Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1897-03-05

It Is asserted that railroads don't
pay. This is one of the reasons CIV
en- why the government should not
engage in the railroad business. 1t
is also urged as a reason why rates
should not be reduced. Notwithstand-
ing this, however, there seems to be a
keen desire on the part of those who
own the railroads to hold on to them.
Take the Pacific railroads for in
stance. They are covered with first
mortgage loan of $60,OOO,00O. In ad-
dition to this they owe the govern
ment $120,OO0,O00, making a total OF
$1SO,O0O,O 900. No one pretends to be-
lieve that they cannot be duplicated for
less sum of money, yet the compa-
MES are anxious to retain them ana
promise that If the mortgage is not
foreclosed, they will pay off this en-
tire Indebtedness.
President Cleveland informs us that
that in case of foreclosure, bids will
be made to make the government safe
on it's investment. We very much
doubt this. There is a possibility that
in the foreclosure process there may
be a dead African in the woodpile. I'm
less the government intends to make
bid to protect itself there is chance
for it to lose every dollar of its claim.
In the interest of good business pol
icy it should do this, and if 1t fails to
do so there is room for suspicion OF
collision and fraud.
In the light of Mr.. Cleveland's past
transactions too much confidence
should not be placed in the zeal he
displays to the end of settlement OF
the Pacific railroads claim. 1t can
not be forgotten that the negotiation
of the 100000 bond deal with the
Morgan syndicate, through his former
partner, left cloud of suspicion on
him that excited much comment at the
time. Dispatches inform us that two
syndicates have already been formed
for the purpose of buying in the roads
provided they are put up at public
auction. How are we to know that
Mr.. Cleveland is not financially inter-
ested in these syndicates along with
other government officials?
That would most certainly be bril-
liant scheme, and some things begin
to point to it's consummation. 1t would
be necessary to have two syndicates
to bid against each other (ostensibly)
to give the sale the appearance OF be-
ing conducted legitimately. After all
this may be just what the companies
want. 1t was stated in this discussion
of the Huntington bill that the terms
were not as good as the Union Pacific
Company had offered. 1t is possible
that they were made purposely to Sc
cure it's defeat, and to the end of set
thing the matter by foreclosure. No
sane person believes that syndicate
of capitalists will bid more for the
roads than they are worth, and they
are not worth $lS0,O00,OO0. AS the
$60,0O0,00O, most of which is said to
be held by the present owners of the
road, take precedence to the govern
ment claim, it looks like Uncle Sam
may be left out entirely, unless he ex-
ercises the wisdom of business man
and protects himself by putting in a
bid.
There is. however, in the situation
one ray of hope for the people. If the
government secures possession of these
roads it will prove the entering wedge
against private or corporate ownership
of the means of transportation. 1t
would be a step, and an important one
towards the gradual requirement of all
the railroads, and government oper-
alton of the same To prevent this
it is possible that the railroad capt.
talists in the United States would even
outbid the government in the sale of
these roads. For this purpose they
could afford to pay more than they are
worth and they might possibly do so
to defeat government ownership. But
to compel them to do this it would be
necessary for the government to bid
the full amount of the railroad in
debtedness. However it ends, the set
Element Of this question with the dis
cussion incident to it, is likely to give
greater prominence to the transporta-
ton problem during the next four
years than it has ever had before, and
will likely make it one of the princi-
pie issues of the next presidential CAM
paign.