The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-07-23


istered yesterday at the Knutsford. This
eminent journalist is now journeying
toward Alaska, going by way of Oregon
and Washington. He will linger for a
week or two on the coast and then take
passage on the steamer Queen for the
north.
To HERALD man, who saw him at the
hotel last evening, Mr.. Rosewater ex-
pressed very decided opinions on several
matters OF moment.
THE UNION PACIFIC MIDDLE.
"What is to be done with the Union
Pacific railway?' was the first query.
Congress has fought shy of this oues-
ton of the disposition of the Union Pa
cific for several sessions; but at the next
session some definite action must be
taken. Several ways of settling the
matter have been proposed. In order
that they may be understood it is neces-
sary to state that the present debt on the
main line is secured by two mortgages.
The first mortgage secures an indebted
ness of S33, 900, 1000, which is due to New
England and English capitalists. The
second mortgage is given to secure the
Indebtedness of which the government
guaranteed the payment. amounting to
SSS3, O00, 600 principal, and SIS, 1000, 600,
accrued interest. This makes an indebt-
edness of S84, 900, 900 on the main line, to
which must be added bonded indebted
ness of $140, 100000 on the branches.
''The first scheme proposed is to have
the government fund the indebtedness
secured by the second mortgage. by ac-
cepting therefor sixty or one hundred
and then to secure another loan on first
mOrtOapQ- This qnhlm6 not
good; as it would saddle upon
the western country unalterably high
rates for three generations; and be-
sides il will leave the road in just its
present condition. Another scheme pro-
posed looks to the purchase OF the road
by the government. Objections to this
readily present themselves, as this would
make it necessary for the government to
assume the debt secured by the first mort
gage, aud would give the purchaser only
the main line. To secure the branches
the assumption of the enormous indebt-
edness OF $40, 600, 900 would be necessary.
1t seems to me the best scheme would
De for the government to allow the road
to be sold under the first mortgage, which
becomes due in 1894. 1t would thus prob
ably lose the amount of the Indebtedness
it is trying to collect; but the advantages
would more than pay for such loss.
debts of the road, and would thus put il
in a situation to give lower rates to the
west. Then it would allow the Union
Pacific to stand on equal footing with
other roads. 1t now has bonds euualine
| S77 ZOO per mile and stock equaling 500,
900 per mile. Another road could be
built for $50, 900 per mile. This would
| give rival road such an advantage that
the Union Pacific could not keep in the
race. 1t would be far better to lose the
! $51 ,000, 900 than either to kill the road OF
to saddle onto the people of the west such
high rates. rs
THE SILVER QUESTION.
"What are your views on the silver
question:
81 have always been bi-metallist. In
| 1878 l supported the Bland bill when il
was before Congress, and this year shall.
favor bill that will make a coinage
standard for the two metals. / think
that neither the radical goldites nor rad
ical sjlverites viii gain the day, but be-
| lieve there will be some sort of compro-
mise, such an one, probably, as viii
establish a ratio of 20 or % to l. The
ratio adopted Will probably become the
world s ratio for gold and silver coinage.
| We need not expect that the silverites
will win concession of 16 to 1, as thai
would put US on a level with Mexico.
CAUSE OF THE DEPRESSION.
81 do not regard the silver question as
the cause of the financial depression, but
regard it as matter which is very i'm.
portant at this time. The principa
cause is the initiation of values that has
been going on for good many years
Railroad corporations and, in fact
corporations of all kinds have been max
| ing new issues of bonds and stocks
whenever occasion offered until they
have overreached the value of their. prop.
erty. This will be found to hold good, also
in regard to land and mines. These
stocks, bonds and mortgages have been
given to the banks and trust companies
as securities, but when the time came tc
pay these loans the securities were founo
to have no foundation. Their men be.
came suspicious and refused credit. Elk
change would not be given on distant
points. This wiped out 95 per cent. o.
the currency of the world, as checks
notes and other negotiable paper forms
SO per cent. of our medium of exchange
Certainly the situation became bad. We
had almost the same condition In 1877;
that we are having now. There was nc
silver then. We had only greenbacks
| The same cause, initiation of values, oper.
ated then and will operate in the future
as soon as imitation can again get full
swing. Even at this time, when thu
falsity of the speculations of these in
fationists has been shown, they are be-
ginning again to reach out and ar
again making money on fictitious values
The reconciliation of silver will cas-
the situation to certain extent, but we
will not reassume our former prosperity
until credit is restored.'
STATEHOOD FOR UTAH.
'sWhat are your opinions as to state
| hood for Utah?''
81 have not thought very much on tn
subject, but it seems to me that will
polygamy entirely eliminated from thei
lives the people of Utah hay
nothing that should prove an objec
ton to elf-government. No mat
ter if the Mormons will rule
If they are in the majorit,
it is perfectly right that they should.
a Catholic colony should succeed in con
trolling the government of state tina
would not prove q stumbling block in til
way of admission. Why should religion