Chicago eagle. [volume] (Chicago, Ill.) 1889-19??, 1897-10-02
THE EMO oF 4 BAD DEAL.

N washington ulsputcn states ON
the higtcss authority" whatever thaa
may R. that the administration hsS
finally decided ~ accept the prop~si-
ton Of the Union Pacific rcorgnAtza-
ton committee for the settlement Of
the commny's debit to the United
states.
In accordance with that proposition
the Government mortgage will he fore
closed. the road will bc sold AMI the
company he rcorganized. That Is To
say. while ahc United States mort .gage
will be fore.losed. the Government will
not hold and operate the property. but
will sell II, put the money In the treas.
ury and leave the road In the hands of
q corporation rs heretofore.
The decision reached will. Of course.
be extremely unsatisfactory to oil who
have wished to see the Government try
the experiment Of operating an import
ant railway. These persons include
very many who are not prepared to In.
dorse the demand for Government
ownership ana control Of all railroads.
telegraph lines and other public con-
veniences. 1t includes q great many
people who are not state socialists"
or to any very great extent paternal.
ists. hut who believe. or are inclined to
believe. that Government ownership
and operation Of some Of the great
highways Of commences rs may
| le able to compete on equal terms with
| other rOads-wOuld he the means Of
protecting the public against extOrtiOn
| discrimination and other evils.
These people. rs well as thousands
who are less conservative. will I've sore
~ disappointed to learn that the Gov
eminent has let slip an excellent OBJ
| portunity to put their theories to the
| test. Most conservative men. however
will not he sorry that the admInlstra-
/ ton has declined to enter upon n new
and doubtful experiment. especially
under conditions brought about In part
at least by designing men. which would
undoubtedly place the Government ut
great disadvantage and probably In.
| sure failure.
Surely the terms which have been
accepted. and which are. perhaps. as
good as could have been made under
existing circumstances. do not AFFORD
much support for the theories Of those
who would have our Uncle Sam 90 into
the transportation business or any
other business on a grand scale. The
management Of the Pncifc railroads
matter on the part Of the Government
has been unbusinesslike from the start,
and It ends. by the admission Of Senn.
| tor Gear. an ardent advocate OF the
plan Of settlement said to have been
decided upon. in loss Of about g..
OOO.OOO.
At the outset Congress provided that
the Government should be secured by
n first mortgage on the property for the
hid which Il extended In the form Of
bonds. But besides this ald II provide
for c.ean gift Of land enough to make
n gOOi-sixed state. Before ground was
broken Congress gave up the first mort
gage ana accepted junior lien. In con.
sequence OF which the Government
now loses "a round 25.OOO.OOO.
This does not 20 to strengthen the
| opinion that Government II the proper
| agency for the handling Of great enter
pr!ses. 1t does not incline cautious
men to look with favor upon any pro.
posal to donate public money or credit
In aid OF u Nicaragua canal or any
other enterprise, no matter how fully
| the promoters Offer to secure the nov.
| eminent. The Government was amply
| secured by the first Pacific Railroad
law. Later the security was surren-
| dered-a fact which IL now brought
home to us with strong emphasis.
The Government II no more capable
| OF doing u safe business than II was
thirty years ago. II let go Of good Sc
| curly ana took u back seat then; the
chances are ten to one that II would do
substantially the same thing II It should
undertake to back the Nicaragua canal
or any other enterprise now. II can.
not even hold on to good security once
in It's hands much less can II he trusted
to operate successfully 1000 miles Of
railroad In competition with able and
ready business men who can drive and
clinch a dozen nails before u clumsy
body Of Government Ofiiciallsm can spit
on It's hands,-ChrOnicle.