The herald., 1894-11-26
FORECLOSE THE MORTGAGE.

The announcement that the English
and foreign stockholders of the Central
Pacific Railroad company have dis
patched representative of their inter
ests to investigate the management of
that company, is a matter of interest to
the people OF California.
1t is evident that the coming session
OF congress will witness the initiation OF
legislation looking to the settlement OF
the matter of the Pacific railroad debts.
Upon the method adopted to effect
this settlement depends in q very great
measure the prosperity OF California for
years to come.
The plan which will be urged By the
bankrupt corporations will be the en-
actment Of funding bill, or bill pro-
viding for an extension Of time Cor the
companies in which to meet their obli-
cations. 1t is not proposed by any of
them that in case an extension Ia
granted, they will pay the debt by levy.
ing an assessment pom the stock. They
DO not really propose to pay the debt
themselves st all. Their proposition is
for the government of the United States
to turn over to their tender mercies the
people of California. in which case
hey will adhere to the method that
has 30 unduly enriched them during the
past 80 years-namely, that of "charg-
ing all that the traffic will bear" AS
consideration for the grant OF this power
to them, they agree to pay the interest
upon their debt out OF the unconscion-
able profits thus wrung from the indus
tries of this state, and also o certain
percentage of these profits into a sink
ing fund which, in the course OF another
generation. will liquidate the principal
OF the debt.
II this scheme is successful it will re-
suit in transferring the burden OF the
great debt owed by these corporations
from their own shoulders to those OF the
people of the Pacific coast, who have al
ready paid for the building of these
roads many times over. as 10 shown by
the statement of their net earnings up
to this time. 1t will fix upon US the
burden of continuing to pay interest
upon an inflated and fictitious capital,
representing at least three times the
present cash value Of the roads. And
finally it will effectually put an end to
the hope OF our securing any reasonable
competition in transcontinental freights.
There ia no doubt whatever that the
foreign purchasers OF Central Pacific
stock have been the victims of the con-
fdence operations OF Mr.. G. P. Hunt
ington and his co-conspirators. The
stock of the road 10 utterly valueless
and the manipulation by which divi.
dends have been declared upon it in
recent years, by which it has been given
value on the stock exchange, are
without doubt criminal. But this fact
does not give to foreign purchasers any
equitable claim upon the government.
and much less upon the people OF this
coaet. The remedy of these stock hold
ere, il they have remedy, is the prose.
cution and pursuit of the fraudulent
directors OF the roads. And in any ef-
fort they may make to force these gen.
tlemen to disgorge a portion OF their
booty, they will have the hearty sym-
patty OF our people, and should have
the active and material aid of the gov
eminent. The danger is that they will
prefer to adopt the spesdier and easier.
if less honorable expedient. OF joining
hands with Mr.. Huntington-reinfor
ing his congressional lobby and aiding
him In his effort to secure the passage
of funding bill by which the people of
California will he saddled with the bur-
den OF paying the debt.
in view of the election of nearly full
congressional delegation from this state
by the Republicans upon a platform
which utterly ignores this great ques-
ton, and the defeat of the candidates
pledged to oppose any kind of funding
bill. added to the well-known fact that
the Rspu blcan candidates received the
full support of the railroad. it becomes
vitality important that the Democratic
mbers and the Democratic senator
from California should leave no effort
untried to force the passage OF bill for
the foreclosure of the government lien.
and the purchase by the government OF
the roads. Through the coming short |
session an effort will almost certainly be
made by the Huntington lobby to post
pone final action until the assembling Of |