The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1894-10-05
THE RAILROAD MONARCHY.
It Proposes to Still Further Bleed
the Commonwealth.

It Proposes to Still Further Bleed
the Commonwealth.
Under the heading, "The Outrage
OF Refunding," the San Francisco
Call editorially says:
The outrage proposed by the
Pacific railroad refundinR bills is
colossal. Few people have yet taken
pains to inform themselves so "a to
fully comprehend it. There il $780,
100000 in first mortgage bonds to
be provided for. There is Sl5OOOO,.
600 in second-mortgage bonds and
accrued interest, which, added to
the frat amount, reaches Sl9O,O0O,-
COO This is to be funded for fifty
years at 3 percent per annum. The
simple interest will amount to S.
100000 annually, or for the fifty
years S2S5,OOO,0OO! Grand total,
principal and interest, S475 100000.
To put such a burden on the people
who most patronize the railroads
means perpetual poverty.
But that is not all. The men who
run these roads hold Sl14,OOO.OOO Of
so.called paid-up stock. issued to
themselves. Their purpose in pro.
curing an extension OF time and
rule under refunding Is to make divi-
dends ON this stock. We cannot
figure on what these dividends may
amount to in the course OF half u
century. because they will be limit
ed only by the amount that can be
squeezed out Of the people Of Cali
fornia and the country between here
aud the Missouri River.
Furthermore, the fact remains
that with this refuuding proposition
completed the companies will be
growing stronger and more indie
pendent OF the Government and the
law every year. n thoy can control
Congress and beat the people now
by means of a refunding bill. they or
their successors will be still better
able to do as they please with Gov
eminent and people right along for
fifty years more. Judging by ex-
pericnce, interest will be accruing
on the new bonds, for the companies
will he collecting il from the people
and putting II in their pockets in-
stead Of paying IL over to the Gov
eminent.
Such is the magnitude OF tho out
rage involved in the refunding propo.
sition. The only way TO ward OF
this impending calamity is fore
closure. That will give tho Govern.
ment the road toward repayment Of
it's second. mortgage bonds aud &C.
crued interest. The debt is more
than twice what the roads are worth.
The private estates Of the parties
who have overreach.d the Govern
ment are liable aud can he seized by
courts OF equity to make good the
deficiency. Foreclosure, taking the
road and all property belong
ing to IL OF right, Is simply
making the best OF bad bar
gain for the Governments benefit.
With due diligence IN applying pres
ent remedies and the progress OF
settlement the Government may yet
recoup itself; at any rate, the loss
will bs made up to the country by
virtue al regulated Government
competition IN overland Transports.
ton. Blu. what in OF most import.
apce, foreclosure will wipe out Sli4,-
OOU,0oO OF bogus stock and relieve
the community OF the burden Of
payinr dividends thereon.
As for the FIRST. mortgage bonds,
amounting to SG0,OO0,OOO, for which
the Government will become rsspon-
siblc, recourse must bs had to suits
against the persons and estates Of
those who have been looting the
roads, the Government aud the PEG.
ple for tn" last thirty years. Th.y
are amply abb" 10 pay aud suit III
equity would afford opportunities
Tor showing the ways aud means by
which the income snd grants OF
various kinds uado to ia. roads
have been diyerIod from their proper
course to enrich few individuals
Ia the face Of such astounding
facts will sensible people talk about
the impolicy 81 Government control
of single line OF railroad which
the Government has paid for, or the
danger Of embarrassing a university
when no real daugor Of that kind
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