The herald., 1897-10-22
BARLOW STANDS FIRM
HIS RESPONSE TO THE NEW YORK
WORLDS QUERY
Government Ownership the Only Solu-
tion of the Railroad Problem.
Senator Whites Attitude
Congressman Barlow yesterday re-

Congressman Barlow yesterday re-
ceived the following telegram:
NEW YORK, Oct 21st
Hon. c. A Barlow: The agreement
with bankers pool for sale of Pacific
railroads made by Cleveland's admn.s-
tration will cause loss to government of
fifty millions. Mckinley he,sitates from
committing the sacrifice. If he can Sc
cure full payment in new security un-
questionably worth par in all markets
and smashes Wall street reorganiza ton
scheme, would you, in congress, support
his action?
THE NEW YORK WORLD.
Barlow replied as follows:
LOS ANGELES, Oct. 21st.
The New York World: I stand on the
Omaha and st. Louis platform and be-
lieve that government ownership is the
only solution of the transportation prob
lem. The Thurman act should be en-
forced and the road seized by the govern
ment as provided by law.
C. A. BARLOW.
Senator Whites position on the fore-
closure sale and reorganization plan is
well known, but it is of interest to re-
produce some positive sentiments to
which he gave utterance few weeks
ago:
1T should be remembered that while
this plan was suggested by the last ad
ministration, nevertheless the plan thus
outlined is not binding, and can be
abandoned by the government at any
moment and herce the responsibility is
now directly and exclusively upon Mr..
Mckinley and his advisers. My judg-
ment is antagonistic to the scheme. The
proposition involves, in my judgment,
not only the loss of $25, $1,000 to the
United States but the. practical donation
of that sum to the syndicate headed by
Mr.. Fitzgerald of New York and his as
eociates. 1t is proposed that the reor-
ganizers shall pay sum sufficient TO
discharge the prior liens, and shall pay
the government within s25, 900, 900 of the
sum due. My opposition is based on my
belief that the Union Pacific can pay
every dollar of the Indebtedness, and
that the government should receive ev-
cry cent coming to it.
''It is we'll understood that the prop
erty, in the event of the purchase going
through, will be capitalized at $100 000,
900, realizing an enormous fortune s net
and immediate profit to the promoters.
l know that the railroad people are con-
stantly asserting that the syndicate has
offered more than the road is worth.
This is nonsense. The men who are en-
gagged in the enterprise are among the
ablest financiers and railroad managers
in the world. They know what they are
doing. They are not in the habit of
making presents to any individual, much
less the government. They are making
a splendid bargain for themselves
"It seems that Attorney General Nc
Kenna insists upon a raise of $5000,0O0.
This will reduce the governments loss
to 10000, 900 and will to that extent be
beneficial. But I cannot see the pro-
priety of sacrificing the larger sum.
''In the last days of the last congress
every person supposed to be friendly to
railroad interests was diligently at work
to prevent the consideration of the Har-
ris resolution. The most extraordinary
efforts were made to avoid vote in the
senate. 1t was known that a majority
of that body favored the resolution, bu:
railroad efforts defeated an expression
of opinion. People connected with the
railroad who were supposed to have in
fiueuce with those prominent in opposi-
tiCn to this deal were called to use their
influence I am afraid the combination
will < fcceed, and if SO, responsibility will
be directly upon the shoulders of the
present national administrat ton"