New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-01-17
THE TNTON PACIFIC DEBT

The uropoSlton uf the receivers and the Reor-
r,fizaiion Committee ~ the Union Pacific Rail
WAY Company for a Nifty years extension OF The
debt II thar company To the Government al a
rate " interest which It's present earnings show
that II can pay. upon the condition that the
claims prior 10 the Government lien be extin-
.niishrd bv an assessment upon the stock. Is one
that should be- discussed from n purely business
mint of view There may be differences Of
opinion AS 10 what the company can really az
ford to pay. terms If payment. sinking fund pro-
visions. time Of extension and other matters OF
detail but there can be- no difference ~ opinion
among reasonable intelligent men rs to the main
fact that 1t Is Il business proposition and should
he so treated In that view Of 1t the scandals
connected with the original enterprise or the
later ones In which Mr.. GoHld and others fig
ured have no relation 10 the matter In hand.
All that is ancient history. The thing 10 be con
sidcrcd and the only thing. Is that the debt Of
this company To the Government, amounting tn
some 33,OOOOOO. is about to mature, and there
is no money in the companys treasury with
which 10 pay 1t. In This state OF things but two
alternatives are offered Either the Government
lien must he forccloscd and the Government en-
ter into possession Of that portion Of the com
pany's roads covered by its lien, and embark in
the business of transportation itself, or II must
agree upon the best terms possible for the ex-
tension Of the debt with such increased security
rs II can obtain.
The company through its receivers and RcOr
ganization Committee makes definite PROPOSE
ton 1t Is antagonized ut once by the counter
PROPOSITION that the Government should fore
close It's lien and proceed to operate the lines
In the interest If the public" This, Il Is hardly
necessary TO point out. is n Popullstlc notion,
and would be- If carried out. long stride in
the direction Of Socialism But we have OBJ
served with no little surprise that II receives
the approval and support Of some who have not
been suspected heretofore of a leaning toward
either Socialism or patcrnasm. The argument
if il be argument In It's favor seems to be that
the present stockholders Of the company have
no rights which the Government Is bound to
respect since they must have bought their stock
with full knowledge Of the scandals attaching
to its management. 1t Is urged that there are
no innocent stockholders" consequently no one
with any rights TO be regarded. This savors
somewhat more Of passion than Of sound judg
ment; but suppose II be conceded that the Gov
eminent was deceived by the men who built the
road and made money thereby, Notwithstanding
the Government has saved enough money In the
cost Of its own transportation to cover the whole
debt twice over; suppose that It was whecdlcd
ont Of IAN imperial land grant" Notwithstanding
the patent fact that the building OF the road
brought lands otherwise worthless into market
and enhanced their price so that the Govern
mcnt was five times richer for It's thrifty lib
eraiy Let these things he granted How IL II
at all pertinent to the fact that the company
owes the Government and the Government
wants the money. and unless 1t Is proposed to