The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-12-13
VOL. XLyI.--N0. lO4.
nODGING AN IMMENSE DEBT.
arr cryrRtL PACIFTCS SCHEME TO
rYIDE THE THURMAN Law


s.,,,ng mn m sham suit against Itself
e,x Francisco, Dec. g. Notwithstand-
~, ali the subsidies that have been given TO the
rs,on pacific and Central Pacific Railroad Com
tee and the retiring OF the first mortgage
st',ds making the United States holders OF the
s.,ord mortgage under their Legislative con-
49,, they will owe the Government upon the
-,a,rring of the mortgage the sum Of ti5i.
M ooo The Supreme Court Of the United
s..,o. has already decided that tho interest on
,h,s debt is not payable until tho principle is
A.. The scheme OF those who control and
o,,s,o,s the Central Pacific has always been to
,nut this road and make II pay for all other
i,nas NJ travel throughout the State OF Califor-
.,s both river and railway. including the build
in, of the Southern Pacific Railroad. n con-
,,uous line eastward across the continent. and
:, hnv IN the first mortgage bonds-about
teo 200 OOO-of the Central Pacific out Of the
Earnings. and after getting the absolute con-
rol OF these bonds to cripple tho company so
bo, they could not pay the interest thereon and
rake default and foreclose the Governments
eouity Of redemption. thus beating tho Govern
nent out Of its interest.
ris admitted on ali hands. inside the Rail-
road Ring and out Of II. that there is bona
sde existing debt due from the companies to
the United States. and yet they have not stirred
ahand TO provide for its payment. The rev.
,pues Of the road which ought to have been put
lptoasnking fund that would have ultimately
raid the debt have been divided among the five
srectors. Leland Stanford. Mark Hopkins.
Charley Crocker. c. j. Huntington. and Miller.
also Secretary Of the company, and with 1t they
have built mi lion dollar houses. bought expen-
sive horses corrupted legislation to prevent tho
massage Of bills to regulate freghts and fares.
corrupted all the politics OF this coast. both Fed
,ral aud State. and having purchased every
line Of travel. and being. with few trning ex-
cep,ions. the only common carriers on the
coast, having pushed themselves into the con-
troll Of tho express business known as Wells.
Fargo 4 Co.. they have become and are a com
plete monopoly in this State. and use their
money to oppress the people and resist all at
.empts 70 enforce paym ent OF their indebted
ness-the very Indebtedness through which and
which alone thay acquired their vast interests.
So UNANIMOUSLY barefaced had become the con-
duT of the corporations that Congress nj last
took serious notice OF II. and enacted what is
known rs the Thurman bill. which requires
these two corporations TO create out OF their
earnings a sinking fund which would ulu-
mately pay the Government debt II allows tho
road to pay first their running expenses and
then their interest on the first mortgage bonds.
demanding only one-fourth Of the remaining
gross receipts rs the portion to be paid TO the
United States Government to create this sinking
fund, but the amount must not be less than
sum certain. The amount that Is So Due I've & yearly
rom the Central Pacific II about S2OOO.OOO. or
about sl1O.OOO per month.
As there was good reason to expect the cor
poraiions say that this law ia unconstitutional.
hut il ntsapt tng Spnatp Dy overwhelming
vote. and had only three dissenting votes IN the
House. chief among which was thai, OF Gen.
Butler. Al the time OF the pending OF the bill
the Central Pacific Ring had spent so much
noney In the construction Of the southern Pa
enc hailroad-a concern that y losing over
5000 day-in crush ng out other common
carriers on land and water IN bribing iegisla.
lures, and in riot9us living tnM me- nl1 ,., no,
nave money ehonkn 20 Ios,Hi .he ,, Va ~ !,
congress oil awaAeheu puo''o sen''nou' y" ''ie
snblectr \. ,.,. ,,.La. 4, n ,nisdor,e.ror
me lnuIInhnb iaW uiaAIs IL ~ "a - @ pt
lor we Cen,tei iIocllc I ~ haiIo VIII a bty
npoh w Gap,.a 80 n, m -. ~, ,, n. -,
nne anh ih ii oi w. ' a. ir
any o,nsa Ihii."u,, . ~ mad 'rrnv n
nne; nc ouI,th. ~ ~ .esi ro psie, tbai ina,iona ~
Whs 70 pleNe1t ~ @ tne Nr,.. a. % IL, ~
corporation. rom sanandsslhMg M lIs money upon %
peiac svn bssn nj ,ber
to lease 10 the feeding corporation All their pri-
@ Nase linvs M 1 ~ "" y ,.,t 90 ha
roiorsdn S,asm Navisetion Line betwes1 his
city and the mouth OF the Colorado River: the
ChllluInlh otealn NaHiEh.Ion ~ i.,ue' Mhien @ in u
clule az lne river trans 10 tne TIOunltJ
Of the san joaquin and sacramento Rivers; {;
Inc Sacramento Valley Railroad. from Sacra-
mento To Shingle SPRINGS and last and greutest
H. southern pacifin IaIl road whi oh thev leased
y. ~ " ,. - = : Z o'n - 49, II, - -' $4,000
Nls luftntI pIoNlucu III the NJ tnai iuilure
10 comply with It's provisions Snall work n iOr-
fsture of their franchise and cause the road TO
revert 10 the Government
In or1ar ,o dafsat III a ohiac. ~ thia law thara
u ~ ~ ~ @ ~ " " t, ~ q. ', " 49,, - -, ~ , @ i H. =, ~. - %
Naho couIse put ohe c0uI0e VI pIo.cu ure opSn
nnaGlDln.
law de e,lared unconstitutional by the courts. To
do this they nut five shares OF stock
In the hands ~ Albert Gallutin one Of the
~. -, ,.,,.'.s "a
Enl.urth ~ tho hhIuMale HVuso VI huhinstou
hopklns 6Co.. ana caused MN 10 enter sult IN
me United States Circuit Court IN thiS city
10 restrain defendant from declaring "A diyi-
Srd H., ,,.r,r t,Iie,,,sI ,s 80 rr. n w.,
Tb,cb ,br is -. ra -, hsIpa,, III 49,,
Tue law was unconstitutional but finding that
Judge SAWYER would not serve them in this
emergency adverse Judgment was submitted 10
uthr,,, .,,,,,,s 80 "a a., ar,,aai ,au..n - ,Is
s,.'.Dul q. x un'ht anu al aPbDai MNN'h M y tllo
supreme court ShnucIson, lur, ptlu,lpdl law.
yer Ot the COMPANY. formerly Chief Justice Of
The State and who resigned that Office to take
bis presant nosition af a salarV of egO OOO ber
aunum startad Tor Waahinvfon immndinfeiv e
ai,sr 'o. o. ~ aI ,.t.. H.. - =, =,
a,'el a, H.csloh anu appehi MneIc 10 uoes hoe
eApecttO encounter any determined resistance
on the part Of the great Frauds Attorney Gen
erhl. But now appears a friend Of the Court
VINO suDmlts the lOlOWlnR alnuhNll.
.sv,srns couRr or THE uslIEp sTArEs -ARsrf GlHlhn
-. ~ III ''atni Fnere haiHodd clmIsihg John L LOVE-
alenl Of tho stale OF California. cuzen Of the United
s.ss Al an ohcer OF TINS court being duly sworn, de-
pvfts anu says
zane ne !, PeIsonay acquPin,ea Mith .ne pAi@huI nun 20