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
& Co., has agreed to surrender the personal
obligations of JAY GOULD, FRED L. AMEs
and SIDNET DILLON to the extent of g, 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, ii is probable that the plan will 90
through and the Union Pacific be relieved
of.the embarrassment which was so severe
a few 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 circumstance,
prevailing to-day from those which
existed when the road was built
and the debt incurred; that the credito,
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 thu
corporation is subjected to the liyelies
kind of competition, and at the same tim,
is restricted by rules and regulations i'm.
posed by the government in its competitiv,
efforts. The directors recommend that tn,
government debt be adjusted on such line
as will be equitable, and the,
that the handicap now imposed b.
removed, the company being permitted t.
manage its affairs in its own way and com
pete for business with other roads whicl
are not controlled by politics and are no
, prevented by the government from rakin
advantage of circumstances and condition
to make money,
We regard tbs recommendations a
J proper, and hope they will be accepted b
Congress. In saying this there is no sur
gestion Of an approved of the corruption
the fraud, the roguery which characterize
the building of the Union Pacific Tn
, criminals who participated in tn
gigantic schems of theft and plum
. der should have been punished. Bu
all that has passed. punishment of til
guilty is out of the question, aud the matte
Q should be dealt with as it exists to-day
9 The company cannot lay its debts whe
, they shall fall due; the government doe
f not want the road and the people do NJ
want the government to take it; as III
nation cannot get its money when it be
: comes payable, and cannot get it at q
q unless it takes its clutches of the corpors
t ton, the very best thing to do is to exten
q the debt, on fair and equitable terms as
: interest, until such time as the compap
8 can, in reasonable probability, pay II
8 amount, and then standing aside, let Il
d owners of the Union Pacific manage the