The morning call., 1894-06-10
RAILROAD DEBTS.

At the base OF all propositions to refund
the Pacific railroad debts lies the question
If one class of debts should be considered
as less binding than all other classes. The
commercial rule Is that man who cannot
either pay his debts or make his creditors
secure OF future payment must hand over
his property. 1t is not considered that a
renewal OF a note is either payment OF Sc
curity.
The chairman If the House Committee
OH Railroads is reported to have prepared
2 bill which al the first glance seems well
adapted 10 collect tile debt Of the railroad
companies in The course Of fifty wears.
The bill provides for the semLannual pay
ment of interest and payments at stated
times CD account of principal. If all the
provisions OF the bill should be complied
with the debt would be paid within the
period mentioned. But no security can be
given that the provisions of the dill VIII be
complied with. When Congress passed the
original subsidy bill it entertained no mis-
givings as 10 the purpose Of the companies
10 keep their part of the contract. II did not
anticipate at the time that it would be
called upon 10 accept secOnd-mortgage
bonds in place Of first. Neither aid il an
ticipate that remarkable judicial decision
which released the companies from oDii-
cation 10 paw any interest until all the
bonds should mature. YET it is these two
concessions, made at the instigatiun Of the
railroad companies, that are responsible
for the fact that after thirty years no con-
siderable part Of the debt has been paid
But it may be said that future Congresses
will not dare TO tTlfle with the conditions
now imposed. Concerning that we do not
know. 1t is now proposed 20 leave the
companies in possession of all their arms
and ammunition. The refunding of the
debt VIII make them stronger than ever
The menace that now threatens them Will
be Withdrawn. They will be at liberty to
resume their old tactics in relation 10 Con-
gress and the courts. With a ffty years
lease Of life they can set about making
their homes comfortable.
But above the question Of payment or
non payment Of the debt is the question Of
example. Shall we hold up before the o.
OOOO0O people of the United States the
spectacle of men being allowed to appro-
pirate to their own use and hold millions
Of public money while refusing TO pay
their deb,s. The roads have made money
the owners and the managers have d.
verted the earnings of the roads aud the
profits of construction among themselves,
II is pleaded that the statute OF limitation
runs against some OF the original owners
or their estates. and that one has made
good use Of MS part Of the appropriations.
But these considerations do not affect the
moral integrity Of the debt It does not
affect the fact that they have avoided pay
ment Of debts By methods of as doubtful
morality as The evasion of payment in it.
self
1t Is quite time, at whatever cost to the
Government, to deprive this corporation
of tbs power to manipulate courts and
legislative bodies in its own interests.
The possession and exercise of this power
has been a blight upon California, Il
has kept honest men out Of politics and in
vited dishonest men in. Il has given aspir-
ing, self-respecting men the alternative of
doing the bidding of the corporation or
remaining in obscurity. 1t has stood at
the door Of almost every State, county or
municipal convention that has been held
in this State in the last thirty years. and
barred out men it could not corrupt. Ii
has subordtnated every interest of Califor.
MIA, industrial, moral and political, TO its
own Acknowledgement. lis eliminating
activity is a proposition that Congress
give 1t a new lease Of life, In full posses
sion OF all the powers that in the past
have made 1t the scOurge of our people.