New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-12-18
THE PACIFIC RAILROADS.

committees have entered upon the CONSIDERATION
of measures for the settlement of the Fac.hc
Railroad question and the adjustment or the
debts due the Government from the subsidized
corpOrat tons encourages the hope that decisive
action will be taken in the matter by the pres
cnt Congress Indeed. the maturity OF the debts
and the proceedings in foreclosure on behalf or
the first-mortgage bondholders OF some Of The
companies whose lien is prior to that OF the
Government make II absolutely necessary FOR
Congress to act. If any part Of the debt Is to he
saved In this state of affairs two alternatives
nresent themselves for the consideration OF Con
gress. Either steps must be taken looking 10
foreclosure of the Government lien. which in
wolves payment OF the first mortgages at the
start and then the management ana operation
Of the roads by the Government. or there must
be an extension OF the debts upon some terms
by legislation 1t may safely be assumed that
no action will be taken looking To Government
control and operation Of the roads Considered
purely rs business proposition 1t would De III"
height Of folly. since IL would require me I'M
mediate payment Of more than $GO.oW."~. when
the roads could be rebuilt or parall"led Tor
much smaller sum As business Embarrassing
il would he absurd. On the other hand. viewed
as a new political departure 1t would he hyihg
In Tho f,cc of the most recent and most emphatic
expression of public opinion on the subject.
Government control and operation OF railroads.
was one of the Populisrc fads embodied In the
Chicago PLATFORM upon which the voters pro
nounced nnmlsakable Judgment last month.
The ONLY reasonable remaining proposition 10
be entertained, if the Government Is TO retain
and improve its present security. Is some pan
for refundng the debt ana extending IN" TIME
for payment. The passage Of some measure Oh
this character seems probable. Indeed. except
for the possibility that under the rules OF the
Senate tactics OF obstruction and delay may he
successfully rcsorted TO, as has been the ease
so many times hitherto. there would be no d"npt
obout IT, For II IS evident that n considerable
minority In both houses are in favor OF this us
poslton Of the matter. For many years AFTER
the agitation Of the subject began II was treated
hy Congress In n hostile spirit with feeling of
resentment that dated back 10 the building OF
the roads and the Credit Mober scandals. In
poln, Of fact few people believed when the char
ters were granted that the roads would ever In
built The enterprise was looked upon n vision
AIRY and chlmerlcal But when 1t turned ont that
the giddy adventures who undertook II hal
money 10y the operation. Congress began To look
upon them with suspicion and subject their pre-"
ceedlngs to the closest scrutiny. In The belief
that the projectors of the enterprise had driven
a sharp bargain and got the better Of the GOV
eminent. Congress set about getting even with
them. and has been so occupied ever since
though the original offenders are nearly all dead
and the properties have changed hands scores
OF times In the interval
In the course of the long debates upon III"
subject great stress has been laid upon the il't
that The companies have NOT paid all The interest
as II became due. 40 that they are now In default
for an enormous sunni the ncighhorhooh of
double the amount OF the original loan But II
so happens that this condition Is due almost On
trcy 10 Congressional laundering. The post
ponement Of interest payments. except To an
extent especially provided. until the maturity
Of the debt. was the deliberate act Of Congress
specifically set forth in the charter. Naturally
enough the companies awaited themselves OF IT,
This aroused opposition. which did not cease
even when the action Of the companies had been
Justified by n decision Of the supreme Court
From that time forward Congress directed all
It's efforts 10 hampering the roads III their opera
ton in every way possible. leaving them nj the
mercy Of competitors. and compelling them To
resort TO circuitous and costly processes in the
developmen, and extension which was necessary
TO their profitable operation.
Another blunder in the original charter to
which the enormous increase OF the original
debt Is chiefly II not entirely due and but for
which they might have escaped disaster. was
I'm the singular lack OF foresight In emitting from
the subsidy bonds the provision for redemption
before maturity which was 80 marked feature
OF all other Government issues. But for this
the debts which were running M q per cent could
have been refunded within ten years AT hall
that rate. and the interest charges cut down
about 50 900 600 annually. The saving Of this
sum annually for the last twenty years would
roads and Of the Government. Congress may
well consider these rather important facts in
the discussion Of terms Of adjustment or settle
mcnf The management Of the roads may not
have been above crcl>m but II Is to be taken
into account also that the Government. in lis
relation of sovereign as well as Of creditor, Is
not bameless There have been mistakes on
both sides Congress will do well. however. in
! it's present consideration Of the matter To let
/ them all pass and conine itself to the purely
business view of the question rs between debtor
/ and creditor.
THE TEXAS
Mr. Herberis effort to prove The Texas not
] foil,, 10 mt .nux Incl tnxy fut