Los Angeles daily herald. [microfilm reel] (Los Angeles [Calif.]) 1884-1890, 1889-10-01

istering it with careful respect to Justice
and public welfare. If ito oppressive hand
il laid too heavily upon the people,
revenge and revolt will be sure to
follow. If investors in railroad prop
critics have expended their capital in the
construction Of lines not demanded by
present trade, then they must share the
fate of all who invest in unproductive
enterprises. Relief can only come
through increased settlement, stimulat-
ing business, and developing natural
resources.
HOW TO MAKE BONDED ROADS PAY UP.
The Commissioner dwells at length
on the problem of securing to the Govern
ment the payment of the amounts due
from bonded roads. He says he has
come to the conclusion that the most
feasible plan to be adopted is to grant q
reasonable extension of time with re-
duced rate OF interest, and require the
payment of certain per cent
of the gross earnings of the roads, to be
applied in liquidsting their indebtedness
to the Government. This would relieve
the railroad companies from the en-
barrassment that might come to them
were they required to pay fixed sums at
stated periods; in time of business de-
preston when the receipts were light
their obligation to pay would be corres-
pondingly reduced. While in prosper
GUS years they could afford to make
increased payments. All these compan-
les own or operate various lines in addi-
ton to those subsidized, The Govern
ment has no claim upon the earnings of
these non-subsidized lines, and traffic
may be diverted either naturally or with
q purpose from the aided to the
non-aided lines, and various charges
in the expense accounts may be
entered up against the aided portions,
that should be chargeable to the nom
aided portions. 1t is apparent that the
subsidized roads cannot discharge their
obligations to the Government at ma
turity.
It is the Commissioners opinion that
it would be wise for Congress to pass an
act giving reasonable extension Of time,
reducing the rate Of interest to
three or four per cent, requiring
that the earnings from all Government
transportation by subsidized companies,
on all lines operated by them, whether
aided or not aided, should be applied to
the p ,yment of any interest due or to be.
come due within the fiscal year in which
such services might be rendered; pro-
hibiting the payment of any dividends
by subsidized companies unless such
companies shall have paid all the inter-
est on their bonded debt, having q lien
prior to the Government, and all ma
tursd indebtedness and interest then due,
and of tsuch a percentage OF
the gross earnings of the subsidized
lines as by careful estimates would
realize sums sufficient to pay the accru-
ing interest and raise the sinking fund.
Said companies should also be permitted
to refund their first mortgage bonds, I'M
der such provisions as would prevent
any increase in the debt, which is to
allow priority over the debt due to the
United States.
AMENDMENTS RECOMMENDED.
The Commissioner makes reconmen-
dations for amendments OF various kinds.
Among them one that all the accounts of
these railroads be rendered through his
Office, instead of going direct to the
different departments as in the past, as,
says he. it is most important there
should be some bureau of the
Government in which can be found
full information az to the accounts be-
tween the bonded railroads and the
United States. There are now millions
Of dollars of unsettled bills pigeon-holed
in various departments of the Treasury,
and it is due to the railroad
companies that all these accounts
be properly adjusted, and that such
sums as are legally their due be credited
or paid them. 1t is also to the interest
of the Government to know the exact
condition of its accounts with these com
panies.