New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-01-17
THE PicIfIC RAILROAD DEET.

rho \oycr,bl. statement Of earnings az the
Union Pacific system shows an increase WHICH,
taken in connection with the improvement III
fine same direction during several months
mast furnishes much encouragement aS To me
eventual outcome Of existing complications. Inc
imnrovcmcnl !, not hy any means - marked
~ to held ont tine promise 10 the unioriunat"
.tockholGrrS of any return upon their invest
mont but is sufficient M least 10 furnish 10 Con-
cross an INTELLIGENT basis upon which 10 proceed
in connection with the measures of legislation
which have been proposed lookin. 80 definite
settlement IF the debt due tn Government
Tho receivers. ar. entitled g. great credit for
fine iudiciols and economical mana@cm ut of III
nroporfv. hv which operating expenses have
brcn 50 reduced dat III" proportion Of incr'A'"
in net earning, +, cousd rahly in excess of III"
increase in gross income They have demon
s;ratod thr fact that under Wis and prudent
conduct of il, affairs the complny may be- able
with some concessions from >rruri'y-hod'tS ana
creditors 10 get on il i",; and resume u stand.
iug among .olvon; corporations. This fa'i Is
# great Importance io thc Government ~ IN"
larse>. creditor of the c.mpluy. holding only
the security for rs debt u g Second mortgage
upon q portion Il ID, MAIN lin
For The h.ai adjustment of ihr debts II tn"
Union AMI Central Pacific companies now ma
turing there are several propositions before Con
erc,s. Some of them contemplate foreclosure"
If lhr mortgages. payment oi iAr prior Lens
and the consequent Government control and
management Of tn property: other. look {"
sale in opcr markc' under certain limitation,
Of the Governments claims. others 10 fore
closure under the first mortgages. and some al-
lGwancc to the Government out ~ The securities
Of the relr-anz'd company, others - fore
closure proceedings under which the Govern
mont may enter into possession. of The property
- both roads. making continuous line from
the Missouri River - ihc Pacific Ocean. and
aftcrward make such disposition Of The property
~ W ull relieve Tho Government ~ the rcsp"n-
>ibI.ty Il the management and Reimburse IL -
far rs possible for ii> original advances ami
accumulated interest All ~ these cmlnai"
either fron HE representative OF the n"n
Pacific or from politicians OF the lately con
spcuous but now fading iopu,i party, who
favor Goycrnmcn, control OF railroads. tell
graphs and transpOralion 'ml1ni">. ON IN"
other hand. a plan which supposed - hnd
favor with the Central Pacific people Is ON
bodied in Il bill introduced hy Senator Frye
which provides for an extension OF the debt now
rapidly maturing for Il long term of years al 4
rate of interest amounting 10 > per cent. WIN
a sinking fund provision for The gradual "N-
tncton Of the entire dcbi.
In existing conditions j, ought to b. possible
for jhr representatives, of the two systems 10
come 10 II common understanding and agree
upon a plan satisfactory 10 both. and 10 CON
grcss as well, for final adjustment Of their
relations with the Government. and 10y conSc
ducncc with each ether. II is evident Of course
10 any one familiar with III" situation that the
interests of the two companies are not in all
respects Identical But while diverse they need
not be hostile. The Central Pacific. il must BE-
remembered. j. at the present moment a solvent
corporation. and handles all the traffic which
convcrecS at ogden from several competing
roads; while the | Mon Pacific, on The other
hand j. in the custody Of the courts and oper
atcd under n premiership. Consolidation such
as is proposed would consequently be of no al
yantag. 10 Tie Central while il would he dis
advantageous 10 the competing roads
The relations of these two transconiincna
roads with the Government have been before
Congress in one form and ancib"r now for more
than twenty wears. and have seemed each year
further than ever from Il solution. But the mat
ter is now so Urgent that this Congress must
take some decisive action. And. IL has been
SUGGESTED i, seems to us that the first step in
that direction might wen be IN agreement be
tween the representatives. Of these two com
panes upon "A reasonable plan, which should
have regard for tine interests Of both and for the
| Government, which Is their largest creditor.