, 1888-02-09
WASHINGTON NOTES.
Government Directors OF the
Union Pacific
Make an Interesting and Elab-
crate Report.
r. and Sensible Suggestions
by that Body.
WASHINGTON NOTES.
LIABILITIES or CARRIERS.

LIABILITIES or CARRIEgs
WARRINGTON. Feb. S.--The following Is
lhe text ot the bill passed i'm the house to-
day, making bills Of lading conclusive evil
dence in certain cases That whenever any
common carrier by land or water. or its
agent, Is authorized to execute and deliver
bills Ol lading, signs and delivers any bill ut
iading or instrument in the nature thereof
purporting to be for goods, or merchandise
received by such carrier for transportation
from one state to another within the United
States, or to any foreign country such DiIl
of lading, or instrument IN the nature there
OF, in tile hands of any bona hde holder for
valuable consideration, who aCq ;ired the
same In the usual course OF trade, without
any notice OF any defect therein. shall be
conclusive evidence that the goods de-
srcibed therein were actually received by
such carrier in the manner and Tor the pur-
pose therein stated.
- DIRECTORS EEroBr.
rJ$'rhe following il the text OF the annual
report Of the government director, Ut the
Union Paciiic,iu lust received by the secretary
Of the interiors
Sir: The government director. oi the
Union Pacific Rairund COMPANY. have
recognized ir duties L. 70 twp fuli. nrst
To keep watch overland examine tue cUu'
duct oi the business of the company, lhI.
the interests OF the government might at
all times bc carefully protected. Second
10 make to the secretary OF the interior
strh commune ition as might be within
Uir province Of duties involved upon them.
In their annual reports for several years
past, they have earnestly recommended:
First-Tliat the government shall adopt
some cour (which would effect u definite
settlement of the subsidy debt Of this com
pany ON u basis Of greater security 10 itself
and which should be within the ability of
the company to meet and, secOnd--that
when settlement should be made the pres
ent relations OF the government to the cur
rent management Of the property
reports the government directors have
specifically recommended the refunding
aAthe debt and its extension through u pc
d of years Of sutii ;ient length To admit
fts final extingnishment by the company
~ eS;bansc fos the present security, which
Is izVSyauatc and might easily prove value
less Or All effort to enforce payment for Sc
curity covering all encumb bered assets and
all equities of the company, and which
would give the government, in case OF for.
feiture, not some helpless pieces OF raj lroad
but completed aud profitable system,
% This had come to he the unanimous view
Of everyone connected with the govern.
,nent who had officially considered the
subject, and all had arrived at this same
point by independent inquiry. Similar
recommendations have been made
10y the present commissioner Of
railroads and. by bis predecessor.
Gorsement Of the secretary of the interior
last year. Bills embracing the same plan
have several times been reported favoraby
after the most deliberate consideration by
both houses of congress. Those general
views have now in u very decisive manner
been adopted, enlarged and strengthened
by the able and exhaustive report of the
commission appointed under the act oi
March 3, 1887. IL now seems to the govern
ment III roctors that there can he no longer
any reasonable doubt IN to the interest and
duty of the government toward the Union
Pacific railroad, and they begin tn express
an earnest hope that no further delay will
occur IN passing such settlement through
congress. We cannot to strongly urge the
great harm which delay is doing, both
TO the Union Pacific and t. the
security OF tho government dept. Every
consideration which We can believe Is per
tinent To this subject urges its immediate
settlement. The pian presented ny the re-
port OF the com mission contains some new
features which strike the government d-
rectors iavuraby, and Ia which they will
briefly call attention. Tho suggestion of u
mortgage to secure bonds to be given by the
company. is iully endorsed. Heretofore
the lien of the government has been purely
statutory and its enforcement has been sub
iect to all the Il. iii culties. uncertainties aud
incon venienoes, inseIarable To liens of that
character. 1t Is for various reasons as set
up In the commissioners report, desirable
in writing in the usual tOrm by the COM
pany OF It's Indebtedness - the government,
thus placing the mort gage in the same
position us regurus til. reimbursement oi Its
rish,s in court OF equity us mortgages
generally occupy. There would be an AL
vantage also in that feature of the plan whc!
permits the debtor company to redeem IL
Oohds Ia wnuie or in part so long ~ the,
rema,n in III" pUss.Sscn n and the under con.
troll Of the United States The provision
Of the commissioners plan which make. il
possible nj tie opuuIr ot the government tr
take some actiou against those persons " whC
may have ta,npercd viii the property oi
the road and thus diminish tie security o
the government is eiuluenIly proper. To
what extent any effort 10 have iWstice don,
after ~ ,,us II leriud may ba eieotual, the
board will not attempt to discuss Thi.
question II one vi Importance and should
be lett tor decision 10 the legal adviser Ol
the government, IL the time shall arriv,
when IL may bepaCed before huT, 10 ieav,
the npany Tree to attund to its own busi
hess, and as part of this plan to abolish the
office OF government directo or, and to make
the government in all respects an ordinary
mortgage creditor and the company an or.
dinary debtor. So long ~ the provisions O
the act are carried out itmcets WITH the ap
proval Of she board aud Iva. been prOn,i
nent object in the plans hitherto com,
mended. With security mude pr actfcahls
and gre itly increased with gradual reduc
tion OF debt and with provision Tor tore
ciosure constantly ready to act, the govern
nient can well affrod to let the stockholder
conduct the affairs of the property a5 othe
yailrOsds ara conducted, especially In view
ylhe nstorlous fact TINT IT'S l.resvIt re- u