Omaha daily bee., 1895-12-08
THE PACIFIC RAILROADS
Review of Their Condition and Prospects
from Government Standpoint.
BECRETARY SMITH ON NATIONAL CONTROL
Feasible ana Profitable Plan, Forti-
fed by Statistics-Refercnce to
Commission RecOm-
mended.

The report Of Hon. Hoke Smith, secretary
OF the interior, contains an extended review
of the relations Of the national government
with the bond-aided Pacific railroads
their earnings, debts and obliga-
tions. and the several plans offered
for settlement Of the governments
claim. Included are statistical tables show
ing the amount of bonds issued and the date
Of maturity, also the secretary's conclusions
as to the best means OF protecting the gov
= ernments interests.
That portion of the report will interest the
great west. and is as follows:
The government directors of the Union Pa
ci6c Railway company, as the result OF q
personal inspection and examination Of "the
railroad, It's roadbed, and all its appur-
tenances and rolling stock" as operated and
maintained by the receivers, find the physical
condition Of the properties "up to the best
standard"
They also submit a comparative statement
Of the results of financial operations for the
years ended June 80. 1894 and 1895. which
exhibits decrease In the gross earnings of
the aided or main line (bridge junction,
Omaha, Neb., to a point five miles west Of
Ogden. Utah. 1.O29.4S4 miles, said five miles
being leased to and operated by the Central
Pacifc). of $4,000.
The report reviews at considerable length
the litigation pending in the courts Of Colo
RADIO, Kansas and Nebraska, having for its
object the foreclosure OF certain mortgages
upon the properties of the Union Pacific (main
line), the Denver Pacific and the Kansas Pa
ciHc, foreclosure suits having been Instituted
by reason of the inability Of the receivers to
meet at maturity. the interest fall
ing due on the various mortgages
1t presents questions OF great gravity. to
which the attention OF the department and Of
congress is seriously invited" to wit:
~ Whether the properties OF that part of
the Kansas Pacific which lies east Of the
Kansas Missouri state line and which EN-
braces valuable terminals in Kansas City are
subject to the government lien. and (9 what
would bs the effect upon the latter OF a de-
cree Of foreclosure and sale OF the properties
on the main line Of the Union Pacific?
One OF the government directors, Mr.. w. j.
Coombs, In written communication to his
associates and co-drectors, presents his views
with reference 10 an adjustment Of the gov
ernment debt This communication is sub
mitted as part Of the report
The action proposed, which will probably
take the form OF bill to be presented to
congress, is as follows:
For the purpose Of reaching a reasonable
basis OF settlement, and also affordlng to the
government the protection which the present
situation appears to require, We suggest the
following action:
First The attorney general shall
Immediately after the maturity of any
portion OF the debt due 10 the
United States from the Union Pa
cihc Railway company or the Central Pacific
Railway company, institute proper proceed
tngs for the protection and foreclosure OF
the lien OF the United States from Omaha 10
Ogden and similar proceedings for the pro-
lection and foreclosure OF the lien OF the
United States from Ogden to Sacramento and
thence TO San Jose.
Second. The secretary Of the treasury
shall have the power to pay, settle and ad-
Just all amounts due or TO become due for
principal aud Interest which are secured by