Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1888-02-27
THE RAILROAD INQUIRY.

In the examination conducted before the
House Committee on Pacific Railroads last
week, Messrs. Anderson and Littler, of the
Railway Commission Of Inquiry testified
among others. Their testimony was rather
expression of opinion which has already
been reflected in the majority report of
the Commission. 1t seems to be the dis
position, SO far as we can judge by the re-
ports telegraphed, to entirely ignore the
equities of the Central Pacific Railroad
Company, and which have been so clearly
presented lately in the argument submitted
by Messrs. Conkling and Shipman. In
stead, great deal of vituperation is in
dulged In that cannot have other effect
than TO delay the settlement SO essential to
all the Interests involved. Certainly the
denunciation of the railway builders is
neither dignifed nor justified by the facts.
1t Is very surprising that one of the
witnesses should speak of the right estab-
lished as finality by the decision of the
Supreme Court that the debt of the road
is not yet due as unfortunate" 1t re-
CURES greater penetration than most men
possess to see how there can be any mis-
fortune to the Government in the contract
between it and the road being interpreted
In harmony with its spirit, and the clear
intent of the parties thereto. We fail to
see what is to be gained by striving after
means to infiict injury upon an incorpor-
ated body which-and no one has vet
shown or even made an averment to the
contrary-has kept every obligation
towards the Government, and has dis
charged every duty imposed upon it. The
question of settlement should not be
befogged by dragging matters to the front
that are rather the echoes of past demo-
gogIc political campaigns, in which the
railroad corporation was made the target
for abuse, in order to influence the public
mind against it in the interest of politi-
clans.
The Government must be paid, and will
be; even the majority of the Commission
are frank enough to admit that if the mat
ter is handled with ordinary business wis
dom, the Federal Treasury will receive
every cent due to it. As one of the wit
nesses for the Government remarked, there
is no suffering by the United States for
lack of funds; the effort is made rather to
keep money out of the Treasury than to
put 1t into it. The very large sum placed
in the sinking fund, originally created by
the corporation for the express pur-
pose of paying the debt at maturity,
but subsequently taken in charge
by the Government, would alone, as Mr..
Huntington has shown, have paid half the
debt when it falls due, had it been invested
rs intended. The sums due to the COM
pany from the Government for services
rendered are persistently kept out of view,
and no account appears to be made of them
There appears, also, to be no willingness to
even consider the undeniable fact that such
impairment as the security of the Govern
ment has suffered, has been and is due to
the diversion of traffic from it, by extend
ing aid to competing lines, even more gen.
erous In character than that given to the
Central Pacific corporation.
Against everything that can be or is said
antagonistic TO the road, it remains unde-
niable that the Government has profited
intellectually by its construction, and that
the measure of this benefit simply exceeds
possible calculation. The opening up of
the country, the augmented values of Gov
eminent lands, the binding of the Union
together at time when its severance was
imminent; these are matters which cannot
be put aside, nor will they be in the final
public judgment, when that just calm pos
sesses the Government which should pre-
vail. More than this, as has been repeat
eddy shown, the cost of the construction
vastly exceeded the estimates, owing
to obstacles to be overcome which
human prescience could not foresee
or guard against. But it is not
the intention now to review these
and other equities which have been SO for
chilly and repeatedly presented, and to
which, so far as the public is able to dis
cover, no replies have been made. nor do
we believe that there can be by the fair
and impartial mind.
If, when the debt Of the corporation to
the Government falls due, it is unable to
meet it as was originally expected, and at
the same time keep faith with the prior
lien holders, it will become clearer than
now, perhaps, that the fault is chargeable
TO the Government itself The capacity
TO fulfill the obligation as stated was Grip
Piled by the Federal Government, and that
fact being clearly shown in the debate
concerning extension of time for payment,
1T is certainly not possible for Congress to
ignore consideration of that truth, and to
make such allowance on account of it as
justice and equity demand.
1t is to be regretted that the disposition
to avoid the equitable claims of the cor
poration should exist, as it evidently does.
for it is desirable that settlement between
the Government and the railroad shall be
arrived at speedily, and that it shall be
such an adjustment as will secure to the
Government every dollar its due without
disallowing the equities of or destroying
the corporation, which will go down in
history, despite all the shortsightedness of
the present, as one of the mightiest of all
influences for the advancement of the
nation and the development of the coun-
try. The benefits already secured by the
United States by reason of the eonstruc-
ton of the road thousand fold outweigh
all financial considerations Of the debt in
volved. In the light of the magnitude of
these benefits and their immeasurable