Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1897-11-30
OUR CANDIDATE IN 1900

OUR CANDIDATE IN 1900
The Union Pacific Sale.
The Union Pacific railroad was sold
under the hammer on Monday and
Tuesday last. The interest of the
government in it was auctioned away
on Monday at loss to the people of
$4,000, 600. And in spite of this we
hear on all sides that the government
lost not accent, that the government
gets out of its claim every cent of
principal and interest due. AS a.
matter of fact the government not
only lost $1s, 900, 900 by the sale but
the value of the governments claims
in theKansas Pacific of $4,000, 900,
and in the Central Pacific of nearly
$62,000,0 900, were put in jeopardy, for
for the sale of the Union Pacific,
aside from the other two roads which
were component parts of the same
system, impaired the value of
those roads. Unless worked harmon
iously with the Union Pacific and as
part of one great trans-continental
line, the earnings of the Central Pa
cific must be uncertain and therefore
the value of the road impaired. With
the Union Pacific in hostile hands,
the value of the Central Pacific could
be so impaired as to make the gov
ernment's claim worthless. This is
because the Central Pacific can get
no freight from the east that the In
ion Pacific does not deliver to it.
1t is said that this is mere buga-
boo, that the Union Pacific would
not thus antagonize the Central Pa
cific, that it could not afford to do SO
because it needs an outlet to the Pa.
cific as much as the Central Pacific
needs an outlet to the east, that if the
Union Pacific withheld freight from
the Central Pacific, the Central could
retaliate in kind. But it happens that
while the Central Pacific is absolute
~ dependent on the Union Pacific,
the Union is not dependent on the
Central. This is for the reason that
the Union Pacific which ends a few
miles west of Ogden, Utah, has sec
outlet to the Pacific slope, in the
Oregon Short Line, running off from
Granger east of Ogden. Thus the IN
ion Pacific can make through line
connections, ship freight to the Pa
cific without using the Central Pa
cific. And thus situated it would be
In position to dictate terms to the
Central Pacific On the other hand,
the Central Pacific, which runs from
Sacramento, California, to point
west of Ogden, where it connects with
the Union Pacific must pass its traffic
on east over the Union Pacific. With
out building an extension of its own
it cannot do otherwise. So it is clear
that the Central Pacific is in the
power of the Union Pacific. And the
government has permitted the Union
Pacific to pass out of it's control and
into hostile hands who may, perhaps,
with view to buying up the Central
Pacific as q wreck, proceed to use the
Union Pacific to undermine the earn
ings and value of the Central, which
owes the government 1862, 900, 900.
Thus the sale of the Union Pacific
may be long step towards the steal
of a goodly part of the governments
claim of $6200O,OOO in the Central
Pacific.
And now just one word as to the
steal of SIS, 900, 900 from the govern
ment already effected by the sale of
the Union Pacific. That road owed
the government $5S, O65, 74S. Out of
the sale the government will get that
amount. But along with the sale
goes the sinking fund accumulated
by the government, SO that all the
purchaser pays for the road is $780,
8S3,2S2. In short the government
! hands over to the purchaser cash and
securities to the amount of SIS, 1884,
466. So while the government gets
nominally $5s, 065,74s for its claim, it
gives to the purchaser the means of
paying $18, 1872, 466, SO that the govern
ment gets for its claim but $50,
282. Thus the purchaser was required
to deposit with the government, un-
der the terms of the sale. $4,000, 1000
on the day of sale. This the reorga.
!. nization committee did, how? By
paying $5.0OO,005 into the Treasury
Not at all. 1t simply left the $4,537,.
1879 in the sinking fund remain in the
Treasury and added the necessary
amount to make up the $4,000, 900
The balance of the sinking fund, $13,
$50, consists of bonds. some Unit.
ed States bonds but largely Union
Pacific subsidy bonds, guaranteed by
the government and which the gov
eminent must pay January LIST. Ant
these bonds go along with the sale
and the Committee will not be re
4uired to pay for them until they fall
due. So that all the Committee viii
have to rates and pay the govern
ment, all that they give the govern
ment for the road that owes the gov.
eminent $5s, 065, 74s, will be $685.,
1852. The American, Nov. 6.
Croker Post, g. A. R Des M oine