Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-07-02

and salaries relating to the main line
of the Central Pacific. Such pro-
ceeding could not do otherwise than
seriously affect the credit of the corpora
ton which has been large borrower in
the money markets of the world. And
now comes the Chronicle to declare that the
pretended financial stress is sham; that
the company is possessed of unlimited re-
sources; it sends interviewers to the cash
iers of banks with inquiries relating to the
credit of the Central Pacific and its ability
to borrow; it receives the only reply that a
cashier of a bank ever makes, under such
circumstances, to wit: that the credit of the
party concerning whom inquiry is made is
perfectly good; it publishes the statement
broadcast that the most substantial bank
ing firms of the city have declared them
selves willing to extend unlimited accom-
mediation to the railroad company. and, as
if extremely solicitous that the credit of
the company shall not suffer in this emer-
gency, it accounts for the apparent lack of
funds and credit by declaring the motive
to be the defeat of any judgment which
may be rendered against the company in
the Cotton suit
No statement emanating from a friendly,
or apparently friendly, source could per-
form the service for the company i'll the
present emergency which this apparently
adverse statement will do and perform. To
all appearances, what the Pacific coast sys-
tenn needs Just now is strengthening of
its credit The State bonds loaned to the
company twenty years ago fell due on the
LIST of July. The bonds were loan of
credit by the State, but they call for an
eventual reimbursement. The semi-annual
interest on the bonded Indebtedness of all
the roads on the coast fell due on the same
day. 1t is well known that the inStallment
of the Morgan purchase to complete the tide
water connection of the Southern Pacific
falls due in the month of July. These de
mands are unusual, except as relates to the
semi-annual interest on the bonded debt
of the roads Under ordinary financial
conditions they could all be met without
producing the slightest check Of financial
momentum. But these unusual demands
have fallen upon conditions abnormally
unfavorable to the extension of financial
accommodation necessary to meet them.
The corporations feel the strain, and have
reason to apprehend some impairment of
credit And now comes the Chronicle 10
declare that such impairment is unreal ;
that the credit of the corporation was never
better; that its assets are unlimited; that
its resources are boundleSs that its income
is enormous, and that its exhibition of
financial stress is sham and a fraud.
Alta time when a reinforcement of its
credit is most seriously demanded, no
greater service than this could be rendered
by the most friendly or abject railroad
organs, and hence it becomes apparent that
if the statements of the Chronicle proceeded
from motives of hostility they are exceed
ingly stupid, while if they are friendly in
intention, and the friendship is covered up
by a pretense of hostility, they are pro-
foundly dishonest In short if the Cdron-
icic intends to iniure the railroads, it is not
possessed of the necessary ability or skill to
accomplish its objects. But if it intends to
serve them, its present course is entirely
consistent with the theory that it is an ably
conducted journal