The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1892-11-23

Commissioner Taylor Recommends Pas
sage OF Senate KefunIing Bill.

WASH NGToS CITY, Nov. :2.-The specia, re-
port of Hon. A. Taylor. Commissioner of rail-
ways, relative to Senate bill 7jl. providing for
the funding OF the debt of the Pacific railroads.
which he has made a part OF his annual report,
has been received by Secretary Noble. The re-
port, after recit;ng that touds have been issued
in aid OF these reads, closed thus:
am OF the opinion that, in view OF the fore
going. iacs- IL would be sound business iudg-
mcrt 20 settle with the railroad companies ard
extend their debts under the provisions OF the
accom- panying bill, rather than rcclose on ta2
foad-, and seek reimbursement for their cost 20
tic government, either through their sale or
o1erGtton. aia sure that when the facts of the
situation are iuily understood aaI the alterna-
tive OF settlement or foreclosure il square V
presented. rs Ii must &c, congress viii decide
and the people VIII approve ths decision, that il
Is wise 10 make q settlement which pTom IS
10 secure payment Of Mi the inter
est ard part OF the nrincipa! f the deets,
each six months from the date OF settlement,
rather than - rcsor, 10 !oreclosure that involves
the additional investment Cf an amount equal
10 the original debt. K Is time 10 DO getting
that money out %! She bonded railroads rather
than putting more into them By passage e
ta.s bill the government hazards nothing.
wsives 10 existing night, releases 30 present
securities anu linia.rs no existing COL. cations.
II tie railroads refuse Il accept X. or. aCce tH.
neglect or reuse 10 comply with is PROVISION
the interests OF the government, viii not D..
thereby IN any way pat in Ieril. II the raj. raa
companies accept and discharge their nb!igr-
,io2s under II they agree. then i. " luld
prove haI ny solution OF the vexed situation.
Careful stuiy OF ali the facis OF the situation
leads ne 70 the conclusion that The interests o.
the government aud people along the lines .:
the bonded ROADS woa,d be hest protected Ay
such a settlement IS - provided for in the
amended bile submitted herewith
This mater VIII b. discussed by Secretary
Nool> in his forthcoming annual report as 10
doubt i; will by the president in his annual
message. The general purpose of the bill in
question is The extension Of the deb. 10 loo
INF 81 ~ nor
portion OF the principal 10 be paid az the expira.
ton OF each SIX months during that time 90
that at the end OF 100 years the entire debt WI !
have been ex.iucgishct. Tie cornrniSsi1ao-
suggests several amendments n the bill as =
row stands. and thinks that with such amend
neu;s Il would fully protect the interests O!
the government and secure the entire nayman;
Of au the money. principal and interest. Cue
from the bonded roads. He does not he.
lieve that any measure fixing Il shorter
period OF payment or a higher rate o! inter
est would be accepted by the railway com
panles. He thinks 1t useless iQr the
government TO insist upon terms OF settle
Iaent taa: the railroad companies will not agree
70. AMI fo!.y tcr the con- anies 10 agree 70 con
dt:.ons no. warranted by their present financial
Condition or future prospects. No advantage
can accrue - either party by imposing OF agree
lag 10 conditions that viii no. or cannot be
complied with. The -ail-osd companies should
ha made 20 pay as rapidly as they can be reason
ably expected 10 earn money TO pay with. aud
the rate of interest fixed should be equal with
the rate the govenmen, is compelled TO pay on
Its obligations. All present security should pe
held and such further security required 10 be
given SIS the companies have in their power to
give. The commissioner eomeats the PROPOSE
isoa that the government should ioreclose its
mortgages aud take possession OF tie roads as
wholly lmrracticable,
There was due tie United States On December