Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-01-30
may GET LOVER RAE
Competing Lines Will Be Given.
Chance to Figure With
Government.
Pacific Roads Debts Not to
Figure in Uncle Sans
Traffic.
Secretary Gage Makes Ruling Of
Importance to Western
Lines.

| Washington, d. c.. Jan. 30. From to-
| day there will be new and notable de-
parture on the part of the government
concerning transportation over the
transcontinental railroads. 1t has been.
customary for the war de'partme MT, the
navy, the treasury the interior depart
ment and other branches of the govern
Iment having goods to ship between the
Mississi ppi and the Pacific ocean TO use
only the Union Pacific and Southern
Pacific lines, paying the published rates
and having the cost credited in the debt
owed by these roads to the United
States. When this inde!bt ediness was
funded two years ago or SO it was con-
sidered no longer necessary to Observe
this rule, and the quarter master gen
seral advertised for bids for the trane
sportatfori of supplies to San Francieco..
The Santa Fe railroad, being the lowest
bidder received the contract. The
Southern Pacific people protested, and
1.-The contract was canceiedI by order of
the secretary of war on the ground that
| it was Illegal and inexpedient to use
any but th.. bond-a1ded railroads until
lsthcir indebtedness to the government
| had been cancelled,
Paul Morton, second vice-president
of the Santa Fe road. took the matter
lsup With the secretary of the treasury
land the secretary OF war, and succeed
ed in convincing them that there was
I no legal obstacle to prevent the govern-
ment from taking advantage Of COM
peting lines to obtain lower rates; and
Secretary Root addressed a letter to
1.-the secretary of the treasury sa ying:
1T seems clear to me that the practice
| OF treating transportation over the.
lbond-aided roads az II 1t cost the gov
eminent nothing ought not TO be con-
llinued: on the other hand, there Is un-
doubtedly some advantage TO the gov
eminent In keeping SO large a creditor
as the Central Pacific in a solvent con-
diition and helping ii to pay its debt to
the government Just what weight
should be given to this consid liberation
and what its practical effecte should be
in awarding contracts is a matter OF
Considerable difficulty upon which j
should be glad to have any sugge stions
which YOU may seem At TO make.
TO which Secretary Gage replied as
follows:
My attitude is substantially as stated
N Mr. vanderlip's letter to MIR. Morton.
when he says that 1 consider the debt
owed by the Central Pacific railroad to
1.-The government to be at present we'll
secured, and if the interests of the gov
comment as represented BY the war de-
APARTMENT may be served thereby. there IS
/ 10 apparent reason, so far the treasury
is concerned, for not award
ling contracts for freight etc. TO lines
| IN competition with the Central Pacific
| lin settling with the Central Pacific
Irailroad the debt owed by that railroad
Ito the government, the government took
;sotes to the amount of SIS. 100000. These
Arotcs We're secured by The deposit of
first refunding mortgage per cent
bonds to an equal face value. The pres
lent market-value quotations for these
bonds are 1912 to 10lss. The company
has paid promptly all matured notes as
they came due and has anticipated the
payment Of some of the notes before
Il tEey2cane due. In fact all the notes due
this year have already been paid, and
there are no notes that Will be due be-
4 fore Feb. l. 1902. Thus the principal OF
1.-The debt has been reduced from $58S20,
loco to about s44.000.0o0.
Under these circumstances, the gov
4 crnment having its claims secured BY
4 these notes and the notes secured by
q collateral deposits of bonds, it does moi
= seem that the government has need FOL
4 any other securities. So long as we have
+ the privilege of applying the whole Of
Z the transportation money over its bond
aided lines to the liquidation of this
s debt. everything else being equal, II
would appear that we ought to patron.
ize the Central Pacific; nrst. for the
sake OF the advantage of having these
transportation charges applied upon thu
Indebtedness and. second. to promote
the business Of a line in whose securi
ties we are interested to the extent o.
many millions; but that 1t would be t.
The advantage of the government to pay
7 higher rates to the Central Pacific thar
e competing lines will perform the sery-
ice for ii would be difficult to show.
In advertising or letting contract.
: for the transportation of troops or ma
teral the war department may be com
Iparatively Indifferent, SO far as tn,
,ltreasury or the interests of the govern
nent are concerned, to the regulations
which have heretofore been in force pro
!, |yiding for the transportation of freigh
and passengers over bond aided roads
IL by disregarding such practice tn
government interest would be served ii
the direction of securing more favora
Die terms of transportation"
Eioped for Accommo dation.
Princeton, KY, Jan. 3o.-James Rails
ton. a farm hand. planned to elope witt