Omaha daily bee., 1896-12-06
sEcRErARr rRAycis, roMpRoMrsr.

SECRETARY FRANCIS COMPROMISE.
IN his annual report nS secretary ol
the interior, just made public. Secretary
Francis comes forward with n now com
promise recommendation for the settle
mrnt or the Pacific railroad debt
What the secretary says as to the small
likelihood that congress would delegate
90 any commission the power to settle
this Indebtedness without making the
decision subject to its approval, rs well
as his assertion that no funding scheme
can prove entirely satisfactory, will be
cordially endorsed by every one who
has made any study OF the subject. The
action which he recommends. however.
cannot fail to encounter opposition, If
not from the representatives of the
roa'ls, certainly from the people of the
region which must depend upon the
Union and Central Pacific for its rail
road facilities. "ln my judgment" says
| Secretary Francis. "it is much better
| for the government to accept a lump
sum in cash for its claim against these
roads if by doing so that claim can be
settled and the connection between the
government and the only roads 1t has
over aided by direct subsidy be clrectu
! ally severed" In word. the secretary
! places the complete divorce of the gov
| crnmcnt and the Pacific roads above all
| other objects TO br accomplished, and
in order to secure that would sacrifice
| To-,
such Il solution would relieve the legis-
latorS and all branches of the govern
| mcnt of troublesome problem and n
| trying responsibility. as Mr.. Francis
contends. will be readily conceded. but
when he insists that il would meet the
hearty approval of the people generally
the statement must be taken with
| limitations.
While successive congresses and sue
ccsSivc secretaries Of the interior have
been making recommendations from
year To year as to the Pacific railroad
debt no two Of which have been alike,
The Bee has constantly and consistently
emphasized the fact that no debt settle
mcnt will be satisfactory to the people
Of the western states that fails to relieve
them Of the burden of interest on the
fictitious capitalization imposed on these
roads as the result of former stock
Watering jobbery and acknowledgements
No settlement can be completely salts
factory that fails to provide for the
operation Of the roads on the basis of
present actual value instead of
valuation five and six times the
cost of reproducing the roads nj
the present time. No settlement can
be satisfactory to the patrons Of the
roads that fails TO provide for the har-
monious operation of tho two roads
under some kind of Il working agree
mcnt rs Il through line from the Missouri
river to the Pacific coast. No settlement
cap be satisfactory that fails to give
adequate protection TO the public against
future stock watering and oycrbonding
that must eventually force the property
into bankruptcy again.
While. therefore Secretary Francis is
right in saying that the amount Of money
realized by the government on its claim
against the Pacific roads is not all-im-
portant and that the attempt to collect
the government debt. dollar for dollar.
by extending the loan mt low interest
rate would not remove the troublesome
subject from congress, but only result
in renewed measures for relief yet con
gress cannot afford TO ignore the right
Of the public and the patrons of the roads
to have whatever settlement is effected
surrounded by safeguards that will
prevent n recurrence of the same evils |
What is wanted is II settlement that
will end the existing Union Pacific re
cciyership and place both the Union |
Pacific and the Central Pacific on n basis |
of Self-sustaining solvency. 1t would BE-
better that the government lose the en- |
tire value Of its claim than that these |
roads be loaded up with colossal cap |
italization in stock and bonds which |
will render competition with other trans
continental lines impossible and keep the |
country through which they pass forever
weighted down under almost prohibtory |
freight and passenger tariffs.
iF llli'fiNllNt tllllUll'l ~ ItI SDilli |
sort of action ON the part of congress. !
The indefinite prolongation Of the Union
Pacific rocciverShip is an obstruction to
tho growth and expansion of the west.
So long as the road is in the hands OF
receivers. so long must it pursue II hand
to-mouth policy. Improvements and cX-
tensions are ont Of the question by
reason of straitened finances Reduced
charges cannot be in
augurated by bankrupt railroad, The
Of the road is hampered IN
II dozen different directions. Relief
either through congressional action or
through foreclosure sale under the terms
of the first mortgage should not be much
longer delayed.