The herald., 1894-11-01

them to build, ont OF tie profite, an
other and competing line upon which
the government has no mortgage claim.
and that they are now end have been
for at least q generation the undisputed
arbiters OF the commercial interests of
this state. we find that four years ago in
anticipation of the falling duo OF this
government debt, the proposition was
advanced from railroad headquarters
that the government of the United
States should extend the time OF pay
ment of the debt go as to allow them one
hundred years. additional time at l
per cent, in which to discharge their
obligation. 1t WAS not proposed that
they should discharge this obligation
by assessing themselves or out of their
own pockets. but it was simply asked
that the government of the United
States should turn over the
people OF the state OF Califor-
MIA to their tender merciee and
give to them the exclusive privilege OF
squeezing them for another century, in
consideration OF which they would doin
the future what they had failed to do in
the past, and that is, they would deduct
enough out OF the exorbitant profits
they would wiring from California to
discharge thor government obligations.
This proposition was 30 outrageous that
it was not considsred possible that it
would receive serious attention from any
quarter. In thie, however, we under-
estimated the persistence OF Mr. q. 7.
Huntington. The matter has become
living and vital isaue. In tho fret
place the election OF United States
senator In 1890. offered TO the people OF
this etate an opportunity OF sending to
the senate man who would act fairly
and iinpartially as between them and the
fraudulent directors OF the several Pa
cric railroads, IN the adjustment of this
question. Whom did our Republican
friends select? L,sking over the names
OF the great leaders of their party and
men who are above euspicion and
aefieh or corrupt methods, they
cnoee, to Sit as juror in HIS
own case, and to pass upon questions
involving his own intereata and hls own
honesty, and that of his copartners. as
well Gs questions involving his and their
fortnnes--tle president OF the Central
Pacific Railroad company. Mr. Leland
Stanford. From that timc to this it has
been realized by every ono in the Etete
of California that the people OF this state
would be called on TO speak in vigorous
terms upon this question before il could
be justly determined. At the last ees-
eion Of congress and in it's closing days a
bill was reported known as the Reilly
bill, which proposed to extend the time
OF payment for so years at 8 per cent. 1t
ia to bs said concerning this bill that it
was almost unanimously reported, and
was concurred in nv most OF the eastern
r~,o ~ hap a,f khn yrru mi un
OF politics. 1t was. however, tied up in
the vigorous opposition of the Democrat
ie representative from the Fourth dig
trict of California, Hon. James Il. Ma
guire. Mr.. Estes is both disingenuous
aud unfair IN stating that he is opposed
to the Reilly bill, which he charac-
terzss as a Democratic bill. He
certainly knew, as did every
member Of the Republican cons
vention at Sacramento, that while
the bill had not been reported at that
time some such bill. or some bill treat
ing upon the question Of tho railroad in
debtedness to the government must
necessarily be reported. Notwithstand-
ing this fact the Republican convention
at Sacramento absolutely ignored ali
reference to the railroad Indebtedness.
The reason for thie may perhaps be
found in the fact that large number at
least Of the delegates to that convention
went there upon free railroad passes,
and that the convention itself was DOM
mated and controlled by corrupt ring.
and the sentiments OF itc honest MEM
bers, particularly from the country,
suppressed and disregarded by the COR
rupt political boss, who hao secured con.
tyol of the Republican organization in
this state, ard nominated the Nhole
ticket, and who is now directing the
CANVASS in its behalf. This man, him
self of tainted record, is as notorious
ly the servant and tool OF the Southern
Pacific Railroad company as though he
wore it's livery. As a result OF the con-
slruction and ownership of the two
lines to which l have referred, by Mr..
Huntington and his associates, the pro-
ducers of the state of California have
been taxed for a generation upon ficti-
tious and watered capital. amounting to
more than $3.50, QUO, 600.
In other words, when the producers OF
this state desire to ship anything over
this transcontinsntal line. they are re-
quired to pay freight rates which will
not only be sufficient to enable the own
era to receive fair return upon their
investment, but to enable them to pay
interest and declare dividends upon
bonds and atcck which are absolutely
fictitious and represent pure water"
In the case of the Southern Pacific rail-
road, they built tho road for less than
the amount of the bonded Indebtedness
aud subsequently issued to themselves
$34, ,000,O of capital stock, and during
this last year OF 1884, when most of the
agricultural industries of the state have
been prostrate. they have not only paid
out OF their earnings the interest upon
the bonds which represent the actual
cost OF construction of the road, but
they have declared their usual divi-
dend OF 4 per cent upon their
100000 OF capital stock. 1t
is for this reason that grossly outrageous
charges are made by them for freight
transportation. As an orange grower
am somewhat familiar with their exorb-
liant charges upon that product. Two
years ago I paid $240 an acre freight
upon every acre of oranges produced,
and the average rate paid by the orange
orchardists in the San Gabriel valley
during that year was nearly $500 an acre.
j. A. Graves of Alhambra, who has an
eight-acre orange grove near Alhambra,
paid $640 an acre in freight, which can
be verified by anyone who will examine
his freight bills. When we demand re-
lief from euch charges and show to the
railroad freight agents that they sre alb
eolutely destructive. we are met by the
assertion that the Southern Pacific COM
pany is entitled 10 receive fair interest
:, NON ito co onitaIizafiop Vhia ia manis