The Wichita daily eagle., 1898-02-19
THE KANSAS PACIFIC SALE.

THE KANSAS PACIFIC SALE.
Senator Harris of Kansas has been
making himself quite conspicuous Of
late with his protests in the United
States senate against the sale Of the
Kansas Pacific road. He would have
the country believe that the admins
tration is permitting double dealing;
that the governments interests in the
road are not being conserved, and that
the sale covers a deal whereby the peo-
pie or the government are TO be swim
died out of millions. It is or ought to
be known by the reading public that
the Mckinley administration has real
ized many millions Of dollars more for
the government interests in these Pa
cific roads than the Cleveland cOmpro-
mise would have secured. The Leaven-
worth Times fully and clearly sets
forth the entire transaction. The cry
of steal comes only from the POpUlists.
That paper truly asserts that the eX-
cellent management of the Mckinley
administration has succeeded in get
ting sixty-four million dollars out Of
transaction where a few years ago
nothing was expected. For it's mortgage
on the Union Pacific main line the gov
ernment, to the astonishment and ad-
miration of everybody, received fifty
eight millions-every cent of the in
debtedness. For the Kansas Pacific it
will get over six millions, where it was
not supposed it would get dollar. For
the two lines together it obtains sixty
four million dollars.
"a little more than year ago Grover
Clevelands administration was nego-
tiating to sell the government interest
in the two lines for forty-five million
dollars, and thought they were making
a good bargain. Mckinley by shrewd
business management and firmness has
gained for the country over twenty
million dollars over and above the
Cleveland compromise.
I'VE have before pointed out how
foolish was the PopOcratic cackle that
Mckinley was forced by the protests of
the public to stand out for the full
payment of the Union Pacific lien. AS
the indianapolis Journal well says:
This is a falsehood, since the records
show that the president has made an
early demand for more than his prede-
cessor would have accepted for the
claims of the government on the roads,
and that it was the insistence of the
administration which led TO the reor-
ganization committee representing the
bondholders to pay every dollar of the
obligation to the United States. For
the main lines the administration has
received $5S 600. 600. Now there remains
the Kansas Pacific, branch line.
leading from Kansas City to Colorado.
On the first 394 miles west from Kan
sas City the United States has a sec
ond mortgage amounting TO $6.303,O00.
The 225 miles between the 394-mile post
and Denver are owned by another cor
>poration. That is, the government has
a piece Of railroad in Kansas which
ends in the air. If it should bid the
road in the government would own a
piece of line to compete with lines hav-
ing connection with Denver. It is a
valuable property, and Will be more
valuable as Kansas is developed, but
being a line without through connec-
ton and antagonized by competing
through lines. it is no property for the
soyer0rDapt ~ own py- laoca
The government has finally received
a bid which covers the principal of the
bonds guaranteed years ago. The ad-
ministration Will probably accept that
offer. If it had been made five or ten
years ago. there is not a sensible and
fair-minded man in the country who
would not have favored its acceptance.
The S6,303,O0o which has been offered
for the Kansas Pacific, added 10 the
5S000,00o and more already received
for the rest of the Pacific road makes
a total of more than $64. .000, ,0o0 received
by the government for its interest in
the Pacific railroads. which is all that
is due, except about $4,000, 600 OF interest
Cleveland administration was anxious
TO dispose Of the governments claim
for a little more than $4,000. .00O At
that time that was regarded as q favor
able offer, for the reason that the coun-
try had come 10 the conclusion that
the property was not worth the amount
the United States had invested in il.
Much better railroad properties than
the Union Pacific have gone into the
hands Of receivers, from which the
holders Of second mortgages have re-
ceived far less than the United States
has received for its rather blind ven
ture in the Union Pacific. As it is. the
government loses but about Sc, o00, 600.
and for that Sc, OO0. .0oO it has derived the
advantage Of cheaper transportation Of
mails, troops and supplies for quarter
OF century. while the first Pacific road
has made others possible and made