Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-08-15

got them. but little; true, when we took them
enc single train of cars run one day in 365 would
haul from the Tehachepi to tide water every
particle, every agricultural product raised in
the San Joaquin valley. True, when we took
them that
BEAUTIFUL VALLEY WAS \ DESERT
And the land grant of small value. But am not
overestimating the value of that land grant to-
day when say it is worth in the markets of the
world an average of two dollars per acre Much OF
it has been sold at higher prices ranging from sS5
to $40, sold upon long credit, but all of the
money received, principal and interest. is
pledged for the payment OF these bonds as much
as the railroad itself. And this Is not ALL this
is not all-for the Central Pacific Railroad Com
pany, which is said TO be so powerful that it is
stronger than States, although the witnesses
disagree as TO its strength and power, has in
dorsed its guarantee upon those bonds, and
promised that, in case the Southern Pacific
shall fail, in case the 500 100000 which
the gentleman says these private indi-
yiduals have, which are security for these bonds,
shall be swept away; in case all these lands
shall be engulfed, that the property rights and
credits of the stockholders of the Southern Pa
cific Railroad are pledged to secure the pay
ment of these bonds. Then what have we that
gives value to these bonds and securities? We
have first the credit of the stockholders in the
Southern Pacific Railroad Company, and they
tell you that they are worth one hundred
millions OF dollars and g oyer 06a GOV we have
every dollar of which is in the hands
of trustees and dedicated to the payment of
this; we have the guarantee OF the Central Pa
citic Railroad Company And tnat Is what makes
the value of these bonds. And another thing.
the gentleman as | understand 1t, would have
you assess the road at the value. You do not
assess all this road; therefore 81 100000 of prop
erty lying along the line of this road, neither
part of its land grant nor part of the road which
you assess, that has been assessed this year by
the local Assessors. And another thing still for
Tou to take into consideration, and the truth OF
which the gentleman knows as well as do,
that the Southern Pacific Railroad has not its
equipment of rolling stock into 81 $4,000. That
ispledged under this mortgage: that the West
ern Development Company paid 10 the southern
Pacific Railroad Company, instead OF giving
them that equipment, 81 .50O01J in gold coin. Now,
gentlemen let Ills lay aside this guarantee, and
see how much this road is worth upon this very
theory, and bring it up 10
ITS ACTUAL CASH VALUE.
First let us take ten millions of acres of land at
two dollars an acre-S20, 100000 that makes;
81 900 600 of other property now lying along its
road making s24,O05GG0 of property; sl.5O0O1O
which that road is lacking III equipment and
rolling stock, and It makes 81, 5000 900 of value,
independent of the road, ard II leaves the road
10 stand in security for that debt, at rate OF
something like 5,0G0 per mile, and that is all.
Now / have left out of consideration
the value of this guarantee, but let me cite you
to Il single instance to show how valuable tnat
guarantee is The Atlantic and laclhc Railroad
Company have a line of road running from
Albuquerque TO the Needles. Two strong cor
porations-the Atchison, Topeka and Santa Fe
Company and the st. Louis and san francisco
Company-have guaranteed the bonds OF that
company, and although they have got road
that cost Just as much money as ours, although
they have got land grant which Is as valuable
as ours, although they have got the guarantee
of these corporations vet the standing until the
last few months of the Atchson and Topeka and
Santa Fe Company, and of the st. Louis and san
Francisco Company, was not the equivalent
in the money market OF the world OF that
of the Central Pacific Railroad Com pany, and
although those bonds go into the market with
that guarantee and with those pledges, they
could get but about 65 a against from - 10 80,
which we received with n guarantee and pledge
of the Central Pacific Railroad so that the guar
al,tee of the Central Pacific Railroad Company
is worth more to-day to secure the payment oil
those bonds three times over than Is that South
crn road.
Now, to take those points In their order, and I
shall 20 over them as briefly is possible. The
next is that il is the duty OF the state Board to
assess railroad property at Its iull cash Valne.
Notwithstanding the fact that county Assessors
have assessed other property, say, from 80 10 ~
per cent. below cost, say you have the power to
remedy that Now, gentlemen claiming not TO
know one-half as much about this matter a.
you do, say that such Is mol the iact; ana tnat
however Jealous you are-and kno" you have
been Jealous in the performance of your duties
it will be impossible to bring the property Of this
STATE TO IFS ACTUAL CASH VALUE.
