New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-05-06
PACIFIC RAILROAD LEGISLATION.

trated by methods of indirection, cunnlngV III
tcrposed either by the representatives OF conf
netting lines or by demasogues and SPECTATORS
interested in keeping the question open Tor use
rs political capital or for personal GAIN III
has happened repeatedly that when Dill mas
been reported which demOnstrably commanded
the support of a majority in both houses. 1t mas
been killed by the sharp tactics Of small but
uncommonly active minority, who resorted to
diatory proceedings. plausible but fatal amend
ments or the diversion of an investigation. to
accomplish their purpose. The present unprom-
islng situation is only the result OF Congress
sional fumbling Instead of trying to put the
Governments largest creditors in the way OF
having their debt Congress has pursued them
with punitive legislation, hampcrcd them with
restrictions. fostercd disastrous competition.
and deliberately put them at disadvantage
with rival corporations, until. having driven
them into insolvency. the only question remain
ing. now that the debt has begun to mature, is
whether the Government will agree to some rea-
sonable terms of settlement with It's debtors
whereby Ii will be able TO save something from
the wrcck-mcantmc taking its heavy hand of
from them and giving them an equal chance
with competitors-or. rejecting all offers of COM
promise will foreclosc its own mortgages, and.
after having added $GO00000O TO its investment
by taking up the prior liens, undertake by Gov
eminent management and control to make Itself
whole
That is the simple question before Congress
now A bill providing for settlement, by ex-
tension of the debt for long term Of years at
low rate Of interest with sinking fund pro-
visions and ample security. has been agreed
upon in committee. and is now pending There
is reason to believe that it has the support Of
majority Of both houses This is the point at
which the fine work Of the political dcmagogue
and the representative of rival corporations
comes In. The former goes directly to his pur
pose in the form of an amendment introduced
by Mr. Hubbard, Of Missouri, which provides
that demand be made for the payment Of the
debs-which cannot by any possibility be COM
piled wth-and that upon refusal the Govern
mcnt shall ut once enter into possession Of the
mortgaged properties and proceed to manage
their affairs and conduct their operations This
has the merit, at least, Of being Il concrete
presentation of n rather important question of
Governmental policy. Except as 1t delays prog
ress, however II does not endangcr the bill. An
other amendment proposed by Mr.. Hepburn. Of
lONd, anu, us we HIltd's itNtpl'h
by the committee, is more subtle in character
but we suspect not less fatal In its effect. 1t
follows the line of policy always heretofore re-
sorted TO by rival corporations In putting upon
the Govcrnment-aided Pacific roads restrictions
in their handling Of nterchanged traffic. which
put them at such disadvantage with competing
and connecting lines that they cannot hope to
conduct profitable or successful business It's
injurious effect Is plainly to be seen that
The Omaha Bee a journal which has been
for years one Of the most active and persistent
opponents Of the Pacific roads protests against
II at considerable length as unreasonable and
inequtabe,' and says that under its operation
1T Is question whether the road would not
"have to be again in the hands OF receivers
'in the next ten years" 1t remains TO be said
that il the opponents OF a settlement succeed by
these indirect methods either in delaying action
or fastening conditions upon the bill that will
make II ineffective and useless. It will only be-
Il repetition Of the experience Of the past. and
another illustration of the inability Of Congress
TO treat n purely business question between
debtor and creditor with business common
sense. The result will. Of course. be total loss
to the Govern ment OF the debts due from the
Pacific roads.
Meanwhile. In the case Of the Union Pacific
the Governments chances for recovery are slow
ly but surely diminishing through the disntcgra-
ton OF the system. Its most profitable branch.
from whose increased earnings and improved
prospects 1t has derived its chief encourage
ment during the last year. IS In process OF sepa-
rate reorganization. and it now seems probable
that by the middle OF September the Oregon
Short Limo will hp Tvs nnI.r a MI
independent management, with certainty Of
paying all fixed charges upon the new basis and
a fair prospect of surplus for the stock 1t is n
noteworthy circumstance that the foreign hold
crs of Short Line securities. who have been in
srumcntal in the reorganization were driven
to take this course by the failure Of the last
Congress to take any definite action looking 10
a settlement Of the Union Pacific debt Las,
year they were willing and anxious to make adj
vances TO close up the whole matter and hold the
greater system intact. Failing In that they de-
termincd TO pursue to foreclosure their liens
upon properties they knew TO be valuable which
were free from any complications with the Gov
eminent.
1t is hardly possible that the failure OF this
Congress to enact some satisfactory and de-
cisive measure for the settlement OF this vexcl
question will bring us any Ecarcr to the goal OF
the demagogues hopes and the Popullsi's cx-
pectatons-Government control and manage
ment Of railways, telcgraphs and other business
enterprses-but 1t seems inevitable that it will
hasten contamination in which that will be
the only alternative TO the absolute sacrifice Of
the debts due from the Pacific roads.
LEGISLATIVE BUFFOONERY
The Mayor has dsapproved Dry Dollar" Sui