The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1891-01-17

Gently took place, necessarily brings the
affairs of that company in its financial re-
lation to the government, to the front, and
this week House committee has been
wrestling with the vexed problem. At the
same time the sixty days Senator from
Idaho, Mr.. MCCONNELL, has rushed to the
fore with bill which he has drafted for
the purpose of adjusting the difficulty. His
plan is hardly worth discussing. 1t means
nothing; or, rather, it means so little
that the law is not necessary to apply it.
His bill provides that the government shall
foreclose its mortgages on the roads and
having done this shall lease the lines for
ninety nine years, the annual rental to be
not less than s5,0O0,0O0 When the mort
want to foreclose it will not require a
special act to give it the authority, and
having taken the property it can do as it
wills with it. MCCONNELL, therefore, has
introduced his bill merely to get little
cheap notoriety as the opponent of the great
railway corporations.
Representatives of both the subsidized
roads were before the committee this week
in opposition to the scheme which was
1t will be remembered that the Union Pa
| cific people, with ADAMS at their head,
thoughtif the government would extend
the loan fifty years and reduce the interest
to per cent, the company would
be able to pull through" and it
was thought that settlement
would be effected on those terms.
The Central Pacific wanted one hundred
years in which to pay its debt, the annual
interest to be 2 per cent. The new man
agement of the Union Pacific finds that it
will be impossible to comply with the
terms proposed by the old managers, and
now offer 2ll per cent, interest, the princi-
pal to run one hundred years. The Cen
trail Pacific also wants new arrangement
with correspondingly favorable terms.
| 1t is impossible to foretell what Congress
will do in the premises, there being so lit
tie Of craftsmanship and so much demagogy
in the national legislature. But we Of the
west know what should be done. We know
that government should at once adjust this
Indebtedness and in such a manner that
the companies can go ahead with improve
ments, can earn money and can pay what
they owe. Hounding the roads has cost
the latter millions Of dollars and has moi
helped the government in the least
The companies have been afraid to 81
ahead; afraid to branch out and create and
gather business, lest government should
pounce down upon them and gobble more
than belonged to it.
There has never been time since the
last spike was driven on Promontory il
1869, when any intelligent person believed
for moment that the Pacific railway com
panies would ever be able to pay their in
debtedness to the government according Il
the terms of Nhe bond. 1t WIS improbable
if not impossible that this would be done
AS the years went by it was ridiculous
to ask payment in full, for the reason tina
the roads scould be paralleled for mucl
less money than the companies owed. Tn
owners could better afford TO surrendel
what they held than pay the debt. AM
that is exactly the position to-day. Al
the property upon which the government
, holds q lien will not fetch enough to pa
I half the debt. Certain Congress
men do not understand this
, or, if they understand it, the.
prefer not to act upon their knowledge, bu
seek to make political capital by STANDING
before the people as valiant warrior
against railroad thieves" "subsidize
corporations and so on.
, Nor does THE HERALD think the none
should DE demanded, or paid. In sayinl
, this much we do not justify the swindling
the croguery, the extravaganza and tn
downright thieving which character
, lied the construction of the hus
The scoundrels should have been punished
but, the government never spent million
n more wisely or in way to yied better rt
turns for the investment, than the cas-
q which went into the Pacific roads. Th
nation has been repaid ten times over fo
}, every dollar which the first trans cont
V mental lineJ cost. We speak for the yves
Y when we say the government should b
e lenient with the companies, should TAX
II its clutch from these Dads and permit th
{ latter to earn money by creating and d.
!. veloping traffic by opening the tributar
. territory. Congress acts as handicap.
! stands as a perpetual menace to progres
It and development. 1t forces the companie
d to fight for their own preservation.
1t makes the government stand in the attituC
IS of an enemy to its own best interest.
:, will be better for the government and EN-
:. nently better for the great westif Congre
, will extend the debt fifty or hundre
d years or longer, and reduce the interest
If a rate which can be paid. The compani,
can then work with some heart, and fe
g that they are out Of the reach of ever
le demagogue who may get into Congress al
u seek to increase his popularity with tt
: unthinking masses by squeezing the Ii
m out of ''soulless corporations
u PARNELL's DISGRACE and fall has prob;