Evening star., 1895-10-19
THE UNION PACIFIC
Report of the Government Directors
of the Railroad.
RECOMMENDATIONS As TO SETTLEMENT
Suits for Foreclosure and Sale of
the Property Advised.
VIEWS OF MR.. COOMBS

The report of the government directors Of
the Union Pacific railroad has been made
to the Secretary of the Interior. The board
recommends the following as a basis of
| settlement of the debt. to be accomplished
by congressional legislation:
Foreclosure Suits.
The Attorney General shall, Immediately
after the maturity of any portion of the
debt due to the United States from the
Union Pacific Railway Company. or the
Central Pacific Railway Company, institute
proper proceedings for the protection and
foreclosure of the lien of the United States
from Omaha to Ogden, and similar pro-
ceedings for the lire from Ogden to Sacra-
! mento, and thence to San Jose.
The Secretary of the Treasury shall have
power to pay, settle and adjust all amounts
due or to become due for principal and in
terest which are secured by liens prior to
the liens of the United States, including the
power to make assignments of any FORE
closure DEGREES securing such prior liens
If necessary.
The Entire Property to he Sold.
The entire property to be sold to such
corporation or purchasing committee as
will agr .e to refund the entire amount to be
| advanced by the government. If no COM
mittee or corporation shall bid the mini
mum price fixed by Congress, it shall be
next session of Congress. The purchasing
committee or corporation shall have power
to complete the construction from Sacra-
mento to Oakland but shall not be allowed
to consolidate with other transcontinentaI
lines.
Until the purchasing committee is found
the control of the properties shall be in the
hands OF the courts having Jurisdiction of
the foreclosure proceedings Of government
liens.
What Would Be Developed.
The board says that the fixing of the
minimum price Of the roads would be at
tended with some difficulty. but free ne
COLLATION. with all competitors desirous of
bidding would soon develop the limits of
the price to be obtained. They believe that
such a scheme would realize a better re-
turn to the United States than could be
reached through any funding bill or extern
sion of the present Indebtedness. Portions
Of the government debt of both roads will
mature early in 1896, so as to support the
Jurisdiction of the court in suits instituted
Mr. Coombs' Report.
William J. Coombs. one of the directors.
makes a report to the board, which is
filed with the report. He says that the
aid extended to the Central and Union Pa
cifc was intended to form a continuous
line from the Missouri river to the Pacific
ocean, and that it was expected this line
would BE- operated under one system, and
the traffic between California and the cas-.
was relied upon for revenue. As a principal
creditor. he declares, the United States
has right to demand that this plan shall
be adhered to.
Il have no hesitation in saying" con-
tinues Mr.. Coombs, las result of my in
vestigations, that a violation of this under
standing is the main cause of the present
deplorable condition Of the roads.
Il find that almost from the beginning
there has been q lack of cooperation be-
tween them. AS for the last ten years the
Central Pacific has been leased to and un-
der full control of the Southern, the Union
Pacific has been absolutely at its mercy
in the matter of through passenger and
freight traffic. 1t is currently reported in
California that compulsion is brought to
bear on the shippers who wish to ship by
the Central route to the east to compel
them to ship by the Southern route, and
tender to the interests of the Southern Pa
cific system. This has created in that state
an antagonism to a settlement of the debt
to the government"
He says that a settlement cannot receive
the sanction of the representatives of the
states west of the Missouri river unless
the aided lines shall form continuous
system.
Mr.. Coombs discusses the tangle in which
the Union Pacific finds itself, and saws
that the network of branch lines which
that read has built up, especially in the
states of Kansas and Nebraska, could we'll
be left out of the scheme or reorganiza-
tion.
He thinks that tine Union Pacific and
Central Pacific conducted as a trunk line
could be made prosperous.