The record-union., 1894-10-30
a VERY TAKING SCHEME.

Al bulS uldLleT Vi lle Indebtedness OF the
Pacific Railways we have already shown,
and it is now conceded on all sides, that
the Government has its choice between
permitting the first mortgage owners to
take the properties, and thereby defeat
the repayment of the second or Govern
ment mortgage, or to discharge the first
mortgage with the funds of the United
States and take possession of the roads.
The Government will then, at this
point, be in position to desire either to
lease the roads or to sell them. In the
matter of either lease or sale, the Central
Pacific and Union Pacific Companies will
stand as good chance as any other COM
panies to be successful competitors for
the purchase or the lease.
The Central Pacific Company is related
to the California railway system closely;
the Southern Pacific Company could,
therefore, pay as much, or more, for lease
or purchase as any other possible bid
ders. But it is clear to any intelligence
that a sale for cash could never be had;
therefore terms of payment would have
to be established. 1t would be folly for
the Government to fix terms or establish
schedules of payment for either purchase
or lease in excess of the earning capacity
of the roads.
1t would follow then that terms of
practical extension of the debt would be
adjusted. By this road, therefore, a
method of the extension of the time for
discharging the debts resting on the Pa
cific railroads could be achieved, without
any legislation providing for extension
OF the time of payment.
Suppose, however, that the Govern
ment declined to sell or to lease; then it
would have to operate the roads ITSELF
Now, in California strong party has
srisen favoring discharge of the first
mortgage by the Government, then the
foreclosure of the second mortgage, and
the taking possession of the properties
by the Government and their operation
in the interest Of California.
Conceal the real underlying motive of
this desire as we may, and it still remains
that the people of California are actually
asking the people of the United States to
forego all hope of recovering any part of
the money paid on account of the credit
extended to the railroads, as we'll as the
hope of interest thereon for the future.
That is to say. these people want these
Pacific roads operated by the Govern
ment at the mere cost of maintaining
them in good order, and of operating
them.
This scheme would amount to precisely
this, the presentation to the people of
California and of the territory west of
the Rocky Mountains. by the people of
the United States. of all the money paid
out in extension of aid to the Union Pa
cific and Central Pacific Railroads. A
very short pause for thought will reveal
to the most ordinary mind precisely that
situation of the proposition.
The Stockton Mail has outlined this
policy with more or less clearness. Of
course it is not admitted, as mono of the
advocates of that theory will do, that the
real purpose is to have the subsidies
granted to the Pacific roads presented to
the people of California, But the people
of all the United States have a common
interest in the return of the money, and
California has no more right to expect
that Maine or Florida, or any Eastern
State, viii forego its interest in that claim
on behalf of the people of California than
that the people of this State would be
willing to forego their interest in any
money due the nation from tho people of
any Eastern State.
1t is a very taking scheme, as are all
propositions to get something valuable at
great bargain. 1t can be set forth in
very catchy terms, and be backed by
plausible excuses; but, divested of all it's
ornamentation, it means that the people
of the Pacific Coast shall be presented out
of hand with, approximately, $500, ,000, 600
from the United States Treasury.
On the other hand an extension of the
time for the payment OF the debt for at
least one hundred years, at not to exceed
2 per cent, is about the only proposition
that has been made having any practical
value, or promising any return to the
treasury of the United States of the
money loaned to aid in the construction
of the Pacific railroads.