New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-12-16
THE SOUTHERN PACIFIC.
cALIFoRNIA's DEMAND EQUIVALENT TO
CONFISCATION.
.o.,r PECULIAR FEATURES OF THE ATTACK on
THE REILLY FUNDING BILL-sTORY OF THE
ANrIMoNoPoLY AGITATIoN-wHAr
TUE PAuROAD COMPANY ASKS

THE REILLY FUNDING BILI-sTORY OF THE
ANTIMoNoPoLY AGITATIoN-wHAT
THE RAILROAD COMPANY ASKS.
San Francisco, Nov. 30 (SpeciaD.-As the Reilly
x,,ndjng bill, promises to be of the features Of
,,s coming session Of Congress. and denuncation
~ formed the main stock in trade Of the Demo-
r,,r candidate, who elected Governor of
california. 1t may interest Eastern people 10 know
xactly the position that Californians take In
ard to this question of refunding the debt OF the
Central Pacific Railroad. The Reilly bill provides
,or the Governments extending the time for the
svment by the Central Pacific Railroad Of $780,
m OF second mortgage bonds by fifty years. at
nor cent interest. Mr. Huntington at first thought
,h,s too short period and too high rate OF in
.o,est His plan was 100 years extension at 2 per
os,t but TO this there many objections
urged that It never had any chance OF success. In
rsrard 10 Mr.. Reilly's plan several Congressman
have urged that the ffty-year term too long
and this should be cut TO seventeen years Others.
ro,sby those from the Pacific Coast and the great
mississippi Valley States have urged that the Gov
eminent should foreclose the mortgage and operate
the road
The Eastern idea seems to be that this fore
.,osure would simply make the Government stand
4, the same relation the English and other stock
holders that the Central Pacific sustains to-day;
IN, that is not the California idea. 1t may be
broadly said that fully IS cent OF the people OF
california hold that the Government should fore
close the mortgage take possession OF the Central
pacific and operate II la the interest Of shippers
from this state. In other words. their position Is
that the Government should confscate the property
~ all bondholders, and at one stroke wipe off the
slate all the old Indebtedness. Then, with no debt
on which to pay interest. the Government could
ooerate the road so to pay the actual expenses.
Ths, would be a good thing for all Californians,
q could not fail greatly to reduce rates OF trans
variation Those who urge 1t declare that the Gov
eminent would recoup itself from the enormous
increase of reghts and fares that would follow and
from the stimulus which II would give to the de-
yeopment of California and OTTER Pacific States and
Territories The Californians sense of justice does
not seem TO revolt at this proposition. which means
vrtuay the spoliation Of the English bondholders,
many of whom paid 104 for their bonds and none
of whom bought their securities for IS.
ORIGIN OF THE FIGHT.
Perhaps one reason for this curious perversion OF
ordinary business sentiment and ordinary regard for
fair and honest dealing is TO be found In the long
and bitter fight which has been made against the
railroad company since the saEdot days. Before
Denis Kearney and his gang succeeded in passing the
nov Constitution and in handing the State
for ten years 70 a mob of uneducated and lawess
Socialists the railroad company was regarded as the
great developing agent of California II had shown
phenomenal energy in extending Its lines; IT had
sold large lots of land very reasonable terms II
had conducted experiments with many products
which were of vast benefit TO farmers and fruit
growers In a word. 1t had taken the lead In every
great public movement, and ii had been praised by
the most prominent public men as deserving OF
credit for the enormous advance made by Call
fornia in the decade from 1861 to 1871
Then came the uprising of the sandlot dema-
Rogues who Illuminated against the railroad mo-
nopoly and declared that the only hope OF the state
lay in the passage of a new Constitution WHICH
should reach and tax the millionaire In the same
proportion the poor man. This movement was
aided by the collapse of the Comstock mines OF
Nevada which had poured stream OF precious
metals into San Francisco for over five years All
business was depressed. the people who mad oeeh
making large profits on mining stocks or the sup
pies for miners were suddenly forced TO economize'
the era of extrayagant living. a relic OF pioneer
days had come TO end All this created intense
herness among the large class that Iesen'eo any
sAnhkage OF income.
So they turned and made what they were p.eased
TO term the railroad monopoly the scapegoat fof
all the Ills from which California was suffering
Every politician who wished to gain the FAVOR oi
his constituents rang the changes on this anti
rononoy question. 1t became the stock In trade
OF all the political schemers. many of whom when
elected to State positions or to Congress- al once
accepted favors Of the railroad company ana al
mitted that they had made their campaign unuer
false pretences The constant reiteration OF these
charges against the railroad company win the
publication of unfair comparisons between rates OF
Eastern roads and of the Central ana southern
Pacific. permanently coored the minds OF the peo-
DE and warped their judgment Then there came
an unfortunate conflict between agents OF the ram
road and settlers In the district known as Musse'
Slough. in Tulare County In which blood was
shed All these elements combined TO arouse popu-
lar antagonsm 10 the railroad company-the same
feeling that may be seen in certain states i'he Ne
braska and Kansas against the Union Pacinc RAN
road
A WELL-WORN RAI.LYING CRY.
II is this feeling which impels so many TO demand
that the Government take possession OF the 'ehUai
Pacific. The ant-monopolists have made sorry
showing but this seems forgotten The new CON
stution drove millions OF capital out OF California
10 New-York Chicago and other cities; the scheine
yoor nan han on the -ich the administration Of
Justice Is no better and purer tnah ~ wa D'i h,,
he State is looted every four years and the cost
Of government IS greater IN proportion u
Yet the Old slogan has lost none of It's power. ana
nmonopoly is still the raiiyns cry - hvu san
pres sion in the monster petition got up py %
Francisco newspaper against the Reilly Dill
burden Of this pepo was Ra hat rvaS must be-
tnguished IL said virtually In SO many worus ., ma ma
rosd pSe beneat Of the profits which had been
gained by the railroad managers ~ ap thsr tba
many prominent political speakers went In the CAM
paign which is just ended 49, ..so NAV he
That this is no overstatement Of the case may c Ie
seen from the following extract from an aT''c y,
contributed by Governor-eect James H. budu "
San Francisco newspaper: ,, oA,.u,, os -
would be for the G9vernnTn o, the
people OF California and the other Pacinc o.a'e,
This should be upon the basis OF the pare Coz,
the service and this again. as nave Deen assu =
by competent persons familiar with the iacts a III
With such matters, would be about one-thiro Vi '"e
present charges. . -. .,a moaning OF
which there can be doubt III sums up rsIir"ad
and fairly the poson OF California. Inc IalIioadd
and the creditors OF the railroad are to pc
tie csntrsl Pacific solely for the benefit or the pe0-
pie Of California This seems IKE purely S se,'1 IL
Proposition hut IL IL the California vlcw' anu IL ~,
web for those who desire 10 get the correct iae'' "
bear this In mind. -, u.ooLhoi1ers 81