The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-01-27
PACIFIC RAILWAYS.
An Interesting Report Presented by
the ScDnte Committee.

An Interesting Report Presented by
the Senate Committee.
Washington, D. c., Jan. Ex-senator
Brice, chairman Of the Senate Commit
tee on Railroads, today presented re-
port from that committee concerning
the Pacific railroads. The report is not
based on any bin before Congress, and
is intended simply TO supply the Senate
with all the information obtainable in
relation to the Indebtedness of the Pa
cific railroads together with a brief
sketch Of history Of both the Union
Pacific and Central Pacific systems,
which is done under the following
heads as regards the Union Pacific:
First-The charter, construction of
roads and subsequent legislation.
Second-The roads composing the
system at present and their financial
status.
Third-Policy of owning and contmoll
ing branch lines of road and other
outside investments.
Fourth-Measures of relief.
The part of the report devoted to
Pacific railroads deal with the charter
and legislation, roads embraced in the
system, Indebtedness, assets and earn
ing. The report makes no direct recon-
mendations, but urges the Importance
Of taking up the question of the Pacific
road indebtedness in the following
terms:
"The present practical question of the
railroads is of vast magnitude
and Of the highest Importance. Its
solution and settlement and "a final adj
justment of the relations Of the govern
ment with these roads looking to the
ultimate discharge of this Indebtedness
and of the rehabilitation of the roads so
! that they may subserve the purpose for
which they were originally created Is
in1peratively demanded, not only by
the United States and the roads them
selves, but also by the communities
and people which they serve with rail-
road facilities and by the holders of
valid securities issued or guaranteed by
the railroad companies.
THE measure of relief to be provided
ought to be comprehensive and far
reaching enough to embrace all these
interests. It should especially aim to
/ preserve the rights of the United States
in the premises and to be such as the
roads can live under. Whatever of
partnership relations exist between the
United States and these roads should
be terminated in such manner as shall
be to the interests of both. Dealing
with this subject more regard must be
had for present conditions than for past
grievances. Recollection of the credit
mobilier and other unjust manipulations
should not overbal2nce the sober bust
ness thought of today or outweigh con-
siderations and conditions obtaining at
| the present time"
After discussing various measures
of making secure the government
indebtedness on the Union Pacific, the
report says:
another course seems to have been
left open by the government under
the sixth section of the act of 1862,
which provided that the grants were
made upon the condition that the COM
pany should pay the subsidy bonds at
maturity. This is a condition suisse
quent, and for a breach Of the same,
the United States may, at the natur-
| ity Of the debt, proceed to forfeit the
charter of the company and wind up
it's business through a receivership
and take its chances for a recovery of
whatever portion of the debt it may
be able to obtain. From what we have
said above we think it sure that the
amount would be very small indeed.
| 1t is a question, however, on the whole,
| if it might not be the best thing under
the circumstances to do"
| To this, the report adds:
"Your committee, however, do not
| wish to be understood as recommending
! this measure of relief, but merely sug-
| gests ii as an alternative in case other
| remedies believed now to be better
Should fail
Positive ground is taken against the
governments foreclosing the liens and
operating the roads. To this plan they
lsay there are many grave objections
land add:
"No considerable number Of citizens
of the United States, certainly not a
majority, have ever declared in favor
of the government control of railroads
and fewer yet nave ever seriously enter
tanned the idea that the government
should enter the field of railroading, as
the owner and operator of but one
ltrans-continental lines operated 10y
Iprivate individuals. Besides the main
lines of the Union Pacific and Central
Pacific (Which were entered 10y Con
gress to make and constitute one trans
continental line), there are now in the
United States four other lines reaching
from the Mississippi river TO the Pacific
ocean and having their connections
with eastern trunk lines. We think il
clear Beyond question that as a flnan-
eial investment, the operation of the
Ibond-aided Pacific roads by the govern.
ment would be a fat failure. All we
are aibundantly satisfied that on the
question of governmental policy, Il
would be at present and under existing
circumstances, uTwiSe and would be