The morning call., 1892-07-26
MUST PAY THEIR DEBTS.

Senator Morgan of Alabama has intro
dnced bill into the Senate Of the United
States which, If il should become a Jaw,
will be Of immense benefit to this city and
State, ard we may add that IL will also be
Of great benefit to the whole tier Of States
extending from Omaha to San Francisco.
We allude TO bill which virtually provides
for taking possession of the Union and
Central Pacific railroads by the General
Government. There is no reason why the
managers Of the railroads referred to should
not be made to manage the vast property
which they have seized in violation OF JUS
tice, or should give it over TO agents who
will control ii honestly in the interests Of
the public. The whole history of the roads
has been one of fiaud and wr0ng-not only
toward the General Government, but par
ticularly toward the inhabitants of this
coast Money and land enough were given
in trust 10 few men to build the entire
railroad from Omaha to San Francisco.
Much Of this money WAS put in the Golfers
of few men and the roads mOrtgaged, ii
would seem from events which have since
transpired. with the intention Of defraud-
ing the Government out of its dues. In
California as we all know, the history of
The Central Pacific Railroad management
has been from first to last one of wrong
and outrage. Our citizens have been OPP
pressed in every possible way. and property
values have been largely affected. Our
politics, also. have been corrupted 10 such
an extent that we can scarcely obtain JUS
tiee in our courts. Now a proposition is
made for the United States to take control
of the roads for the benefit Of the people
10 dispossess such men as Stanford and
Huntington and put trustees in control who
it is hoped will prove more worthy OF conf
dence. The main features OF the bill in-
troduced into the United States Senate, as
published in our telegraphie reports on
Sunday. are worthy of repetition. The sum-
mary reads as follows:
WAsHrNGroS, July Ex-senator Morgan OF
Alabama has resolved that the Union and Cen
trail Pacific railroads ought to be made TO pay
their debts due 10 the United States Govern
ment. In the senate today he introduced bill
providing for boards OF directors for these
respective railroads, TO consist OF fifteen citizens
Of the United States, hye 10 be elected by the
stockholders OF each of the said corporations.
and having the qualifications now prescribed by
law, aud ten directors 10 be appointed by the
president OF the United States, 20 be selected as
faT as may be from the leading commercial, In
dusIrial, professional and agricultural classes.
without reference 10 political affiliations none OF
them TO be stoc holders or b0adhOlders IN any
railroad company, canal or water transportation
company, ana not IN any business as common
carriers.
Ihe said ten directors are 10 hold Office for two
years, subject 10 removal by the President.
These, together with tile other five, shall con-
stitute the board Of directors with the same
powers now conferred upon Tie existing
boards of directors OF these roads Each mem
ber shall receive froHe the company an annual
al of "a
expenses. while necessarily engaged In service
relating TO the road. TIE President may ap.
pOnI the same persons as directors Of each OF
the said corporations but without au increase OF
salary, and IN This case the said corporations
shall pay The salaries aud travelling expenses In
equal parts.
POWERS or THE DIRECTORS.
10 addition to the powers now conferred by
Law upon the Union Pacific and Central Pacific
railway directors, they are empowered TO con
tract with stockholders or bOndhOldeTs or the
creditors secured by mortgage of either of said
corporations for a full and final settlement OF the
debts and outstanding obligations OF either OF
sad roads, subject TO ratification by Congress,
or, in Il manner and subject TO like ratification
they may contract with any persons or corpora
lions fot Tie sale lease OF either any part OF
all their property, tights aud interests OF every
Kind, including their corporate franchise; said
cUrpOrai ions shall be liable for and bound by the
acts and conduct OF their respective boards Of
directors without recourse against the United
states on the part Of any persons who may have
cause Of complaint against either corporation
AL laws in cOntraveniion Of this are repealed.
This act is 10 expire when all the debts due or 10
fan due 10 tie nted States 4 ON either c0rpOr-
alton are fully paid uD or when the same are Sc.
cured 0 the satisfaction Of Congress.
MUST PAY THE DEBT.
Senator Morgan said 10 THE CALL CORE
spondent that Ii was shame that the Govern
meHt should permit these roads TO eyade the pay
ment Of their just debts aud he proposed 10 see
If be could not bring them TO terms. He believes
that majority OF the Senators VIII act with him.
Senator Morgan has kept pretty well posted on
California railroads and trans oriation matters
and is fully aware OF the way the Southern IA
ellie company sqneezes Tie san Francisco ship
pers, and bow this company is enabled to stiiie
all competition by fair or foul means, and he may
have something 10 say to the Senate on This sub
iect hereafter upon the information he has re-
ceiYed