The morning call., 1894-07-14
FOR THE PEOPLE.
An Address Issued to
Congress.
ON THE REFUNDING BILL.
1t Would Cancel the Original
Contract
AND RELEASE STOCKHOLDERS.
Suit Could Not Then Be Brought
Against Them for Recovery
of Assets.
ON THE REFUNDING BILL.
AND RELEASE STOCKHOLDERS.

WASHINGTON, July 13.-MeSSrs. Sum-
ner, Bassett and Perkins, agents of the
people of California, have issued an ad-
dress to Congress declaring Understanding
the Central Pacific debt is needless and
useless. They point out that any funding
scheme cancels the original contract be-
tween the United States and the Central
Pacific Company. ana thereby releases the
stockholders from all liability.
Following is portion Of the address:
at has been suggested as a compromise
measure that a refundng bill be passed
which shall contain a provision empower
ing the company TO sue stockh oiders
This is device for defeating the ends of
Justice and for defrauding the people.
when the debt was contracted five
individuals who held stock were the COM
pany, and they or their representatives
are the only parties against whom suit
could be brought. They would be re-
quired to bring an action against them
selves for recovery of the corporation
assets which they have converted into
their own private fortunes.
IF such a proceeding were practicable
or possible it would be discovered at the
the statute of limitations. The Govern
ment being the only party against whom
the statute of limitations does not run. is
therefore the only party who can proceed
against the stockholders.
IAN act of Congress refunding the Cen
trail Pacific's debt would effectually bar all
proceedings on the part of the Govern
meat. 1t is not the policy nor the purpose
Of this Government to perpetually invest
a private corporation with the power of
monopoly. Yet the funding of the Central
Pacific Railroad Company's debt to the
United States, at a rate of interest not ex-
ceeding or per cent per anDum, would
invest the Southern Pacific Company Of
Kentucky with a monopoly OF the railroad
business in California, and from Ogden
westward. for a long term of years.
Suppose an attempt was made to build
a competing road. Capitalists would not
invest money worth the market rate of
interest in such railroad. that must COM
pete against road built and operated with
Government funds the date for repayment
of which was far in the future and the in
terest oil which was less than One-half
the current market rate.
at would seem that a surer and more
practical method than refunding for the
Government to adopt would be procedure
against the private property of the five
original stock holders, Stanford, Hopkins,
Huntington and the Croker brothers, all
Of whom are liable under the law for the
debts of the corporation.
1T is conceded by the best, if not the
highest, legal authority that because of
their failure TO meet the per cent payments
stipulated by act of Congress. both the
Central and Union Pacific railroads may
at once be proceeded against by the Gov
ernment.
This point established. there is nothing
10 prevent the Governments foreclosure
OF its mortgages on these roads, which, in
the hands OF board of managers. the road
between Omaha and San Francisco would
almost at once become the great competing
line across the continent"
These circulars have been freely distrib-
uted at the CAPITOL