The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-01-27
READY FOR THE REILLY BILL,
Report On the Pacific Railroads
Filed at Last.
History Of the Union and Central
Pacflic Lines Renewed.
No Posit,ve Recommendations Made. But
the Senate Committee Make Some
suggestions and Comments.

debteGneaE of the Pacific railroads, to-
gether with hrisi skstoh OF the his
tory of both .he Uoion PaciGc and
Central Pacific systems, which is dons
under the following heads as zsgards
the Union Pacific:
First-The chSr.sT, construction OF
she road and subsequent lsgislstinn.
Seeond-.Tbe railroads composing She
system s5 pEessnt and their financial
status.
Thiri-Polioy of cwaiDe and control.
ling branch lineu az road and 9th or ont-
side investments.
Fourth-Measuges Of relief.
NO RECOMMENDATIONS.
The part of the report devoted to Pa
cfc railroads deals with the charter
and legislation, roads embraced in the
system, indebtedness, assetS and earn.
ings. The report makea no direct reo-
concentrations, hut urges the impor-
tance OF taking up tbs question of the
Pacific road indebtedness lie the follow
ing terms:
1.-THE pgenent practical question Of the
indebtedness Of the bond-aided Pacific
railroads 10 of vast magnitude and of
highest importance Its solution and
settlement and C final adjustment Of the
relations OF tbs government with theHe
roads, looking GO the ultimate discharge
OF this indebtedness and of the rehe bill
tatioE Of th5 roads 60 that they may
subEsyve the purpose for which they
were originally created, is imperativsly
demanded, mot only by tho United
Stasts and tins roadF themselves, but
also By tho aommuUisies and people
whish they servo with railroad facilities
and by the hol5sgs Of valid securities is
sued OF epGssnssad by she railroad oera-
pREiss.
THE MEASURE CT RELIEF.
"TAe measure Of relisf 10 b. provided
ought to bs comprehensive and far
reaching enough to embrace ell these
interests, IL SHOULD especially aim TO
preserve tbs rights Of she United States
In the premises, and to be such as the
roads can live under. Whatever Of
partnership relations exist between the
United States aud these rosds should be-
terminated in such manner as shall be
to the interests of both. In dealing with
this subject more regard muet be had
for present conditions than for past
grievances. Recollection of the credit
mobiler and other unjust msnipuls-
tions should not overbalance the sober
business thought of today or outweigh
considerations and conditions obtaining
at the present time"
After discussing various measuFeg OF
making secure the government indebt.
edness on the Union Pacific, the report
Gays: Another course aeema 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 condition subse-
guent, and fer a breach of the same the
United States may, at the maturity of
the debt, proceed to forfeit the charter
of the company, and wind up its busi-
neHs through @ receiver and take ita
chances for recovery OF whatever por-
tion of the debt it may be able 60 OBJ
tain. From what We have said Re think
it sure that the amount would be very
small indeed. It is question, how
ever. on che whcle, if il mighs not be
the beet thing undsr she circumstances
to do"
AaAINsT FORECLOSURES.
To this ths report adds: "Your COM
mittee, however, do NOS wish TO be
understood az recommending Ehis meas
ure of rslief, but merely suggest ii Ss en-
alternative in case othes remedies bs-
lievsd now 80 hs bsttsr should fall"
Positive ground ID taksn againaa tho
govern ment's forselosing the lisnE snd
operating the Seads. TIC thia plan they
say there are many grave objeetions, ead
add: "No considerable nnmber of
citizens of the United States, certainly
not a majority, have aver declared for
the government control of railroads,
and fewer yet have ever seriously en-
tertained the idea that the government
should enter the field OF rsilroading as
the owner and operator of hus enc
line of transcontinental railroad,
and this oomnnittee in coaApsny with |
the other transcon tinentsl linss OF rSil- |
roads operated by individuals. Besides !
the main line of the Union Pacific and |
Central Pacific (Which were Intended by
congress TO constitute ons trane-
continental linsJ thsre are NOV in this |
United States four other lines rsschios
from the Missouri river TO thu Pacific |
ocean, and having shsir connections
with eastern trunk lines. We think 1t
clear beyond question that aE financial |
luVoetM6Ab7 tii0 Op6EhblUu Vi bI0 DOuu~ |
aided Pacific roads by the government
would, BIB a fat failure, aud we are
abu ihfly satisfied ths. on she quss,
ton governmental policy il would at
pref Wind under existing circumstan-
css, o.iff ise, and would be fraught with
uerioIa circumstances to the republic
and With resulss far reaching and in the
end luxurious.
AN ALTERNATIVE.
In oase of the failure OF these plans.
they Suggest that the only alternative
would seem to be to refund the Union
Pacific debt for considerable period of
tim4 at rate of interest commemorate
vita the earning capacity of the road,
This" says thu report, sis this plan
which has the most favor with fnsn-
ciera and those who have given the
subject much attention." Ae to the
period for which the debt should be
extended, and with respect to ths rate
OF interest, no special recommendation
is made. THAT" says the report. will
be matter for future adjustment. when
the details of the plan shall be
more fully developed. At present our
recommendation will be confined gen.
orally to the matter of reiunding of the
debt for such period and at such rate
OF interest as shall enable ths company,
under ordinary circumstances and bust
ness conditions, to meet the current inH