New-York tribune., 1897-12-08
KANSAS PACIFIC FORECLOSURE.

The overshadowing Importance or other sub
1ects which constitute the leading features Of
President McKlnley's Message should not be
permitted to divert attention from that portion
OF the document which treats OF the interest OF
the Government In the approaching sale on De
cember 10 Of the Kansas Pacific Railroad under
the decree Of foreclosure. BY fortunate
turn of events the Government was enabled to
realize the full amount Of its claims for the
princpal and interest Of the subsidy debt due
from the Union Pacific at the sale OF that prop
erty under foreclosure proceedings last month
II has been objected to that transaction, and
perhaps properly. that the Government, In deal
ing with the Reorganization Committee-which
had raised the money and taken all the steps
preliminary to the purchase. under an explicit
understanding With the Governments repre-
entatives-indllged in sharp practice, which
would have subjected individuals or corpora
tions In similar circumstances to censure. But
the National Treasury being the gamer there
BY, the public as the beneficiary IN the emo
was more inclined to congratulate itself upon
the advantage than to critclse the processes oy
which 1t was gained. However that may De,
the transaction Is now closed. and that special
phase Of a troublesome complication involving
great possibilities Of mischief terminated
In the pending foreclosure sale OF the Kansas
Pacific, however. question OF precisely sim
liar character Is presented. In the solution OF
which the danger and risk OF wild venture
upon new untried and practically revolutionary
policies are no less involved. The question, N
its simplest form, Is whether the Government
to avoid the loss Of a portion Of Its investment
In this subsidized road, shall itself assume and
nav the prior lien Of over $7000OO0 and there
upon take possession Of the property and under
take hereafter to conduct its operations and
manage It's affairs. To the active and talkative
political schemers and dreamers who include
Government control and operation Of railroads
among their plans for bringing In the mlllen-
mum the ownership Of the Kansas Pacific does
not present nearly so many attractions as dld
that Of the Union Pacific. The latter was a
main line. with terminals and established con-
nections. which might easily have been made
the stepping-stone to a great Government trans
continental road The Kansas Pacific, on the
other hand so far as the subsidized portion,
about to be sold under foreclosure. Is concerned,
Is only fraction Of a road, with no Western
terminal, ending abruptly at mile post on an
open prairie Its possession would be worth
less without the expenditure OF large sums to
establish connections and purchase terminals.
II Is already paralleled to considerable ex-
tent, and competing lines would find II an easy
matter to complete the parallel for It's entire
length These disadvantages. however. DO not
disturb the POpulists, who are clamorous for
Government control at no matter what cost TO
the National Treasury.
The upset price for the property. or the sub
sidlzed portion, as fixed by decree OF the court.
Will yield TO the Government $4,000 900 on Its
claim Of nearly S13000OOO. The President an
nounces In his Message that, IN order to pre-
vent loss to the Government, he has instructed
the Secretary Of the Treasury to deposit a sum
sufficient to qualify the Government as bid
der, and ito bid at the sale a sum which will at
'1east equal the principal Of the debt due to the
Government" but he asks, "in order 10 remove
"all controversy. that an amendment OF the law
"be Immediately passed explicitly giving such
powers and appropriatng In general terms
whatever sum Is sufficient therefor" Such an
authorization ought certainly to be had before
any steps be taken by the representatives OF
the Government in the direction Of ownership
and operation OF railroad property. That action
would be only the entering wedge for the ini
tiation Of q radical-if not. indeed, revolution
ary-change In our traditional policy. It Is
quite possible that the step already taken In
making the deposit necessary to qualify the
Government as bidder may be simply for ef-
feet upon the Union Pacific Committee or other
bona-fde bidders, and possible, also that It
may in this as In the former Instance result in
their raising their bid. But we cannot help
thinking, If 1t is seriously proposed that the
Government shall enter the lists as a bona-hde
bidder. with the resultant risk Of the property
being knocked down to It, that It will be a
monumental blunder. The Government can bet.
ter afford to lose the entire debt than to assume
the prior lien and 60 into the railroad business