The Dalles daily chronicle. [volume] (The Dalles, Or.) 1890-1948, 1895-01-28
Report From the Senate
Railroad Committee.
NO DIRECT RECOMMENDATION MADE
1t, However, Urges tho Importance of
Taking Up the Question of Pa
cihc-Road indebtedness.

WASHINGTON, Jan. Ex-senator Brice,
chairman of the senate committee on
railroads, today presented a report from
that committee concerning the Pacific
railroads. The report is not based on
any bill before congress, and is intended
simply to supply the senate with all the
information attainable on the indebted
ness of Pacific railroads, together with
brief sketch of the history of both the
Union Pacific and Central Pacific sys-
TENS. The part of the report devoted
charter and legislation of the roads en-
braced in the systems, their indebted
ness, assets aad earnings. The report
makes no direct recommendations, but
urges the Importance of taking up the
question of Pacific roads Indebtedness.
After discussing various measures OF
making secure the government indebt-
edness 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
RAONAAO0 bAoS OAAO nCLO I4f10C
upon the condition that the company
should pay the subsidy bonds at mutur-
ity. This is a condition subsequent and
for a breach of the same, the United
States may, at the maturity OF. the debt,
proceed to forfeit the charter of the com
pany and wind up its business through
a areceiver, and take its chances for re-
covery 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. question, however, on
the whole, if it might not be the best
thing under the circumstances to do.
Your committee however, does not wish
to be understood as recommending this
measure of relief, but merely suggests it
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 the
report says there are many grave objec-
tlons, and adds:
s'No considerable number of citizens
of the United States, certainly not a
majority, have ever declared for govern
ment control of railroads, and fewer yet
have ever seriously entertained the idea
that the government should enter the
field of railroading as the owner and
operator of but one transcoutinental
line of railroad, and thus come in COM
petition with other transcontinental
lines operated by private individuals.
Besides the main line OF the Union
Pacific and Central Pacific (Which were
entered by congress to make and consti-
tute one transcontinental 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 it clear, beyond ques-
ton, that, as financial investment, the
operation of bond-aided Pacific roads by
the government would be fat failure.
And we are abundantly satisfied that On
the question of governmental policy ii
would, at present and under existing
circumstances, be unwise. and would be
fraught with serious consequences to the
republic, and with results far-reachine
and in the end injurious''
In case of the failure of these plans,
the committee suggests that the only al
Tentative would seem to be to refund the
Union Pacific debt for a considerable