The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-08-07
SEATTLE. WEDNESDAY. AUG.
NOTHING FOR THE GOVERNMENT,

The Union Pacific question. SO Tar as
the foreclosure of the government lien tn
that road Is concerned. seems 10 De pre-
senting n new phase Facts have beeh
dug up. presumably by the Union faeltic
attorneys. to prove that the government
has no legal mortgage Oh the property
that no default in the payment OF inter-
"a. ian be shown and that the govern
ment cannot. If il would. foreciose on any
part OF the debt prior TO 1888. Moreover. "
is asserted that If the moneys which the
company claims from the government Tor
services rendered were added to the sink
ing fund I'm the United States treasury
20 the credit of the road, the gross
amount would be ample TO meet the en-
tire principal and interest charges on
United States bonds up to the issues due
in 1893.
The contention seems TO be that at the
present time there being no legal defaul.
In either principal or interest. the gov
eminent has suffered no loss and is not
entitled to any relief at law or N equity.
Moreover. az there IL over sl6.0oe,0oo ac-
oufnulated and constantly increasing in
the sinking fund I'm the United States
treasury, the installments OF principal
and interest due in 1896. 1896 and 1897 may
be considered as provided for. Therefore.
tho read not having defaulted. the gov
ernment Is ia no position to foreclose. 1t
Is claimed that there has never been a
mortgage executed by the railroad to tie
government and that no eeaveyances
which could be construed as mortgages
have ever been delivered. The only inter
est the government has in tho property.
then. is in tho nature of a lien and the
railroad people claim that there is moth
irg in tho United States statutes provid-
ing for the foreclosure of any such lien.
Whatever may be tho actual or supposed
rights or the government 10 the Union
Pacific property, II is safe 20 predict they
viii be vigorously contested. The manner
In which the finances of the company
have been engineered from the start has
been dlsgraceful. From the time when
congress permitted the road TO substitute
its own bonds for a first lien which the
itssh AtJH 1At AbEa-
panys property there has been nothing
but the rankest corruption IN the man
ipulation of the corporations affairs
There has been q system OF organised
robbery from the time tho first rail was
laid. aud while this footing has becn go
Ing on many individuals interested In II
have become enormously rich and the
road itself despoiled. deprecated and DIS
credited.
The read VIII probably be sold TO the
hondholdora for song. or In other words
transferred 20 those who have already
MIXED II dry and can again start in or
another scheme OF scientific wrecking
The government will have To awkward,
look on and acknowledge itself bunkoed
It would seem. however. that Il ought q
have remedy iefs. and that is against
all those who have profited by this ri
sautic steal Tho road now is WORT
no more than the first mortgage. aud &
the United States is to get redress for IN,
wrongs already committed II would seen
probable that IL may have TO be ny sal
lowing up tho wreckers and comnellius
them TO dlsgorse a portion OF their plum
der.