The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-12-07
THE PACIFIC RAILROADS.
Unless Congress Acts the Executive
viii Have to Do So.

VIII Have to Do So.
The secretary calls attention to the
public interests involved in an adjust
ment of the obligations of the Pacific
railroads to the government L deem
it to be an important duty to espe-
cially present this subject to the con-
sideration of the congress On Janu-
airy H. 1898. with the amount already
matured more than $l3,000,0 600 Of the
principal Of the subsidy bonds issued
by the United States in aid of the con-
structiou of the Union Pacific railway
including its Kansas line, and more
than Sc 900 600 of like bonds issued in
aid of the Central Pacific railroad. in
Guiding those issued to the Western
Pacific Railway company, will have
fallen due and been paid or must on
that day be paid by the government.
Without any reference to the appllca-
ton of the sinking fund now in the
treasury, this viii create such a de-
fault on the part of the companies to
the government as viii give it the right
to at once institute proceedings to fore
close it's mortgage lien In addition TO
this Indebtedness. which Will be due
January T. 1897. there viii mature be-
tween that date and January i, 1899,
the remaining principal of such sub
sidy bonds. which must also be met by
the government These amount 70
more than $50 900 600 on account of the
Union Pacific lines and exceed $2l,
600 600 on account of the Central Paclhc
lines.
The situation of these roads and the
condition of their indebtedness to the
government have been fully set forth
in the reports of various committees to
the present ana prior congresses, and
as early as 1887 they We're thoroughly
examined by a commission appointed
pursuant to an act of congress. The
considerations requiring an adjustment
of the government relations to the com
panies. have been clearly presented and
the conclusion reached with practical
uniformity that if these relations are
not terminated they should be revived
upon basis securing their contlnu-
Under the act of congress passed
March 80, 1887, the president IS charged
with the duty, in the event that any
mortgage or other incumbrance para
mount to the interest of the United
States in the property of the Pacihc
railroads shall exist and be lawfully
liable to be forced to direct the acton
of the departments of the treasury and
of justice in the protection of the in
terest of the United States by redemp-
ton or through judicial proceedings
including foreclosure of the govern
ment liens. In view Of the fact that
the congress has for a number Of years
almost constantly had under consldera-
ton various plans for dealing with tne
conditions existing between these roads
and the government, have thus Tar
felt justified in Withholding action I'M
der the statute above mentioned.
UNION PACIFIC CASE URGENT.
In the case of the Union Pacific COM
panv however. the situation has be-
come especially and Immediately ur-
gent. Proceedings have been insti-
tuted to f0reclose a first mortgage up
ON those aided parts of the main line
upon which the government holds a
second mortgage lien In consequence
of these proceedings and increasing
complications. added to the default oc-
curing on-the list Of January. 1897 a
[ condition viii be presented at that date
SO far as this company is concerned,
that must emphasize the mandate OF
the act of 1897 and give to the executive