The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-02-07
ON A NEW PLAN.
Huntington's Scheme Of
Paying Debts.
FUNDS OLD OBLIGATIONS.
And Asks Uncle Sam to Be His
Security.
USING THE GOVERNMENT CREDIT.
In Effect the Nation Will Pay Itself
by Lifting Money From
its Own Pocket.

mIHons ne mas secured already, but he is
trying % get more. Yesterday at one end
of the Capitol he urged the River and
Ha Tbor Committee to appropriate 100000,
or more if it would, toward deepening his
harbor at s anita Monica, and to-day he ap
peared before the Senate Committee on
Pacific Railroads and argued in favor of
scheme which would enable the Central
Pacific to borrow money on Government
credit and with the borrowed money pay
= Uncle Sam his S70000,00o.
Wherever he goes, the railroad magnate
is accompanied Ivy his Washington Man
Friday" John Boyd. Indeed, the latter's
figure is a familiar sight about the corri-
dors of the Capitol. as be hovers about the
committee rooms and buttOnholes Con-
gressmen in furtnerance of his employers
railroad and Pacific steamship business.
= Alr. Huntington's face and figure are not
unfamiliar about the Capitol, either. and
to-day he was very conspicuous as be
moved from one Senator and member of
Congress to another. Mr.. Huntington
% must have arisen at sun UP" this morn
ing, for he was at the house of Senator
Cushman +. Davis before that statesman
was out Of bed.
who wants to see me at this hour?''
growled the Minnesota Senator.
"Collis p Huntington" said the negro
servant
.."Oh, all right. tell him I'll be right
down." said Davis.
So Cushman and Coils met The former
was in his nightdreSs. This is no fancy
sketch. 1t Is the plain truth, and TO give
point 10 the story it is only necessary b.
add that Senator Davis is a member Of the
Committee On Pacific Railroads. After
his interview with Senator Davis Mr.
Huntington drove to the Capitol and ap-
peared before the Pacific Railroads Com
mittee.
THE CALL correspondent called on
Huntington At the Hotel Normandie to
Z ight and asked him TO dictate an inter-
view that would succinctly set forth his
proposition as made 10 the committee to-
. day. The interview or statement concern
ing his proposition and his views thereon
was prepared iu typewriting by Mr.. Miles,
. his secretary, and then submitted to Mr..
Huntington for his acknowledgment of
its accuracy. After reading the copy over
and adding several lines to it he gave it out
for publication in The CALL. 1t will be
read with unusual interest by California
people, as it will show accurately just
what kind of propositions the Central Pa
ciflc people are making to Congress. The
.: statement IS as follows:
=. "a proposition has been submitted to
the Committee on Pacific Railroads look
ing to a settlement of the Indebtedness of
the Central Pacific Railroad Company to
: the Government, bonds on which begin t.
= mature in 1895. A number of bills have
p, been passed concerning the Pacific rail
roads. which have, however been found
insufficient to solve the problem of the
o., rapidly increasing debt. The Thurman
bill was a notable failure, although it
seemed to many at the time of its passage
10 meet the prevailing conditions.
: I'm the early days of the roads history
: the annual transportation of Government
. troops and supplies was a very great item
inthe earnings of the road, and this was
: calculated upon TO reduce by certain and
:: practically fixed sum the yearly payments
to: the Government that were required in
order to eXtinguish the debt. Blu. the con-
dition of the country changed, and there
was practical cessation of Indian wars.
This was brought about aim ost entirely By
the facilities created by the construction
of these Toads-by the policing, as it were
of the thinly Inhabited sections where
Safety to life and property had never be-
fore been assured.
OF only was the item OF Government
- transportation reduced to a minimum, so
as to be q c longer an essential factor in the
- roads earnings, but other transcontine nta
lines were built and the Government aided
them with even larger grants of land than
the pioneer roads had received. The rates
necessitated by competition grew lower
and lower, while the tonnage and general
business failed to increase to any such ex-
tent as to counte terbalance the loss. The
: country was thiuly and remained sparsely
settled and uuproductive, and the debt
grew steadily larger until it is to-day $70.-
000.000. is on the eve of maturity, and Con-
gress is confronted with serious question
which will not brook delay.
''The present proposition is the most
comprehensive one that has ever been for
mulated on this question, and is iDdorsed
largely by Government officials as being
=: one calculated TO cover the conditions eX-
listing or likely to occur during the life of
the proposed arrangement, and while do
Ing justice 10 the road will, it is claimed,
.: bring to the Government at a most oppor-
tune moment the money it advanced to aid
. In the construction of the road, with fair
interest upon the outlay. Briefly, the pro-
posed bill enacts that the entire indebted
ness of the Central Pacific shall be en-
: braced under single mortgage This in
~-cludes, of course, not only the $40, 600, 900
due the Government, and which is a sec
Gndary lien only, but also the first mort
gage on the main line and branches. The
bonds issued under this general mortgage
would thus become first lien on the entire
:: property Of the Central Pacific, real, per-
:: sonal and mixed, including all lands in its
grant and acquired sinking funds. Be-
sides this, it would be first lien upon the
terminal property at Oakland and San
j.: Francisco. These bonds would run for 125
: years at 21a per cent interest. said interest
20 be paid currently in January and July.