The record-union., 1895-10-21
PACIFIC RAILWAYS.
REPORT OF GOVERNMENT DI-
RECTORS OF THE L. p.
Think it Desirable to Terminate the
Present Relations With Rail-
road Properties.

WASHINGTON, Oct. 19.-The Gov
eminent Directors of the Union Pacific
Railroad Company to-day submitted
their report for the fiscal year to the
Secretary of the Interior. one of the
directors. Representative Cooms of
Brooklyn. during the year made thor
ough examination of the entire Pacl1lc
Railroad system, and submitted sup
Elementary report.
After giving a history of the Govern
ment's connection with these roads and
the present status of this debt, the COM
mission makes the following recon-
mendatiOns:
"First-That 1t is desirable to termi-
nate the relations between the Govern
ment and the railroad properties, either
by accepting a fixed sum of money or
determinate amountof bonds. rather
than to continue for an indefinite num-
Der of years the existence of an unSatlS-
factory and imperfect lien, the super
vision and protection of which neceS-
sarily involves constant friction be-
tween the departments of the Govern
ment and the management of tn rail-
roads.
THE complications attending the
terms of any proper adjustment are
vastly increased by the retention of the
railroad extending from Kansas City to
Denver, and from Denver to Cheyenne,
which is causd by the fact that the lien
of the United States on the Kansas Pa
cific Railroad extends only to a point
1903 miles west of Kansas City,so that
the adjustment of both liens prior to
the lien of the United States involves
amounts in proportion to the claim OF
the United States.
For the purpose of bringing to a con-
clusiOn the relation of the Government
with the railroad the passage of bill
containing the following provisions is
recommended:
"First-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 Rail-
way Company, institute proper proceed
ingS for the protection and foreclosure
OF the lien of the United States from
Omaha to Ogden, and similar proceed
ings for the protection and foreclosure
of the lien of the United States from Og-
den to Sacramento, and thence to San
Jose.
"Second-The Secretary of the Treas
ury shall have power to pay, settle and
adjust all amounts due. Or to become
due, for the principal and interest which
are secured by liens prior to said liens
of the United States affecting the prop
critics above referred to, including the
power to take the assignments of any
foreclosure DEGREES or mortgages Secur
ing such prior liens if necessary.
''Third-The entire railroad property
extending from Omaha to San Jose
SHALL under orders of court to be en-
tered in suits to foreclose said liens, be
forthwith sold under direction of the
Secretary of the Treasury to such pur-
chasing committee or corporation au
thorized to take title to same as will
agree to refund the entire amount adj
vanced by the Government for the dis
charge or purchase of prior liens and
of interest on the same, and an amount
not to be less than the sum limited by
Congress as q minimum to be received
in satisfaction of its claim against the
Union Pacific and Central Pacific Rail-
road Companies. If at such proposed
sale no committee or corporation will
bid the minimum price so fixed, it shall
be the duty of the Secretary of the
Treasury to report the facts to the next
session of Congress for such further &C
ton as regard to the minimum bid as