The herald., 1897-08-29
SCANDAL
LOOMS UP
Senator White on the Union
Pacific Sale
THAT FORECLOSURE SALE
THINGS THE PUBLIC SHOULD
KNOW
THAT FORECLOSURE SALE
The Examiner in Vigorous Editorial
Asserts That Scandal Is Loom
ing Up-Facts in the Case

cific railroad is set for next October.
The Examiner of August 27 has vigor-
Gus editorial upon the subject and also
strong and lucid article by Senator
White showing the folly and injustice
of allowing the reorganization committee
to get possession of the system upon the
terms proposed. Senator White says
During Mr.. Cleveland's administra-
ton the government determined to pro-
ceed to realize from its interests in the
Union Pacific railroad and to effect this
object negotiations were opened with
the so-called reorganization committee,
which eliminated in an agreement by
that board to see that not less than $50
000 900 was bid for fore closure sale. The
situation is such that if a sale is con-
summated at the present time it is' wholly
unlikely that any additional amount
will be obtained, and the result will be
the loss to the government of an i'm
mense sum of money. 1t is we'll known
that tariff discussion absorbed the great
er portion of the extra session of the
present congress
although the agreement referred to
had been made during Mr.. Cleveland's
term, it has not been executed, and 1t
is, conceded, l think, without conflict of
opinion, that the present administration
can entirely ignore the reorganzat tion
committee and that there is no obliga-
ton, legal or moral, resting upon any
public officer which requires the sale un-
der the terms mentioned This being the
condition of affairs, the senate commit
lee on Pacific railroads, without dis
senting vote, instructed Senator Harris
to report the senate resolution which
bears his name and which repudiated
the reorganization compact
when the report was presented to
the senate very clear statement regard
ing it was made by Senator Harris, and
this was followed by elaborate and con-
vincing arguments emanating from Sen
ator Morgan. AS the time was short,
those who favored the Harris resolution
deemed it best to avoid lengthy speeches.
This course was fully justified by sew
eral test votes, from which it appeared
that the friends of the resolution were
in the majority. Unfortunately, Sena tor
Thurston of Nebraska, who is, very IA
miliar with the business Of the Union Pa
cific, he having been general counsel fol
that road for mauny years prior to his
election to the senate, determined to
prevent a final vote by lengthy speech
making. This course proved successful
and no vote was taken. The admins
tration, however, was clearly advised
by the test votes of the sentiment of the
senate, and no lawyer of standing has
been found to claim that there are any
|contractual relations with the govern
ment and the reorganization committee.
In other words, the power of Mr.. Nc
Kinley to declare the deal off is un-
questioned.
A PROSPECTIVE FRAUD
II regret to say that there is nothing
to warrant the public in hoping that the
transfer of this valuable property for
half its value will be prevented. Upon
first class authority it has been de-
clared that the sale will bring an imme-
diate profit of $35.OC0,00 to it's pro-
moters. The new management expects
to float 5000, 900 900 of bonds and if they
are only half succseeful the investment
will be the most remunerative of any
disclosed in the history of railroad
frauds in the United States
while the Harris report found no op-
position in committee, still the chair
man, Mr.. Gear, obstructed its passage
when it reached the senate. 1t is not
singular that those who have favored
the funding bill also endorse the reor-
ganizati ton plan. The success Of this
project is, of course. looked upon with
favor by Mr.. Huntington. He natural
ly thinks that it will be more difficult to
sell the Central Pacific as an independ-
ent proposition than would be the case
if both roads were offered together.
"It will not do for Mr. Mckinley TO
place the blame of the Union Pacific
swindle upon his predecessor. There
were some who then thought, I believe
without reason, that the proposed price
was fair. Now every sensible man sees
that the transaction will accomplish 4
donation of public funds to a favored
few.
with this fight before him 1 cannot
understand the hesitancy of Mr.. Nc
Kinley, or rather his apparent acqui-
escence in the threatened inquty.
when we add to these disagreeable
and suspicious complications the con-
duct of Secretary Alger concerning San
Pedro we can not be blamed if we doubt
the sincerity of the president and his
cabinet. Some may say in mitigation
that it would be ungra teful to turn
down individuals who contributed SO
largely to the triumph of our executive.
No doubt the demand upon the part of
such generous contributors is hard TO
resist. Some people find it difficult to
be honest. Nevertheless, those who have
these affairs in charge should repudiate
all such impudent demands, which have
for their object the corruption of the
public service
THE ADMINISTRATION
eff this administration has denied
anything to the trusts and combines,
which made its success in the last cleo
tion possible. its action has been kert
very quiet. No record has been made of
any such meritorious behavior.
"a continuance of vigorous agitation
deprecating acquiescence by the officers
of the government in the reorganization
and funding bill frauds will be most use
full observe that Senator Morgan will
be here within a few days. l hope that
the citizens of California regardless of
party, will signify in a most emphatic
manner their approval of his action
concerning railroad matters, and trust
they will not overlook his energetic work