Omaha daily bee., 1895-12-08

it would be compelled to make new in
vestment of forty odd million dollars in ad-
dition to the amount of its bonds now out
standing and the balance of ACCUMULATED
interest aggregating something like sos, ,000-
900. In other words, for the government to
take possession of the Union Pacific railway
now or at any subsequent time. means an
investment of about O0O0, 900 for 1880
miles Of road-more than $4,000 per mile.
BUYING FOR WHAT PURPOSE?
"If the government takes possession of the
road by assuming and paying off the first
mortgages, 1t must do so for either one or
two purposes, first to go into the railway
business and operate the line as govern
ment enterprise or second, to resell to some
purchaser who will pay the highest obtain
able price. If 1t Is the part of good govern
ment TO inaugurate policy of national own
ership and operation of the railroads of the
country, and to begin by the purchase Of
800 miles Of road at $55 900 per mile of
course 1t Is useless to consider any phase
of adjustment or settlement of the Pacific
roads Indebtedness. / should look upon the
government ownership and operation Of rail-
way lines with great apprehension. Such a
policy, once determined upon would find no
halting place until all Of the railroads of the
country had bsen brought under government
ownership and operation, and in my judg-
ment would n can such an accumulation and
Capitalization of federal power must in
evitably result in practical despotism and
subversion of the liberties Of the people.
Laying aside the idea of government own
ership and operation, every man must see
that the time has come for speedy and
fnal settlement Of the Pacific railways in
debtedness. That settlement, whatever it Is
to be, must be authorized by this session OF
congress- or else the governments rights
and interests will be seriously jeopardized
Foreclosure suits of all the first mortgages
ON the entire line are already well advanced
and II nothing Is done by this session Of con-
gress, final DEGREES will be entered and the
road sold long before congress again assem-
bles. In the language of one high in au-
thority, 1t is condition, and not theory,
that confronts the country
REFUNDING IMPRACTICABLE.
For years congress has had under consid-
Grafton numerous refunding bills. differing
somewhat in detail, but all proposing a re-
funding of the government debt by Issuing
new second mortgage government bonds at
low rate OF interest, with periodical pay
ments running through a long term of years
All such plans have so far been rejected by
congress, and, In view of the present prac-
tical Insolvency OF the companies and the
great falling OF in railway business IL is
not believed that any of the present owners
or stockholders Of either the Union or Central
Pacific companies are now in a condition to
accept or comply with the terms Of any such
refunding scheme. 1t is safe therefore, to
come about through the passage OF any act
to refund or extend the government bcnds,
There are many people In the west who
prefer to see the mortgages on the Pacific
roads foreclosed and the government claims
entirely wiped out for they believe that this
would result In what they term 'wringing
the water out CT the property and securing
its reorganization upon reasonable capitali-
cation, enabling the new company 20 es'ab-
lish lower tariffs. II this result were certain
to follow, i should favor an appearance by
the government in the present foreclosure
proceedings, which would result in the
speedy sale Of the roads OF the Union Pacific
to the highest bidder on foreclosure sale and
from which sale ! imagine the gGyrrnmen Mt
would receive but little, " anything. In
my judgment however, any purchaser OF the
Union Pacific road at the foreclosure sale
would reorganize II and recipi,aiize IL ex-
actly to the same extent as would the Uur-
chaser of the same property under any CHER
theory OF settlement that can ba r has teep
proposed, and the price the Union Pa
cihc brings, or the amount which the govern
ment secures In settlement OF its claim win
have but little or anything to DO with the
tariffs thereafter TO be established,
GOVERNMENT DIRECTORS PROPOSALS.
1.-THE government directors have proposed
a plan looking to an accomplishment OF the
original purposes Of the Pacific railways
legislation by consolidation OF the original
Union Pacific main line with the Central
Pacific. thereby forming continuous through
line operated by one company from the Mis-
souri, liver to the Pacific ocean. The result