The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-01-23
SEATTLE. THURSDAY. JAN. 80.
NOW FOR THE PACIFIC ROADS


For the next month there promises to be
q very thorough sitting OF Pacific railroad
matters. The house committee TO which
the various bills have been referred will
begin its hearings next week, and the SEN
ate committee has notified interested par
tses to appear before II on February L
Something must be done speedily. The
first mortgage on the Union Pacific is In
process OF foreclosure. the first installment
OF the debt TO the government is past due
and unpaid, and the remainder OF the debt
Is rapidly approaching maturity. Upon the
adjustment OF all these debts depends the
future policy OF the roads, and in this ad-
5ustment thousands OF people, from Omaha
20 San Francisco. are interested. for upon
wise settlement rests the prosperity OF the
vast section through which the line runs.
There have been two classes OF plans pro-
posed fer getting the roads out OF their
present difficulties. The Vanderbilt Union
Pacific plan contemplates a consolidation
Of the first and second mortgages In
huge blanket TO run l0o years. with an is
suanee OF 100000 in preferred stock and
$4,000 mile-about four times as much
as the road cost, aud can fttingly be
termed the stock tobbers' plan. Senator
Thurston's plan Is for the government TO
sell It's claim 70 the highest bidder, who
would presumably be the security holders,
for which claim he seems to think 40 PEI
cent. OF the original outlay would he a fair
MI -,
toned contemplate the legaliEatlon OF all
the existing fictitious capitalization. the
ratification OF all fraudulent diversion OF
the Union and Central Pacific revenue to
the pockets OF the original managers That
the Of tarim charges would be maintained,
OF course. goes without saying.
The second class or plans proposes 10
effect u thorough reorganization. The roads
are 10 be wosnd Up BY foreclosure sales
and thenccforth be operated on an actual
value basis In keeping with this idea IS
the government directors proposition. They
advise that the United States foyeclose its
Hen OF the property and assume the first
mortgage Indebtedness. which ~ the CHI
canery of congressman ia 1854 was suhsti-
government is then So offer the road TO any
corporation which shall agree 20 ray or
To 8rst mortgage claims anI reimburse the
government IN part for the subsidies given
for the construction OF the read This plan
aud several others az similar purport pro
pose TO wipe on tho slate ana start IN anew.
ghe watcred stock is dotted cut aud the
u ,fs H..
are expected 90 run the roads economically
anE-Qulte a novel idea for those Pacific
railroads.&c. consult the interests OF pat
fonS
There Is large seilNoai lobby en- thu
ground az Washington City ard as the rail-
road wreckers and thieves have been a6le
Tor over thirty years 70 set the better oe
congress there Il some grounds fer fearing
that the present solution VII not be Wholly
in the interest q The government ana TIE
people. \ generous subsidy was arst
granted tNe read suelctant % buna
IT, 10 secure ths rspaymsz; 81
which first lien en- the prop
erty was Siven. TIE nan,pulstors then Sc
cured permission 70 iszus first mortgage
tonds. making the government lien sse-
on3 lien. These tsst mortgage bonds
brought enough 10 bVJlj TIE road. so thai
the sharks so, their capital stock for aoth-
ing ana the amount q ne SUBSIDY went into
their pockets. Mex satisfied with this whole
sale lootsRge a scod part q the earnings
have been goaslet up, scant Preparations
have been made 10 take up tAs mortgage
Indebtedness and as Tor repayiug the gov
egnmso,t subsidy, that has come - De re-
Farled as a Joke. After years - th-s high-
.wayuIaasAIp. a day % reeko%ing has a.
rived.
Tae E22rsa3 pe0s!s vii 40 ssaAt Assssass