And Why? I am told that in some coun-
ties of this state sheep are assessed at
their full cash value, what they would
horses may be assessed one-third less; land and
road mortgages at their full cash value; and
so on it goes. If you raise that county
to full cash value, you will still
have some property assessed too low
and some assessed too high. The life of this
Board for that purpose was taken away when
that authority, which was supposed to be con
tanned in the Constitution, was torn ont OF 1t by
a decision of the Supreme Court of this State
| know you can approximate II, but beyond that
you cannot go. Yet this gentleman who speaks
in the name OF justice tells you that notwlth,
standing that fact you must pursue the letter ol
the law and value this property at its cash
value, although all other property in the state
may be valued at one-halt OF its value
II is said that he who knows the letter OF the
law absolutely knows nothing. What were the
objects and purposes of all these revenue laws
You must read them and give them construc
ton; and this Board, under the sanction OF that
Constitution. is arbitrarily clothed with the
final power of Interpretation. 1t is depart
mcnt of this Government ranking with ans
other department of it, and you must admins
ter these laws rs laws are administered II
they were dictated and made. The OBJ
ject is to produce equality and uniformity
And what we have complained Of the Legisla
ture has so far as it has remedIed It, said thu
this property it at what they believe to b(
its full cash value. In the belief that they haC
the power complete to bring every other proper
ty to that standard which they had set up
the assessment was made before any cthel
assessment was made in the State. When the,
come to carry out that purpose they were me
by the city of San Francisco, where they haC
cited three thousand people to appear before
this Board with writs OF prohibition and ever!
writ that can be conceived Of and the BoarC
was stripped of that power. And in this yer,
roOm III the year 1882, the Chairman OF tina
Board in the presence OF the Board SAID thai
wrong had been done to this company, but the!
were poYerless to remedy it and right ther'
for that year 1882 they reduced this road some
- per cent. from the original assessment 10 RENE
DIV as far as they could, Il wrong which they hat
claimed 20 have done and which must believe
was unintentionally done. And yet the assess
ments put upon these roads were greater thai
were ever levied upon any railroad property IL
the United States, with no single exception alon;
the line VIII the aims of this Constitution bt
promoted by making a pay taxes upon his prop
erty at hundred per cent valuation, While !
pays upon but forty or fifty per cent. valuation
Is that the way, in the name al justice, III |hlcl
laws are to be Interpreted? Ihaveney know
of such interpretations TO be placed upon laws
know the difficulty, OF course in making tax
alton equal and uniform. 1t is almost impossi
bile in practice: but that system which approx
mates nearest to il, and which declares that i
its purpose above all other things, the over
shadowing purpose to make taxation equal anf
| uniform, comes nearest to perfect system.
Third-Both the mortgage and the bonds
the Southern Pacific are considered first-clas
securities. The Pacific improvement Company
within sixty days, bought from the Southern
Pacific 81 800, 900 of these bonds at par ! have
shown you, by facts which cannot be gainsaid
that these bonds rest for security upon othel
things than this railroad and it is true that the
Pacific improvement Company did, within sixty
days, buy, from the sinking fund of the Contra
Pacific Railroad Company, 100000 of the
Southern Pacific Railroad bonds; and il is true
that they paid for those bonds at par. but they
paid for them in bonds of the Southern Pacific
of New Mexico at 90 cents on the dollar, ant
those bonds are not marketable in the market!
of the world to-day, although the security, in
dependent of the land grant independent o
the guarantee of the Southern Pacific Railroad
Is better than the security on any railroad II
America, because the franchise on that road
protected as il is by constitutional guarantees
| Is the most valuable, as it is to run for fit.
years. They hold that franchise under gran
| from the Territory of New Mexico, and with
contract that that road for six years shall be eX
empt from taxation and al no time within fit.
years shall any power in that Territory, or il
| that State to come, interfere with the regula
| ton of freights and fares upon that road unles
they charge more than 10 per cent. upon the cap
tal stock of the road. That makes 1t of all thes
roads the most valuable, because 1t Is protecte,
by the Constitution: and that no State shall d.
ANYTHING to impare the obligation of that con
tract And yet those bonds could not be sold il
the markets of the world to-day, because TIT
road is an experiment. The future Is mort
gagged and pledged. When this Government
shall accomplish its destiny, when il shall hav,
extended from the frozen North to the 1sthmus
then. instead of being the picket line of the Re
public il shall mark its interior between the
North and the South. Then, will those bond.
have q market value In the markets of tn
world, and then will that railroad realize a
sale sum sufficient to pay il; and am glai
that the gentleman brought that in, because /
lIx,st raf. my