Missouri Valley times. [volume] (Missouri Valley, Iowa) 1874-1931, 1900-02-15
Committee OF the House Ia.
vors q Settlement With
the Sioux City &
Pacific.

BUSINESS men of Sioux City, and in
TACT the Missouri valley between this
clty aud Sioux City have been quietly
at work tOl the past few months form
ulatlng y plan which will eventuate in
the United States government d,suns.
ing OF the Sioux City u Pacific
railroad, which will when sold un-
douOtedly come into the title of the
Chicago u Northwestern railroad com
pany proper.
The business men of Sioux CITY
organized into Commercial club.
have taken the inltlauve in the
matter and a strong PRESSURE has been
brought to bear OH Iowa representa-
tives In the national congress aud the
day is not far distant when the road
will be sold and the future of Missouri
Valley SO: tied Representative Thon :
IN of this ate has introduced bill To
create commission empowered to
make full and complete sediment
with the Chicago Il Northwestern rall-
road, the present operator of the sys-
TEN.
BY the new bill the commission Will
be empowered To adjust al. the CLAIMS
and indebtedness against and for the
road and the bill has already reported
back T." the house with favorable
recommendation. The bill rs intro
duced provides that the Secretary of
the Treasury. Secretary of the Interior
and the Attorney General are empower
I'd to- settle and adjust all the claims
they deem the same TO be the best
interests of The United States govern
ment. For the past twelve or fifteen
years the Chicago u Northwestern
railroad company has operated the
Sioux City y Pacific as leased property
in conjunction with the Fremont, Elk
horn & Mo Valley road. After deduct-
ing all claims the amount that now
due the Treasury of the Urited States
exceeds S4,O00,O00. and the present
profpects are that it will never be paid.
We're the road to be operated as an In
dependent line, that is independent of
the NV, or any other line, its earn
lngs would be far below the operating
expenses. The prime indebtedness Of
the road to the government grows out
of the subsidy of $4,000 per mile
granted by the government at the time
John 1. Blair, the greatest railroad
constructor that ever lived, built the
line down the Missouri Valley from
Sioux City. AT the time the subsidy
was granted the government specified
that the money was to he repaid with.
in thirty years after the completion of
the line, and the thirty years expired
over three years ago.
In recommending tho massage of
the Thomas hill, says in part:
"Under the provisions of law sppl {.
cable the government, after default in
the payment of thesubsidy bonds, NAV
take possession of the railroad and
operate 1t for its own emolument OF
may fOreclose its second mortgage.
The first named remedy involves the
propriety of government operation of
railroads. an experiment that does not
commend itself to your committee.
Tho second remedy named involves
the necessity OF advancing from the
treasury the sum of 81, 1928. 600 to pay
off the first mortgage on the road.
| This being done upon decree had
Improvement will be required to sell
the road at public auction for what
ever sum it will bring.
This remedy doed not commend it.
sa'f 4. 70 your committee, rs they are
satisfied from the history and present
condition of the road that 9 very SUB.
stsntisl loss on Its debt would be IN
evltable.