The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1891-09-26
THE UNION PACIFIC.

A Boston telegram says that the New
York banking house of DRExEL, MORGAN
81 Co., has agreed to surrender the personal
obligations of JAY GOULD, FRED L. AMEs
and SIDNEY DILLON to the extent of s., 000,-
600 loaned to the Union Pacific, and in lieu
accepting the company's collateral notes on
the same basis as the other creditors. Now
that this bank, which was the largest
single creditor, has accepted the GOULD
DILLON scheme for adjusting the company,s
debt, 1t is probable that the plan will go
through and the Uuion Pacific be relieved
of.the embarrassment which was SO severe
a lew weeks ago as to threaten
collapse of the great corporation. The
scheme contemplates not merely relief in
the matter of the current debts, but the
acquisition of money needed for the imme
date improvement of the lines and the de-
velopment Of resources
This news, following the publication of
the annual report of the government direc-
tors, will be well received in the west The
report mentioned is q very sensible one.
While the directors are the representatives
of the company's chief creditor, the federal
government, and are presumed to watch
the interest of the United States
rather than look after the affairs of
the company proper, they have not
been led astray by the politics which Con-
gressmen and others persist in mixing up
with the Union Pacific. The directors see
that the company is carrying an immense
debt, which cannot be paid according to the
terms of the obligation, and the likelihood
of the debt ever being cancelled is greatly
lessened by the interference of the govern
ment in the management of the corpora
ton. In effect, if not in these words, the
directors say that the government
should take into account the diff.
ferent conditions and circumstances
prevailing to-day from those which
existed when the road was built
and the debt incurred; that the creditor
should recognize the fact that whereas the
company at one time enjoyed a traffic
monopoly and had things its own way.
from the prices it charged to the manner
in which 1t operated the road, now the
corporation is subjected to the liveliest
kind of competition, ana at the same time
is restricted by rules and regulations i'm
posed by the government in its competitive
efforts. The directors recommend that the
government debt be adjusted on such lines
as will be equitable, and then
that the handicap now imposed be
removed, the company being permitted to
manage its affairs in its own way and COM
pete for business with other roads which
are not controlled by politics and are not
prevented by the government from taking
advantage of circumstances and conditions
to make money.
We regard tbs recommendations nc
proper, and hope they will be accented nv
Congress. In saying this there is no sue.
gestion of an approved of the corruption.
the fraud, the roguery which characterized
the building of the Union Pacific. The
criminals who participated in the
gigantic scheme of theft and plum
der should have been punished. But
all that has passed, punishment of the
guilty is out of the question, aud the matter
should be dealt with as it exists TODAY.
The company cannot lay its debts when
they shall fall due; the government does
not want the road and the people do no,
want the government to take it; as the
nation cannot get its money when il be
comes payable, and cannot get it at ali
unless it takes its clutches of the corpora
ton. the very best thing to do is to extend
the debt, on fair and equitable terms as &c
interest, until such time as the company
can, in reasonable probability, pay the
amount, and then standing aside, let the
| owners of the Union Pacific manage their