The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-09-01
"PLAYING a BOLD GAME.,s

"PLAYING BOLD GAME"
We find the following communication In
the Chicago Tribune of August "a. under the
above heading:
Mr. HUNTINGToN's POSITION.
The answer is that lie cannot help himself.
Like Macbeth, he has waded In so far that 1t is
as well 10 60 ou as TO return. II the capacity OF
the pack-animal is $50 pounds, and $50 pounds
are piled on his back, he VIII sink beneath the
burden. If man attempts to force quart and
half into pint cup he will experience failure.
You cannot make a three minute horse go in
2;0S. II railroad that costs $4,000 mile is
made 10 earn per cent on bonded indebte d.
ness of $50, 600 mile, besides its operating ex-
penscs, IL must maintain rate OF fare and
freight charges so onerous that grating, CALLING
friction between IL and those for whom IL Is
common carrier cannot but exist. This is the
position Of Mr.. Huntington. That ii is unfortu-
ma does not lessen or remove the fact. He Is
struggling with the impossible task OF ~ king
his system OF railroads earn 6 per cent per an.
mum on a sum more than three times the total
cost of their construction and their operating ex-
penses besides. In addition to this he is paying
many hundreds OF thousands of dollars annually
TO the Pacific Mall and other transportation lines
10 consideration OF their keeping up freight rates
TO II figure he dictates. :.<.- -.
-. Il is a maxim of barter that no business. can
pay Interest on three times The amount Of money
invested and maintain. more Than an ephemerai
existence. A combination Of favorable eircum-
stances las enabled The Southern Pacific 10;
eyade a receiver much longer than would have
been possible under ordinary conditions. It's
opportunities for apprOprlating 10 itself, or
rather toits owners valuable properties to which.
1t had no right or title have been unprecedented,
and so far as l. am aware not. a single
- .n.taI
proved. IL has enjoyed immense subsidies of
money and land. 1t: has seized and sold land
grants which<ii never earned and TO which II has
not and never. VIII obtain n patent. Without
lawful title 1t took possession of and ihus far
has managed 10 held the entire wafer front of
the city. OF Oakland; which 1t values at some
$4,000, 600 Il Wheedled tire oyefnment into
indorsing its paper TO 1.-THE amount Of nearly
$4,000 900, on which il has not paid The inter-
est, aud Is now seeking to repudiate the prin-
cipal, By a bubble of the. law it has avoided
paying Its taxes until now 1T owes the State
nearly $4,000. 600. 1t has sold bonds which on
their face cali for nearly 5000. 0O0.0 900 which 1t
cannot redeem and did not intend 10 redeem
when 1t sold them. YET, despite these legitimate
aud illegitimate gains. despite the undlsturbed
monopoly of tie carrying business of vast
territory despite the enjoyment OF advantages
such as were never possessed by any other rail-
road system in the world. 1t is on the down
grade. and The shadow OF the receiver is already
upon It.
air. Huntington is tied to a stake. He has no
choice. Ii Is gi0undhOg or no dinner with him.
His roads must earn the Interest on their bonds
OF the deuaed and deceived creditors Will de.
mand The appointment of receiver. Mr.. Hunt
tngtOn SAYS truly that the freghts and fares
cannot be reduced without serious damage TO his
roads. Ii is true they cannon. and when Mr..
Stubs demands the last ceut the traffic viii bear
he is merely obeyiEg Mr.. HuntinGton's orders to
make the roads earn interest on three times the
: cost of construction.
THE CALL believes with the author of
the above communication, to wit: That
+: Mr.. Huntington cannot so back; that his
roads are so heavily mortgaged that he
must make money enough out OF California
TO pay tie annual interest or that the roads
will nave to go into liquidation. AS proof
OF what is said, is it not well understood
that the managers Of the Southern Pacific
Railroad Company do not intend TO pay the
Government debt? Mortgages have been
placed upon it to an enormous amount, it is
currently believed, for the express purpose
Of escaping the payment CT the Govern
ment There is no disguise practiced in
this respect. even by Mr.. Huntington.
Again. is it not equally as well understood
that tie Central Pacific property was leased
to the Southern Pacific Railroad Company
in order to cover up its earnings? To paw
the interest upon the Central Pacific Rail-
road debt requires a very large sum of
money annually and this money must be
made out of this city and State. THE CALL
believes 1t is quite safe TO say that the bri-
vate fortunes which have been made out:of
the railroads by four. or FIVE individuals
will not be used 10 pay etherthe principal
or interest of The indebtedness of those
railroads. Go step further and<it viii be
. seen that the same policy Which has been
pursued in manipulating the Indebtedness
of the Central Pacific Railroad Company
holds good with all Of The railroads which
they have touched. 1t is mortgage after
mortgage. 1t is wonderful how til csc men
have managed to mortgage the railroads.
Take the entire Indebtedness of the rail-
roads, the interest Of which Mr. Hunting
ton says we must pay, and it is a load
which the State will groen under Even the
street railroads which these men have Sc
cured are heavily mortgaged. This mort
gage business would not be so burdensome
were the roads mortgaged for what they
cost, but they have been mortgsged so as to
enrich few individuals to the amount OF
one uunuItu OF OUe UuOuTeu anu UILy MIL
lions of dollars. This drain Of money for
the Central and Southern Pacific railroads
to pay the annually accruing interest will,
if continued. grind our citizens into the
dust. Our railroad managers purchase
every railroad which is constructed that
threatens to interfere with them. The mar
rOw-gauge road, which was purchased from
MI Fair, Is a sample, and bonds 60 out to
pay for everything. How long will this
business 90 on without utter ruin to our in
dustrlal interests is the question. In order
to keep up this tax upon San Francisco and
California steamers, railroads. ETC., are sub
sidized. And Mr.. Huntington says he must
have interest on the vast debt which lie and
his associates have piled upon our railroads.
And be thinks II is an outrage if the people
complain when paying such enormous
mounts. and even some of the courts say
we must pay the demands to the last dol
lar.
NOT PLEASED.