The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-10-30
THE GOVERNMENT DIRECTORS



ANY attempt TO take up the Pacific rail-
road Indebtedness with blanket mort
gage 10 run for a hundred years VIII meet
with great opposition. both in and out OF
congress. The scheme TO fund the indebt-
ness OF the roads TO the government at
lower rate OF interest and for long time
Will also meet with very marked disfavor.
From the reluctance shown by the roads
IN the past to make any attempt TO pay
from the earnings what the government
was Justly entitled to. X is not at all
probable that any great enthusiasm will
be displayed for any scheme which would
practically mean a continuation OF The old
swlndle.
The government directors OF the Union
Pacific are. fortunately. willing to give mp
the old Idea OF extending the time for
payment OF the debt TO the United States.
ard are also inclined to abandon the
scheme TO refund this debt al a lower rate
OF interest. They adhere. however. to
their previously announced opposition 10
the government owning and operating the
road. but suggest plan OF reorg snlzation.
which is perhaps the best yet offered. and
may possibly afford an opportunity for
showing what the roads could do IL run
under government: control
The new plan is for the United States to
foreclose It's lien on the main line of the
Union Pacific from Omaha 70 ogden. as
well on the line OF the Central Pa
eihc from Ogden - san Jose. with this
foreclosure, tho government IS also to as
sumo the first mortgage claims upon both
lines This would virtually give 4 the
ownership and control OF the property,
and With & the assumption 81 the liability
Tor The FIRST mortgage bonds This having
been done. the government directors pro-
pose that the United States shall offer
the road for sale 20 any corporati,, thar
wiz agree TO pay on She fret mortgage
claims. and. IN addition thereto. such an
amount as nxed by congress. as would re-
imburse the United States IN whole or in
part for lis subsidy expenditures on be-
half OF the roads. now secured by Sec
ona mortgage.
This seems a practicable scheme. ana
would certainly put both roads on some
thing like business basis. VITA the gov
ernment oncs the owner. even though a.,
an Improbable piece OF properly. as
judged ~ the outlay. there would ~ some
satisfaction az having & free from The IN
Guences Of ths gangs which have become
ricA through wreckinx g. There would -
something tangible in the govsrnmen.
having actual possession instead % an mr.
certain len which has proved OF Itie
value wAIle ,he roads have been MANAGED
AMI operated by private corporations.
There would. A. least. Sc some consolation
ia the fact tAat the property was no long
er the prey q saIlroad nuauclers AMI
stock board gamblers
Il is very prooaeIs also. that when The
government bad become the owner q tia
roads II weuld hola them Il IS extremely
uaiikely that any private corpsra
wosIl9 become purchase under any ss1rh
terms as the government directors nro-
pose. namely. the assumption % the rrst
mortgage claims and the repayment TO the
roverumeut 81 the subsidy Eiven in the
past Sach purcsass price would prob
ably 20 far naoro than thc roads are worth
and as a business investment would not Re
ssaicsensiy attractive - warrant private
capital making such an oTer. The gov
crumeat cossd &fgor8 q raa tire roads az
su-h an outlay. bat i Is very doubtful y
private corporation eoujd.
TIE temporary ownership by TIRE UniGea
States would. therefore. mean a perua-
neat centred Win 70 buyer under the
terms proposed. the government would
have to keer TIE roads and run gAeus. ua-