Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1898-02-24
rae KANSAS PACIFIC srEAL,


THE KANSAS PACIFIC STEAL.
Senator Harris has been many times
brought into prominence since his cleo
ton, and it has been nearly always in
an attempt to prevent another steal and
scandal in the closing up Of the affairs
of the Union Pacific railroads. By his
active work, by arousing public senti-
ment and exposing the terms of the
deal with the reorganization commit
tee, the administration was forced to
impose such terms on the committee
that the government was paid the full
amount of its debt. But when it came
to settling up the Kansas Pacific, mat
ters were dallied and juggled with,
the sale was postponed and then hur-
ried up and finally consumated at a
loss to the government of about 81 ,0OO,-
600.
Again Mr.. Harris came TO the front
and showed himself the best informed
man in the Senate on the question
When it became apparent to him that
the attorney general was dallying with
the nations interest, the senator intro
duced resolution and secured the
passage of it through the Senate asking
the attorney general for certain infOr-
nation and the purposes of the admin
istratiOn. The reply was so weak that
the passage of resolution protesting
against the confirmation of the sale
was an easy matter, even such men as
Senator Baker of this State voting for
it.
The New York World compliments
Senator Harris and prints his picture
at the head of its account of the pro-
cedure. Some time ago the president
announced that the government would
qualify as a bidder and then dallled
along and allowed it 60 be sold at loss
of 81 900 600 to the government with
out bidding. The following is the
Worlds financial statement of the
facts:
Kansas Pacific Railway owes
the government for money
advanced to build the road
and pay interest on its
bonds. .................S l2,9Ol ,27S
Kansas Pacific Railway has
earned for TWENTY years
per cent interest on 49,. 30,000,000
The only mortgages ahead
of the governments
amount to .....,,.....".. 6,3O3,OOO
The governments claim,
coming next, amounts to. ;. l2,9Ol, 273
A third (cOnsOlidated) mort
gage follows the govern
ment's claim, amounting
TO-. ACKNOWLEDGEMENTS. ll,(Z4,UUU
The first mortgage bonds are selling
in the open market today at 125, the
third consolidated bonds are selling at
ia.
The government proposes to sell out
its claim for forty. eight cents on the
dollar. The Wall Street syndicate
profits by clear gift from the govern
ment of S6,624, 107 in cash. By paying
off the FIRST mortgage bonds SO, 8O3, 900
AS the government has an unques-
toned right to do, it would become the
absolute owner Of the Kansas Pacific
Railway, worth $3O,00O,OO0 But in
stead it makes a present Of the money
to the Wall Street syndicate.
Senator Harris insisted that the
government should bid in the road, pay
off the first mortgage and operate the
road itself or it could sell it at a clear
gain of S1O,OOOOOO. But the republic
Can representatives of corporation in
teres would be appalled, at any prop
OsitiOn of government operation. Be-
sides as politicians they don't want an
experiment in that line the result of
which mighttrouble them in the future.
Already the efforts of Mr.. Harris have
saved the United States millions of
dollars and Kansas is justly proud of
him.