The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1895-01-23
REILLps REFUNDING BILL.
Cons liberation of the Measure at TtCO
Capitals.


Capitals.
SACRAMENTO, Jan. Ex-senator MCGOWAN
introduced substitute for Senator Biggy's
resolution relating to the Reilly refunding
bill in the Judiciary Committee of the
Senate tonight.
He states that he had a consultation
with Senator Buggy relating to the joint
resolution introduced by that gentleman
protesting against the passage Ofthe Reilly
FINDING bill and that they had agreed
upon a substitute which he had prepared
as better fitted to subserve the interests of
all the people of the State. Senator Nc
Gowan then read his substitute bill, which
is as follows;
WHEREAS, The subsidy bonds of the United
States issued in aid of the construction of the
Central Pacific Railroad are about falling due,
as well as the obligations of the Central Pacific
Railroad Company to the United States
arising in connection herewith, and q
suitable time has now arrived for prop
erly settling and determining the relations
of the State of California and its people to
the Central Pacific Railroad and establishing
upon proper basis the future method of ad-
ministration of said railroad and the rates of
compensation to be hereafter charged for trans
DOILdllOn OF p6TSOuS ana property thereon, III
order that the State OF California may now be
relieved from the unjust burdens heretofore
imposed upon it and its people in connection
Herewith, and
WHEREAS California, since it became one of
the States Of the Union in 1850, has made large
contributions to and for the benefit OF the
Government OF the United States, for which
partly on account of its geographical separa-
ton from the older States of the Union and its
divergent interests, the said State has received
comparatively little return or compensation in
any form; and
Whereas, gThe contributions of the United
States toward the construction of the Central
Pacific Railroad were made for the most part
in order to secure to the United States the
creation of a transcontinental railroad as a
means of communication between widely
separated portions of the country and as a
military necessity to and for the benefit of the
whole of its people and not for any especial or
particular benefit or advantage to the State of
California: and
Whereas, Owing to the high prices of gold
and of materials and supplies prevailing at the
time of the construction of said railroad and
the mode and manner in which such construc-
ton thereof was carried on, the cost of said
railroad as represented by its first mortgage
bonds and the subsidy bonds of the United
States issued in aid thereof was greatly exag-
gerated; and,
Whereas Divers bills, among others the bill
known as the Reilly bill, are now pending in
Congress, most OF which bills contemplate an
extension of the debt of the Central Pacific
Railroad Company to the United States and the
retention of the said railroad in the hands of
the present managers thereof; and
whereas, Notwithstanding the equitable
right of the State of California and it's people
80 fIa
part thereof, without imposing upon them any
burdens predicated anywise upon the cost of
the creation of this railroad as military neces-
sity for the use and beneft of the whole country,
serious danger exists that the burden of pro-
viding for interest charges upon the great and
extraYagant outlay made in its construction
may be thrown upon the commerce of Califor-
MIA, and the commerce in which its people are
interested, and
Whereas, in the opinion of the Legislature of
the State of California, the use of the Central
Paelhc Railroad, or at least of so much thereof
as lies east OF the city of Sacramento, should
be furnished by the United States to the
people OF the State of California and
those interested and concerned in its
commerce without other compensation therefor
than such charges as may reasonably suffice to
defray the current expenses of the operation of
such portion of said railroad, and the United
States should provide and pay all costs and ex-
penses growing out OF the construction of said
railroad and the creation of said property:
RESOLVED, BY the Senate, the Assembly con-
curing, that Senators and Representatives of
the United States in Congress assembled be-
and they are hereby, earnestly requested to de-
feat said Reilly bin and all other measures of
the like character for the extension of the debt
OF the Central Pacific Railroad Company to the
United States, and that in lieu there
of an act be passed providing that the
United States shall, by its Secretary of War or
other proper officer designated by it on that
behalf, enter into and take possession of and
forever hereafter operate the said Central
Pacific Railroad, or at least so much thereof as
lies east OF the City of Sacramento, and shall
from its own resources pay, discharge and
cancel all existing debts constituting lien on
said property, and shall hereafter impose upon