New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-18
THE P4CIFiC RAILROAD DEF.


Pacific railroads to the Government. ~
bonds Issued By the Government IN ald OF inc
construction Of the CnioA ana central iac'io
reads begin 10 mature III 1875. lhc' "'o
secured by second mortgage upon inc prop
critics that is. upon the portions oi the present
lines built under the original charters OF inc
Union Pacific and Kansas Pacific raiIrcad
comronios-now consolidated in the mon IA
c;tc Railway Company-aId the central. no"
,,do, looso IA the Southern Pacific Company
These debts will not be paid according 70 inc
letter of the bonds except by some process .,
,cfrndinc the detail, of which will depend
upon legislation by CongrCs'. Inc ALTERNATIVE
for refunding is foreclosure OF the sccoho HUH
gage. This involves paymcn; OF the iiiN' mo'l
gagc bonds equal III amount 10 inc or'S'iiu
i.sue of Government bonds. ana consequent
upon that action the control ana management
of th, roads by the Government. Coh'foi VI
railroads and telegraph lines by the Govern
mont is one of the aims of the new party
which under various names, has risen into
,,romnonce in the West and Southwest and
,v;u undcr the next Administration, claim con-
sidcIation as a powerful ally OF the Dem'ra'lc
marty and one Of the most potential iac'orS j."
the election of Mr.. Cleveland. II Is 4n'c
likely that the representatives, OF TINS party
popuists, as they now call themsciveS-"Ih
opnosc to the last extreme oil parliamentary
tactics any legislation looking to re'undihg'
ovtonsion or any other disposition % the qncS-
t;on EXCEPT upon foreclosure proceedings whicA
will put the Government III control o. the iO''''
This. notwithstanding the fact that icdcmp-
ton of the first mortgage bonds Wono cos.
nearly. if not quite, As much As the fof'coScu
limos could be built for to-day. and the sun
moro important fact that should the Govern
mont Get possession under foreclosure OF the
roortcapcd portions of the several roads IL
would find itself the owner OF railroad lines
without terminals and without supporting
branches: beginning and ending nowhere III
nartiruar. without Connections at either emu or
any auxiliary system 10 contribute the tfahic
necessary TO make the trunk Inc Scit-Nnppoi'-
ing lis competitors would be wealth.! III"
uroSperous companies managed by business
mon OF largo experience ana uhqueN"oh'u
ability who would like no better lun IMAM -
meet in the field of competition S'ch lallf'an
managers As would naturally turn up III the
Govcrnmcnt service. Among these competitors
vould be the existing Pacific railroad com
nanics which. retaining possession OF thcH
hropch systems could. M comparatively small
ontlav. parallel the forcclosed portions oil their
original lines and continue business WIN inc
old organization or some other, unhamp' req ~
= large Government debt and constant cd'rdi
interference This would he Their naiuI4I al
most inevitable. course Of procedure All thl>
Of course. makes no difference with the adVo-
catcs Of Government control VINO do not con
sidcr cast or consequences 80 long IL i pAteIili
Government provides the one and suffers the
ether What they want Is trial OF tho cN-
pc,mcnt of pa,crnaliSm at any cost. fvcn II
il were desirable 10 try il. an examination "i
tho n,tent fact, would show tina; ii would be
much cheaper for the Government to start
fresh and build road than 10 lOiccIo>c 'hc
Pacific second mortgages.
If is the settlement OF this question, a. we
have said. that will give Mr.. Cleveland Adj
miDistratlOn more trouble than any DINER oi
domestic nature that now seems Likely to pre-
sent itself Congress has been iumblng WIN
il for the last ten or fifteen years with no
result. except - furnish the speculative pnhhc
additional elements Of chance IN dealing IN the
stocks Of the companies concerned. Inc APP
proacbing maturity cf the loans must make an
end Of this by closing up the transaction. The
supervision Of the Pacific roads under existing
laws is a part Of the duties 81 the Interior
Department, 10 which belongs the Office oil
Commissioner Of Railroads. Within the PROV
ince Of that Department will naturally lie the
adjustment Of details Of any final settlement
with the railroads that Congress may deter
mine upon Mr.. Cleveland is not unacqualnied
-. In, t,sl, ,,I TX Inp 10
made specific reference to the subject. and each
fine recommended that Congress should take
action in the matter There is every reason
10 believe that he is hostile to any policy look
ing to foreclosure and Government control.
and that he favors legislation looking to an
extension Of the debt on reasonable terms.
But il is by no means certain that the gentle
man whom he proposes 10 appoint SECRETARY OF
the interior is of the same mind. He seems,
from the published rep rts concerning his ante
cadonts to have made a record in his own state
as an opponent of railroads, and 1t may Ica-
sonably be suspected that on that question his
SUMMARIZES like those of most OF the anti
railroad men in the South and Southwest, lie
in the direction Of the POpuSi movement aad
i'm favor Of Government control Of railroads.
If that suspicion is well founded, Mr.. Clcvc-
land and his Secretary of the Interior may find
themselves at odds at an early day. Doubt
less the President elect has forgotten his eN-
Ucrience in 1889, when some OF Secretary
Lanars appontceS in the office Of the Com
missioner Of Railroads came near involving
the Administration in a scandal that only the
interference OF tho President himself prevented
il. Unless Mr. Iloic Smith is warned he may
rcpcat Lamai'S mistakes.