The Hocking sentinel. [volume] (Logan, Ohio) 1871-1906, 1886-10-14
But the Government has no
lien upon the roads and property
of the other companies.

| OF the Otnef companies.
Under the present law it has no right
to consider these bonds and Stocks any
security for its debt. But it is one OF
the requirements of the bill that these
bonds and stocks shall become subject
to the lien of the Government, that the
compensation for transportation over
these branch lines shall also be, and
that all interest of either company in
any lines or companies shall become
part of the security for the prompt pay
ment of the installments Of the govern
ments claims, and if they fail to pay
any installment. the whole deb; be-
comes due and the government can
forecIose its lien Immediately. But
suppose we want ten or eleven years !;
what is to prevent the companies 1ean-
while from making away with large
portion of their so-called assets. On
every mile OF the road there are liens
ahead Of the government, and on very
large part the government has no sec
ond mortgage even; and that portion
i upon which its lien rests would not sell
separate fiom the rest for enough TO
pay off the first mortgage, Wha. is the
use, then, of talking about their tangI-
Bile assets being S429, ,696, |? There
could not be realized from them, upon
a forced sale, 1925 100000. Where are
the buyers of either Of these roads at
such a price to be found? Nowhere.
1t must be borne in mind that the
Union Pacific Company which received
bonds and lands from the government,
and the Union Pacific Railway Co. are
two entirely distinct corporations. The
former extends over only a small por..
ton of the lines now under the control
OF the latter, while the net earnings OF
the latter were last year IS. 73S, ,4O7 o.
the net earnings of the subsidized lines
the net earnings with which the gov-
ernment has anything to dO-thc net
earnings within the meaning OF the
Thurman act, the Commissioner re-
port gives as 1910, $50. .62. The same
report gives the net earnings OF CeI tral
P,cific within the meaning of that act
\ at 81, ,2l2 ,526. 40. Total of the two roads,
S.. .752. .1OT.Oi. One halt of that sum Is
S2.S76. .2O3. The annual requirements
from these two companies, made by Mr..
Outhwait's bill, rs the Journal styles 1t,
is 1854, ,3O4. which is S6os,6ol more
| than one half of their annual net earn
| ings.
The q. S. Supreme Court has decid-
ed that the government has no control
over the earnings Of any but the subsi-
died lines. We could not exact any
thing on account of the earnings OF the
| other lines. Mr.. Springer 8 plan (Cong-
Rec. 5,544) to refund the debt in 10 yr.
bonds at 3 per cent. is open 10 the OBJ
| lection that tho whole debt is put off
that length of time. This plan would
prepare the way for the discounting OF
these refuniing bonds in such man
ner that the people might finally be
cheated out of all the principal of the
debt. A provision oe the Hoar bill,
which was introduced in the Senate re-
Gently, has that fault. Mr.. Springer S
calculations to show that by his plan
the people would save $4,000, 900 are
simply tricks With figures. 1t is true
he said the advantage of his plan was
saving of S75, ,O00, 900 TO the people,
But it was a saving as he showed only
| of that amount Of the Indebtedness from
the railroad company to the people,
and not of money.
The corporations would cheerfully
accept his suggestion, for it would let
them off with payment some $iSI 1876
less each year than they will be requir-
ed to make under the bill as reported.
| He proves very conclusively, to his
own satisfaction, that the people would
receive by his plan some S3i,oOo,O0o
! less. but then they would have treasur-
ed up the debt Of the companies. and
lett in the hands of these corporation
that S34 900. 600 also. Another little
item he overlooked in his calculation
was the IO,00G, 0O0 in the sinking fund
which the companies are, by the pro-
| visions of the bill, to pay now on their
government debt, instead of on their
first mortgage bonds. His idea of say
ing money for the people in this case
was to leave it in the hands OF the com
panies.
Mr.. Crisp, replying to Mr.. Holman
and Mr.. Springer on these propositions.
says of these gentlemen "They may
not with my consent pose here rs friends
Of The Treasury, when by resorting to
such means as that, they are endeavor-
ing 10 prevent those who are honestly
the friends of the government from col
iecting what is justly its due" Posi-
bly, what have said about their obJec-
tons and plans may tend to show that
they spoke too hastily and without sut-
ficient examination OF the subject they
were SO ready to discuss.