The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-01-13

AN UNHAPPY CONNECTION.
The most unfortunate consequence
of the decisive defeat of the Pacific
railroad funding bill in the house is
that it will maintain, for some time to
come, if not permanently, the improper
and demoralizing connection between
the government of the United States
and great private enterprises. From
first to last, that has been nothing but
a source Of scandal and corruption. The
original loans in aid of construction
were deliberate swindle, and were in
tended as such. The bill lobhied through
congress to release the prior lien Of
the government and make the mort
gage bonds held by individuals a first
charge upon the property was one of
the most shameful occurrences of a
shameful period in our public life. The
ease with which these great properties
were looted by the men behind them,
who never tried or intended to repay
| the debt to the federal treasury, is one
of the most daring financial exploits of
its time. At every step this wretched
connection between government and
| railroading has been the parent Of
scandal, intrigue and corruption Since
| the inability of the roads to pay be-
came manifest, the same influences at
work TO secure the original guarantee
bonds have operated both in favor and
a 70
ness, and the professional lobbyist has
reaped a harvest on both sides of the
question
Had the funding bill passed, 1t might
have secured to the government the re-
payment of its advances, and it GER
talnIy would have put an end for a
! good many years to come to the dis
cussion Of this subject in congress. and
| TO the formulating of schemes to do
| the people out of more money AS it
has been defeated, we see nothing
| ahead but a repetition Of the unfortu-
nate and disgraceful experiences of the
past We hear already that a "syndi-
cate" is waiting to buy the roads UNI
der the foreclosure of their first mort
gage bonds, and then to negotiate
with the government for an adjustment
OF IT'S accounts. Unquestionably such
a plan has been matured, and the diff
Guilty that has been met in treating the
question in the past is not a 1.-THE Of
what we shall find when it comes to
making terms with this new band
of investors. who will have the United
States practically at their mercy. If
the government itself buys the prop
erty outright, it will have to issue bonds
enough to pay the first mortgage
holders, and then operate these roads.
without terminal facilities or connec-
tons, at its own cost That means such
carnival of jobbery and wastefulness
as we have not seen since the DAYS of
contracts for army supplies. IF tbe
government does not do this, but per-
mlts the property to pass into the hands
OF the bond owners, they will take it
for song, or they will consent to me
gotiate" with congress. or a committee
of it, on the basis that the promoters
of the original Pacific railroad scheme
| negotiated with the congresses of their
day.
In neither event is there any POSSIBLE
lty of escaping the scandal or saving
clear the interest and the credit of the
treasury, and of severing once for all
this most destructive bond that has ex
listed ever since we made the capitaI
mistake Of pledging the credit of the
nation to the advancement of a private
enterprise. That we might suffer from
this ill no longer was the principal rea-
son which induced many citizens to
favor any reasonable adjustment with
the Pacific railroad companies. There
seems to be nothing for it now but the
continuance Of a relation which. like
all others of its kind, utterly improper
and Objectionable as they are, will be
marked by corrupt dealing and the sac
rif1ce Of public interest to the end, as
1t has been from the beginning.