Daily Los Angeles herald., 1879-04-25

nopolies and forcing the payment
OF taxes on mortgages, when
closely examined, are found TO be
empty. For instance: The clause
In Article IL, Section 20, which
relied upon more than anything
else in the new Constitution, to
protect US against the aggressions
( monopolies, amounts to nothing
when it comes to be criticised.
1t reads as follows: "And when
ever a railroad corporation shall,
for the purpose of competing with
any other common carrier, lower
Its rates Of freight from one point
to another, such reduced rates shall
not be again raised or increased
from such standard without the
consent of the government"
The peculiar wording Of this
places the whole thing in the
hands of the railroad. Suppose a
steamer comes on the line between
here and San Francisco and puts
freight and passage down the rail-
road company will call u meeting
and say, "Whereas, the farming
and mercantile interests of Los An
geles have greatly languished of
late, and believing that it can be
greatly stimulated by u reduction
Of frelghts and fares, therefore, re-
solved that we put freights and
fares down to II
They run at this rate until the
steamer leaves and they again
meet and resolve that they were
mistaken in their calculation and
again put up freight. In
what court can we prove that
they put down freight for the pur-
pose OF competing with the steam
boat? None. If the section had
been worded thus: "If a railroad,
while running in opposition with
any common carrier, puts down its
freIghts, such road shall not again
raise it's rates of freight" then we
could rely upon the section for re-
lief; but 1t is worth nothing as it
now stands. Aud thus 1 find that
nearly all the clauses in the new
Constitution which we hoped
would give us relief are wor,led 80
as to give loopholes for designing
parties to escape. Hence, I say,
those who expect much from the
new Constitution will bs disap-
pointed. AS most of the votes
which will be cast for and against
the new Constitution. will be cast
in reference to the Inn mediate effect
its adoption or rejection will have
on the business of the country,
without reference to its merits or
dement's, let US carefully consider
what the effect will be on that
business. We had hard times
when the Constitutional Conven.
tion was ordered; we had hard
times when the Convention met;
we will have hard times when the
election takes place; and, take 1t
altogether, it is the creature of
hard times. II the cause of our
hard times lay in California, we
might hope that the adoption or
rejec ion of the new Constitution
would produce some change; but 1
assure you it would not weigh q
feather either one way or the
other. So those of you who sup.
pose that our debts will all be paid
when the new Constitution is
adopted, will find that you have
gained a fruitless victory. The
man you owe, If it Is an Individual,
will probably press you q little
harder (half the mortgages in the
country belong to individually
They will be very anxious to get
their fingers on the money once
more. IT the debt is due the bank,
they will be far more lenient than
individuals, but they, too, will
soon adjust themselves to the
changed relations; and, altogether,
times will be much harder thar be-
fore.
On the other hand, those who be-
lieve that when the new Constitu.
tion is rejected confidence will be
restored, money will again be
poured out and the country again
be prosperous, as in former days,
will also be disappointed. While
l grant that its rejection might re-
store confidence in some quarters,
by allaying the fears of certain
classes, it would by no means re-
store prosperity. That is beyond
our reach at present, and nothing
that California can do will ac-
complish it. We are in the midst
of a great social and political revo.
luton, and it is not confined to our
State. This revolution must reach
a crisis befors we may hope for
prosperity. If We can reach this
crisis and rass it without bloodshed,
prosperity will follow, and my vote
will be cast with reference to this.
Then the question is, (Which
will most likely accomplish the de-
sired object, the rejection or the
adoption of the new Constitution?'
l am ofthe opinion that its rejection
will, and for this reason. Ii the
new Constitution is adopted, the
creditor class of the State will at
once begin the work of winding UP
their business In order to place
their funds where they can reach
them. This will precIpitate a state
of distress and bankruptcies un-
heard If in the history of any State.
All business will be paraly zed,
thousands of laborers will be
thrown out of work and multitudes
of families will be made homeless
in day. desperation will seize the
people and lawless mobs will be
raised to avenge their imaginary
wrongs. They will also discover
that the adoption of the Consti-
tuition was u fruitless victory, for
reasons above named.
On the other hand, I believe that
the rejection of the Constitution
Will delay the crisis for year or
more, during which time Congress
may give financial relief to the ma
ton. 1t is imperative that they do
this, and they are beginning to see
it. And 1 trust they will do it in
time to avert the great calamity