Show RAILROAD RUMBLES government directors ee port of the union pacific SALE OF RIO GRANDE WESTERN it ia rumored that the road has been purchased by the rock island utah nevada california road jesse spalding government director of the union pacific road has made his report to congress this week as to the condition of this road it is very lengthy but among other things he I 1 have yet to hear from any person in authority connected with the present management of the union pacific the slightest intimation that the company harbored the hope of being relieved from its obligations to the government gove rement on the contrary it seems to be the desire of president adams and his associates that such an arrangement may be made which will give the covern ment additional security for the indebtedness of the company and enable alie latter to meet its obligations in a business like way without impairing the property or jeopardizing the vast in interests involved in conducting it properly it would neither be the part of common justice nor of sound business policy to force the payment of its claims against the union pacific at maturi ity in the first place the united states government is in no special need of ready money the constantly accumulating surplus in the treasury offering a problem to our statesmen which seem to be dimce t of solution in abs tbs next place the government by the terms of senate bill 2680 recommended by mr fryes committee offers with the entire approval of the company in lieu of the statutory lien new held upon the road a mortgage which will cover the entire property of tha union pacific railway company in other the provisions of this bill compel the union pacific railway company to give the united states government for the purpose of securing an indebtedness stated at a mortgage which covers the following assets of the company subsidized roads unsubsidized terminals kansas ha and denver lands bonds of branch lines total this makes an increase of security to the united states over that held at presen this proposed adjustment of while the com banys obligations to the government do not mature antil 1897 it is now desirable that a readjustment shall be provided for by congress to the end that the union pacific management manag ament shall know precisely where they stand to sum up the union pacina railway system is at this time not only wisely and prudently dently hut profitably managed the branches aud extensions extent ions which have been constructed and the improvements made during the past five years have been of direct and incalculable benefit to hundreds of thousands of people in the west and pacific northwest as well as to the business of the nation in general As is certainly far moi valuable today to day than i was in issott cannot pay the or so which it owes to the government howe verat this timeout time but it is able to offer security equal to more than the government holds now for its indebtedness it asks an extension of time and a lower rate of interest both of which tha government can afford to grant rather than see the property imperiled peri led for to imperil it would threaten the financial ruin of thousands of people who have invested their money in the enterprise and more than that their probable impoverishment of the hundreds of thousands who have settled upon its lines during recent years and whose interests are so closely woven with the prosperity of the road that they cannot be separated the question resolves itself down to this what is best not so much far the aaion pai cefic railway company as a corporation but for the country at large it seems to me that there can ba but one answer to this let congress deal as fairly with the union pacific as a business man would with a creditor who was willing and able to pay his debts if he were only permitted to attend to his business without interference and embarrassment barras SPAULDING government director chicago april rumored sale of rio grande western rumor has it that what is probably the largest railway yet made in this part of the territory was a day or two ago and that the rio grande western has passed into the hands of the rock island the rumor comes from the best authority and is backed by many proofs among which it may be stated that orders recently received by the rio grande officials are of a nature that seems to be a conclusive proof that in future they will be subject to orders issued by the rock island directorate the removal of the head offices of the bio grande western from denver to salt lake city is another indication a more important change was anticipated it has long been known that the aock claland has controlled the colorado mid land which has been broadening its guage westward of grand junction while the rio grande has been broadening its guage to the same point from the west the latter is apparently timing its improvements by the work being done at the eastern end of tho line which when completed will give a byroad gauge to and shorten the distance all eastern poin taIt has long been known that the rock island has been seeking an entrance into salt lake as a point from whence it could reach the pacific coast and so become a rival to the union and central pacific systems if it could succeed in reaching this city it would have the great advantage of owning a direct and short line from chicago to the coast salt lake and los angeles to san francisco makine the grandest combination of business cities in the country it was to this end the management has been working and now they have accomplished it the reputation of the rock island as an aggressive road and ono that will do its utmost to advance the interests of the cowna along its line is one that will be duly appreciated precia ted by the merchants of this city which so long has needed the fostering guardianship of some such aggressive friend in a short tim an official announcement of the transfer will be made and the advent of the rock island will mean the best possible rates for salt lake consistent with existing laws and also the opening up of the territory to the west it will also givs a nev line to the coast and put into competition a road that is both able and willing to compete for the traffic that has been neglected BO long and hampered so badly tribune utah nevada california r an engineer of the utah nevada california road assured a representative af pf the today to day that the road awas going through to california sure and that work would commence this year ve have one of the largest railroad owners in the country at our back said the engineer and mr moore the chief engineer is now at los angeles he is a gentleman who las built eleven different roads throughout the country and be would not be working at this un less it was a go and don t you forget it if I 1 could tell you all I 1 know abour the road you might have more confidence but my mouth is sealed |