The record-union., 1893-07-14
PACIFIC RAILROADS.
Financial Difficulties of the Past and
T Future.
What the Government Gained by the
Rapid Building of the
Roads.

The New York Indicator, the only
financial paper published in New York
City, has the following:
THE reports were industriously circu-
lated the last few days that G. =. Hunt
ingtOn had been pressed for money; that
he was borrowing over SO, 900, 600; that he
was selling securities to relieve himself
and that the Government was pretty sure
to grab the Central Pacific and also the
Union Pacific for the debt which those
roads owe the Government. All of which
makes an excellent text for longer
article than We have the space to devote to
il. First of all, some of the alleged facts
should be corrected. That Mr.. Hunting
ton has borrowed $40. 100000, or even $50
100000, should not surprise any one who is
acquainted with the magnitude of his
operations or resources.
MIR. Huntington is one of the very few
men who can do that sort of thing, or
who, having done it, could carry the bur
den comfortably. If Mr.. Huntington has
found it difficult of late to borrow all the
money necessary to conduct his ventures,
that would not be surprising either.
Many a millionaire has been refused a
loan on gilt-edge collateral in the past
week or two. Still, we are glad TO say
thar Mr.. Huntington has not been in any
difficulty and at no time has been in such
position as Justify any gossip concern
ing it,.
And now we come to the point which
the recent rumors have suggested. There
has been so much ignorant abuse of the
Pacific roads and of the men who built
them, so much talk about the millionaire
autocrats of the Pacific railroads. that it
would be a startling revelation to some
people to learn that one OF those Million
aires was hard up. Yet any one who has
made himself familiar with all the facts
connected with the building Of the Pacific
roads must know that time and time
again the builders of those roads were
scarcely one remove from bankruptcy.
Only the most untiring zeal, the most
mastery planning and the wisest eXecut-
ing saved either the enterprise or the pro-
Jectors of 1t from absolute failure. Hav-
ing succeeded, of course there are minds
small enough to begrudge TO the victors
the fruits OF their success, but had there
been failure not one Of them would have
been willing to have shouldered a part of
the loss.
"W hat the builders of the Pacific roads
have done Is matter of history. At the
request OF the Government, which was
handicapped in its efforts TO subjugate
the Indians, and was threatened with the
loss OF its Pacific Coast territory, the work
OF building the road was undertaken.
y ears before the contracts to build the
roads expired they were completed at an
enormous cost, due to the high price of
material and labor-a cost which would
have been materially Iessened had the
construction work been delayed, as the
contract permitted. The Government at
once began TO reap the advantage the
new transcOntinental route afforded 1t.
1t has saved in transportation charges
more than the entire amount Of money
loaned to the Pacific roads; it saved Cali
1ornia and all the Pacific Coast; it reaped
an enormous profit from the sale of lands
which had been inaccessible until the
railroad was completed, and still greater
profit from the increased production fol-
lowing the settlement of the great West
ern country.
only few men could be found to as
sumo the enormous risk involved in
building a great railroad through the
Wilds OF the Western territory. There
were few, however, and {. z. Hunting
ton was the intrepid leader OF these few
one such man is worth to a community
or to a country more than whole race of
the snarling, green-eyed demagOgues who
live by abusing success.
I'VE are aware that an attack is pro-
posed upon the Pacific roads IN Congress
at the next session. President Cleveland
is said to be inimical to those roads.
Whether true or not, his party has traded
upon its pretended enmity TO everything
that has bank account, and TO squeeze
the Pacific roads viii be considered patri-
otto by certain brand of political states
men. Still it is to be hoped that the Ad-
ministration will rise superior to igno-
rant prejudice, and see to it that even the
Pacific roads are dealt with in a spirit of
fairness.
The Government can well afford to
fund the entire Indebtedness Of the Pa
clfic roads into l per cent. bond, paya-
ble, say, in one hundred years. The prin-
cipal of the outstanding bonds is S64, 623, =
5l2, aud there is some S52, 600, 600 of inter-
est due, making about $4,000, 900 after
deducting the sinking fund. By graded
payments the companies might repay the
entire amount with l per cent. interest
per annum in one hundred years, and
the Government would not be the loser
of penny. But any plan to be a success
must include for the roads freedom from
demagogic attacks while they are at work
paying OIL their debt"