The Globe-republican., 1890-04-23
the UNION PACIFIC.

THE UNION PACIFIC.
Report q the Government Director Of the
Union Pacific Railway-Ho Recommends
That tho Road He Permitted to Manage
Its Own Affairs.
CHICAGO. April 16.-A lengthy report
made to the Secretary Of the Interior
by Hon. Jesse Spalding. Government
director of the Union Pacific railway, is
published. The report is the result of
personal observations made during q
trip over the Union Pacific system. Re-
ferring to the alleged hostile feeling to-
ward the company in Nebraska. Mr..
Spalding says: Il found people in Ne
braska who are possessed with the idea
that the Union Pacific was constructed
and should be operated mainly in refer
ence to the wishes of that section, and
who actually believed that their State
should be consulted by the managers
before any Improvements were made.
innovations prosecuted, or extensions
pushed forward. But those who take
an unreasoning. and, to my mind, a most
unjust view of the conduct of the Union
Pacific are exceptions to the rule"
Speaking of Union Pacific investments
the report says:
In addition 10 the railroads In which the
Union Pacific Company has a proprietary
interest, II has investments in other COM
panies and properties ~h :ch. In one way or
another, form necessary parts or links OF q
system that that has been compelled by
reason of the nrwness OF the country in
which its operations are carried on, or be-
cause OF the uncertainty of obtaining sup
plies or accommodation from the outside, to
blaz. its own way in all directions. The
company has been severely criticised for
going into these "outsde ventures" but the
fact IS that In its own interest It has been
compelled to do this and great many other
things which a railroad company operating
In an Eastern State would not find Il either
necessary or even advisable to do.
In my estimation 1t Is imperativelv de-
manded of the management Of the Union
Pacific that it shall push its Northwestern
extensions until it has afforded the Puget
Sound cities all the facilities which they re-
Quire. Seattle, Tacoma and Port Townsend
will welcome the Union Pacific nd extend
privileges and franchises which are now
valuable. but which few years hence will
be simply priceless. Having made these
connections /. will be the greatest railway
system in the world. and will be able to offer
the Government unQuestionable security for
all 1t may owe now or in the future.
Iplace my opposition to the extreme views
of those who appear to be bent upon en-
barrassing the present management Of the
system upon the broad ground that the good
of the public will not be subserved by the
threats they make or the course they are
pursuing. The inability of the Northern
Pacific to meet its obligations precipitated
the panic of l,7A Let not Congress follow
out line of policy which 1t will make it i'm.
possible for the Union Pacific to remain
solvent and which may shock the financial
world in 1897.
This question ought to be settled by Con-
gress at once and for all time. The compa.
ny should be placed in the position Of a
debtor solely, and be permitted to manage
its cwn affairs without let or hindrance from
the Government National interference in
its manaC ement has resulted only in embar-
RAISING situations heretofore and Is bound
to result so hereafter. The Union Pacific
railway system Is at this time not only
wisely and prudently, but probably man.
aged. The br inches and extensions which
have been constructed and the new i'm
provements made during the last five years
have been of direct and incalculabie benefit
1 o hundreds Of thou sands of people In the
West and Pacific Northwest as we'll rs to the
business of the Nation in general. As q
properly 1t is certainly far more valuable
the $50 OoO, 900 or 20 which 1t owes the Cow
ernment. however, at this time, but is able
to Of r security equal to s24 10000 more
than the Government holds now for its
indebtedness. 1t asks an extension of
time and a lower rate Of interest, both
of which the Government can afford to
grant rather than see the property i'm
periled, Tor to imperil It would threaten
the financial ruin of thousands of people
who have invested their money in the en-.
terprise, and more than that the probable
impoverishment of the hundreds of thou
sands who have settled upon its lines dur
ing recent years. and whose interests are so
closely woven with the property of the road
that they can not te separated
The question resolves itself down to this:
What Is est, not so much for the Union Pa.
cific Railway Company as a corporation, but
for the country at large? 1t SEEMS to me
that there can e but one answer to this
let Congress deal as fairly W tn the Union
Pacific as a business man would with q
creditor who was willing and able to pay his
debts il he were only permitted to attend to
his business without Interference or emoar.
raSSment.