Omaha daily bee., 1897-01-16
FORECLOSURE THE REMEDY.

Washington Star: The government will
now proceed to foreclose its mortgage, as
indicated by Mr. Cleveland in his message
to congress at the beginning Of the session.
The executive branch OF the government Is
confident that in such proceedings the in
debtedness to the public can be in large
part or wholly collected through the compe-
tiion of bidders at foreclosure sale, II the
managers OF the roads permit the matter to
so 50 far without a reasonable offer OF I'M
mediate settlement.
Evening Wisconsin: AS no legislation to
secure the governments interest in the
Iacifc railroad indebtedness Is possible in
this congress- there Is little doubt that the
president will direct foreclosure proceedings
against the Central and Union The first
mortgage bondholders have commenced pro-
ceedings against the Union Pacific and the
government can join them to secure its
own lien, while Independent proceedings
will be instituted against the Central "a
ciac. 1t Is said II the government and
the first mortgage bondholders Will sell
their Interects in the roads the Vanderbilt
interest will buy at a liberal figure. II Is
time this matter should be disposed OF TO
the best advantage Of the government.
San Francioco Chronicle; The proposition
Of the Central Pacific stockholders, put Tor
ward by Judge Rooney of New York, who
represents the English owners, If 1t can be
carried out would speedily settle the whole
trouble OF the Indebtedness of the Pacific
reads Judge Rooney says his clients nave
q plan which contemplates raising the money
to pay off the government lien, and take
control of the road. The doubtful feature
about this story is the implied assumption
that the government would place any
obstacles In the way of such settlement.
Certainly If the proposition is a cash on
the nail" one. as may be inferred, there can
be no reason why the government would not
jump at it, But If Judge Rooney has ar
extension al mex to his plan ii will probably
be subjected to the same criticism as the
refunding proposals.
New York Journal: The plan outlined in
the Morgan bill has many points of eX
cellonce. Briefly stated, 1t Is this: The
stock of the companies is to be reduced to
al equality with the value OF the property;
the government is to issue bonds to replace
the present first mortgage bonds, and until
interest on these bonds has been paid and
sinking fund for their redemption established
there will be no dividends. Management CT
the roads Is to be confined to nine trustees
at moderate salaries, and all existing offices
and the directorate will be abolished Under
this practical scheme government ownership
dSes not seem either 'impracticable" or
'chmerical," as 1t is designated by one OF
Our contemporaries. Nor should any
prejudice remain against government owner
ship Of railways, in view of recent expert
ence. which shows that actual management
by officers of the federal courts. in the
case OF the Northern Pacific and the Santa
Fe, is vastly superior to private manage
msnt, which brought these properties to the
verge of ruin while its managers enriched
themselves at the expense Of the bondhold-
eTs. There Is every reason to believe that
government. railways would be as economi-
cally and satisfactorily conducted as the
government postal service.