The record-union., 1894-09-26
Weather Forecasr.
A RATIFIED ORGAN.

ton the reader would have right to ex-
pect some definition of exactly what
''Our Railroad Fight" is; what is meant
by sour Railroad Fight; what is in
volyed in the issue called railroad fight,
and what are the forces arrayed on each
side of this issue. The reader will look
IN vain for definition.
The Bulletin quotes Senator Mander-
son OF Nebraska in a statement that the
next Congress will be Republican. It
disagrees with Senator Manderson in his
opinion that Republican Congressman
will be elected from the South, and says
that the bulk of the work of electing Re-
publican Congressman must be done in
the North. 1t then brings the issue
closely home and says that there are five
or six Congressman waiting to be won
from the Democrats in California; that is
to say, we have five Democratic Congress-
men, and the Republicans have an op-
portunity to replace them with members
of their own party.
the new tariff hits California very hard in
many ways and gives excellent Republi-
can fighting grounds. From this point
we quote its exact words:
Yet the battle cannot be won this wear on
mat issue alone. It is overshadowed by the
Pacific Railroad refunding question What
ever the republican platform lacks on that
Polnb must De mace up by the Republican
Congressional candidates, and it must be
cone early in the campaign, and with IN
nlstakable earnestnesS and good faith The
party or the Congressman that gives the best
assurance of saving California from being
robbed for the next half century to pay rail-
road debts and line the pockets OF the rail-
road managers will win his hight. There is
anywhere from $3.50, 100000 to S3oooOo,-
Uoo AZ stake for the people Of California IN
the next Congress.
In this the Bulletin confesses lack in
the Republican platform, which 1t de-
clares must be made up by the professions
OF candidates. Its statement that there is
an issue confronting the people of this
State, and that the issue is resistance to
the robbery of from $3.50, 900, 600 to $780,
100000 to pay railroad debts is wholly in
comprehensive.
The aided lines of railroad from Sacra-
mento, say, to Omaha, will owe to the
Government at the maturity of their debt
about Sl30,000,000. As security for the
payment OF this debt, the Government
holds a second lien on the line of the
road. first lien was created by Gov
ernment permission which amounts ouIy
to S6O,OO0,00O. This first lien will take
the property. If anything the Bulletin
has said is comprehensive, it is that to
extend the payment of the second lien to
future time, or over a series of wears.
VIII be IN effect robbery Of the people
OF this coast. But on the other hand. un-
less the Government extends the time.
the first mortgage will take the road and
the Government will be the only loser.
The Government has no lien on any
other property than the road. The statu-
tory lien created by the Acts of 1862 and
1864 is explicit as to the remedy for de-
fault OF the payment of the bonds issued
IN aid of the construction of the line The
language of the statute is as follows:
And on the refusal or failure of said COM
panieS to redeem said bonds and any mart of
them when required TO do so by the Secretary
ol the treasury, in accordance with the pro-
Visions OF this Act, the said road with all
rights, functions, lmmunitieS and appurten-
ances thereunto belonging, and also all lands
sfanlea 10 SAID companies by the United
States which at the time OF said default shall
remain IN the ownership of said companies
may be taken possession OF by the Secretary
OF the Treasury for the use and benefit OF the
United States.
Thus the Government fixed a specific
Limitation upon its right and described
fully the remedy the exercise of which
would mature upon the failure of the
company to redeem the bonds. The road,
with its rights, functions, immunities
and appurtenances and the lands which
the company might not have sold. are to
be taken possession of by the Secretary
of the Treasury for the use and benefit of
the United States.
In the Act OF 1862 amendatory of the
first Act, it was provided as follows:
And the lien of the United States bonds
shall be subordinate to that of the bonds of
either OF said companies hereby authorized
10 be issued on their respective roads, prop
erty and equipments.
Thus the Government had first mort
gage on the railroad and provided that in
the event the money loaned for the con-
struction of its lines was not returned
when the bonds became due the Govern
ment might take possession of the road.
with its appurtenances and equipments,
for the benefit of the people of the United
States, but subsequently it enacted that
the roads might issue first mortgage on
the said line and that the lien of the
United States should be subordinate to
that created by the first mortgage.
In the event therefore the bonds are not
paid at maturity and the Government re-
fuses to extend the time for their pay
ment, it will find first mortgage of S6O,-
100000 standing between it and the own
ership of the line. When it gave per-
mission TO create this first mortgage and
consented that its own claim should sus-
tain second mortgage relation or be
lien inferior to that of the holder of the
first mortgage bonds, it left to itself only
the value of the equity of redemption out
of which to recover the sums of money
loaned to the Pacific Railroad Companies.
All this is or should be perfectly clear.
Therefore the Government of the United
States will lose the entire property and
the right to recover anything unless it
discharges the first mortgage of $50, ,000, 900.
j