St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-01-27
PLAN FOR REHABILITATION
Should Especially Aim to Pre-
serve the Rights Of the
United States.
NAY FORFEIT THE CHARTER
But It is q Question Whether
1t Would Be TO Any
Advantage.

WASHINGTON. Jan. p. - Senator
BrIce. chairman OF the senate committee
on railroads. today presented report
from that committee concerning the Pa
cifc railroads. The repurt Is not based
on any bill before congress. and is in
tended simply TO supply the senate
with all The information attainable in
the indebtness of the Pacific railroads,
together with a brief sketch of the
history of both the Union Pacific and
Central Pacific systems which Is done
under the following heads as regards
the Union Pacific:,
First-Ihe charter. construction of
roads and subsequent legislation.
SecOnd-The roads composing he
system at present. and their financial
status.
TEird-The policy OF owning and con-
trolling branch lines of road and other
outside investments.
EOurtH-MeaSur OF relief.
The part If the report devoted TO Pa
ciic railroads deals wiki the charter
and legislation. roads embraced in the
system, Indebtedness, assets and earn
iugs
mendationS. but urges the Importance
of taking up the question OF the Pacific
road Indebtedness IN tie following
terms:
The present practical question Of
Indebtedness of the bond aided Pacific
railroads is Of vast magnitude and OF
the highest Importance. Its solution
and settlement and the final adjustment
OF the relations Of the government with
these roads. looking to The ultimate dis
charge of their Indebtedness and the
early rehabilitation OF the roads, so that
they may suOserYe the purpose for
which lLpV were originally created, is
imptrativeiy demanded. nOL only by the
United States and tue roads themselves.
but also by the communities and the peO-
pie which they serve with railway ia
cilties and the holders OF vaiIl Securi-
ties issued or guaranteed by the railroad
companies.
HE measure of relief to be provided
Onght TO be comprehensive and far
reaching enough to embrace all these
interests. Il should especially aim 10
preserve the right Of the United States
in the premises. apd to be such us 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 interest OF both. In dealing
with this subject, more regard must be
had for present conditions than for past
grievances. RecOllectlOnS OF the Credit
MObiiier and other unjust manlpula-
lions should not Oyerbalance the sober
business thought OF today, nor out
weigh considerations and conditions Oh
tanning at the present time.
After discussing various measures of
making secure the government indeOt-
edDess of the Union Pacific, the report
says:
Another Course Open.
Another course seems to have been
left open by the government under the
sixth section of the act OF 1862. which
provided that grants were made upon
the condition that the company should
pay the subsidy bonds at maturity.
This Is condition subsPquent.and for a
breach of the same the United States
may at the maturity Of the debt proceed
10 forfeit the charter of the company
and wind uD its business through a re-
ceiVershinp and take its chances Tor 4
recovery OF whatever portion OF the
debt ii may be able 10 obtain. From
what we have said above we think it is
sure that amount would be very small
indeed. A question. however. on the
whole, if it might not be the best thing
under the circumstances 10 do
TO This, however, the report adds
Your committee, however, do NOT
wish 10 be understood as recommending
this measure of relief. but merely sug-
gcStS itas an alternative i'll case other
remedies believed now to be better
should fall
Positive ground is taken against the
governments fOreclOsing the liens and
operating the roads TO this plan they
say there are many grave objections.
ana add:
No considerable number of citizens
or the United States. certainly not q
majority, have ever declared IN favor of
governmental control of railroads. and
feWer have ever seriously entertained
the idea that the government should
enter The field OF railroading as the
owner ard operator of but one trans
continental line OF road. and thus come
IN competition with the other trauscon-
tlnenlal lines operated by private indi-
yldpaiS. Besides tie main lines OF the
Union Pacific ana Central Pacific
(Which were intended by congress To
make and constitute one transcouti-
mental line), there are now in theCnited
States four other lines reaching from
the Mississippi river to the Pacific
ocean and having their connection with
Eastern trunk lines. We think il cleai
that as a financial Investment the opera.
Jon OF the bOndsaided Pacific roads Dy