The record-union., 1897-01-23

they being poor and incapacitated, we
fear that penal enactment would not
reach them. Nevertheless since the
Penal Code compels the parent to main
tain the child in minority under threat
of punishment, it would be appropriate
to prescribe, with penalties for violation,
when and under what conditions chill
dren may be compelled to maintain their
parents.
THE FORECLOSURE PROCEEDINGS.
Our dispatches from Washington
show that the Attorney General has en-
tered into an agreement with the re-
organization committee of the Union
Pacific Railroad Company to pay forty
five million, seven hundred and fifty
four thousand dollars, which includes
the Union Pacific sinking fund Of seven
teen millions and sixty-two thousand
dollars for the claim of the Government
against the Union Pacific Railroad
Company
to be instituted by agreement with the
railroad company. Sale is to be public
SO that Government will receive benefit
of any higher bid. Four million five
hundred thousand dollars was deposited
with United States Trust Company of
New York as security for fulfllment of
terms of this agreement. The sinking
fund is to go in at par. The Govern
ment will therefore receive about twen-
ty-eight million dollars in excess of the
sinking fund for it's claim against the
Union Pacific.
The dispatch declares that in this way
the Government will receive a sum
equivalent to the principal of the sub
sidy bonds with interest at about three
and a half per cent. from their issue to
the average date of their maturity, or
about three and forty-flve-hundredth
per cent. from the date of their issue to
January l, 1897. The forty-five million,
seven hundred and fifty-four thousand
one else will bid a larger sum and the
relations between the Government and
the property will terminate on the con-
summation of the foreclosure sale.
The Government has paid out on ac-
count of the Union Pacific sixty mil
lions, five hundred and fifty-two thou
l1I1 hi ci
cent. According to the telegraphic
statement, the Government will lose
two and a half per cent. interest on the
bonds from the date of issue to maturity
and this is to be the full measure of the
Governments loss. Since the Govern
ment has paid over sixty millions of
dollars, it stands to lose about twenty
five millions on account Of interest paid
by this arrangement,
On the Both Of last November, the
public debt statement showed that after
subtracting the bond and interest ac-
count which had been paid for services
and accrued under the Thurman Fund
of the Union Pacific was sixty millions,
two hundred and seventy-seven thou
sand dollars. If this can be discharged
for twenty-eight million dollars, then
the Government is to lose thirty-two
millions Of an existing claim and per-
haps this is the true rendering of the
Sff 1fc In,
a loss by the Government of the United
States of over thirty-two million dollars
and the stock interest, which Is a part of
the capitalization of the Union Pacific,
survives.
Foreclosure proceedings then will not
have eliminated the capital and the
Union Pacific stockholders will receive a
subsidy in the amount OF thirty-two
millions by discounting the Govern
ment's claim. When this transaction
is completed the Union Pacific manage
ment will remain as now; its stockhold-
ers will still remain stockholders; its
capital stock will still be a liability
against the road which must earn
money and for which transportation
rates must be provided, and nothing
viii have been achieved except the clos
ing out Of the Governments claim at
a discount of thirty-two millions.
The dispatches relating to this subject
say that the course to be pursued with
respect to the Central Pacific Rail-
road has not yet been determined. The
question underlying all this is, who pos
sesses the authority to compromise
with the railroads by an abatement OF
thirty-two millions of dollars of the
claim OF the Government? What Is
being done appears to be done by the
Attorney General, with the consent of
the President OF the United States, and
while Congress is in session and while
bills relating to the adjustment of the
relations between the Government and
the Pacific railroads are under consid-
GRAFTON. One thing, however, is evil
dent. the railroads and the Government
are coming to an agreement evidently
on the basis of heavy discount of the
claim.
Ahn,,t ThscLs~.~