which the operation
of the roads would induce. The scheme
was approved by the President and rec
commended to Congress for adoption; it
was endorsed by everybody familiar
with the facts, and was opposed only by
the cranks and the sensationalists who
like to pose as being devoted to watch
ing the interests of the government. 1t
is believed that the great majority of
Congress is in sympathy with the Com
missions recommendation and will
act upon it, passing a bill which will
protect the government and at the same
time save the roads from the bank
ruptcy which would not only ruin the
men interested in them, but bring sad
upon section of country two
thousand miles in extent.