Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1896-12-07

lbe 8eCIetaTy GALE htteutiOn 10 tne
public interests involved In an adjust
ment OF the obligations OF the Pacific
railroads 10 the government. 1 deem
1t to be an important duty to e.
pecially present this subject to the
consideration Of the Congress,
On January 1, 1897, with the amount
already mAtuTsd, more than $l3 900, :
900 OF tho principal Of the subsidy
aid OF the construction OF the Union
Pacific railway, Including its Kanss
line, and more than S8,000,000 OF like
bonds issued IN aiu of the Central
Pacific railroad Including those Issued
to the Western Pacific railroad com.
pany, will have fallen due and been
paid or must on that day be
paid by the government, without
any reference to the application OF
the sinking fund now in the treasury.
This will create such q deiRuit on the
part OF these companies TO tue govern.
ment ss will give 1t the right to at once
institute proceedings TO ioreclose its
mortgage lien. In addition to this in
debtedness which will be due January
/, 1897, there will mature between that
date anu January !, 1899, the remain.
ing principal OF such subsidy bonds,
which must also be met by the govern.
ment. These amount 10 more than
$50, 900, 900 on account OF the Union.
Pacific lines, and exceed S2l, 000, 900 on
account OF the Central Pacific lines.
The situation of these roads and the
condition OF their Indebted ness TO the
| government have been fully set forth
| In the reports OF various committees TO
| the present and prior CONGRESSES; and
as early ss 1887 they were thoroughly
| examined by special commission
| appointed suant to an act OF Con-
gress. The confederation requiring an
adjustment Of the governments rela-
tions 10 the companies have been
clearly presented AMI the conclusion
| reached with practical unanimity,
| thai II these relations are not termin-
ated they should be revised upon a
basis securing their safe continuance.
| Under n eeciiOn Of the act OF Congress
passed March 0, 1887, the President Ia
| charged with the duty, in the event
that any mortgage or other incum.
brsnce paramount TO the interest OF the
United States in the property Of the
Pacific railroads shall exist and be
lawfully liable to be enforced, to di.
rect the action OF the departments OF
the treasury and OF Justice to the pro.
lection OF the interest OF the Unite
States by redemption or through judi.
cal proceedings, including foreclosure
OF the government liens. In view Of
the fact that the Congress has for 0
plumber Of years almost constantly
had under consideration various pla ma
for dealing with the conditions exist
iDg between these roads and the gov
I o.. I'LL
ju.ti fed In Withholding action un
der the statute above mentioned
In the cass Of the U lion Pacific, how.
tally and Immediately urgent. Pro
ceedings have been Instituted I,
forcloss q nrst mortgage upon thes,
aided parts OF the main line upor
which the government holds seconC
and subordinate mortgage lien. In
consequence OF these pr0ceodings ant
increasing complications. added to the
default occurring on the first day o
January, 1897, condition will b,
presented at that date, 80 far as thiI
company IL concerned, that must en-
phasiEe the mandate OF the act o.
1887, and give to executive duty unde
its prOvisiOps more i'm perative aspect
Therefore, unless Co agrees shall other
wise direct, or shall have previousl,
determined upon different solution o
the problem, there will hardly appeal
to exist any reason for delaying be
yond the date Of the default abov,
mentioned such executive sctioD a
will promise TO subseIvo the public
interests and save the government
from the loss threatened by iurthe
inaction.