The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1895-11-27
THE COMING CONFLICT CONCERN
ING THE PACIFIC RAILROAD
DEBTS.

Senator Thurston has declared in an
authentic interview that the Govern
ment intended to operate the connect
ing links of road which form the line
from the Missouri River to the Pacific
Ocean as one road, and in the interest
Of the establishment OF this original
intent, he proposes:
First, that the Government sell its
claim against the Union Pacific and
Central Pacific at auction; and second,
that minimum of forty cents on the
dollar be fixed as the auction Hmita-
ton
It is no longer secret that a powerful
syndicate has been formed for the pur-
pose of recognizing the Union Pacific,
and this syndicate evidently believes it
self strong enough to bid in the Gov
ernment's claim at forty cents on the
dollar.
The aggregate debt of the Union Pa
cifc and Central Pacific, including the
original bonds loaned by the Govern
ment, and the interest accumulation,
which has never been paid amounts to
S140,00000 and 40 per cent. of this
sum amounts to S56,000,000.
Senator Thurston-Senator by the
grace Of the Union Paciic-and the
late chief solicitor of that corporation,
practically proposes to give the Gov
eminent $56.000,000 for its second
mortgage claim against the Union Pa
cifc, the Kansas Pacific, the Central
Pacific and the Western Pacific and
consolidate the ownership of these lines
with an Eastern management con-
trolled by Eastern sympathies and ulti-
mate Eastern intentions. Senator
Thurston has munificent ideas He is
evidently accustomed to dealing with
very large figures. He is going to ask
the Government to forego the collec-
ton Of SS4, 100000, and he is stupid
enough to assume that the people of
the United States do not understand
that to forego the collection of this
claim is the equivalent OF making
present of it to the Union Pacific syndi-
cate which proposes to reorganize that
concern.
Mr.. c. p. Huntington has made dec
iaration. The Central Pacific on the LIST
day of next July viii owe the Govern
ment from fifty to ffty-five million
dollars, and Mr.. c. P. Huntington has
proposed that the Government give an
extension of time for 100 years at from
two to three per cent. interest; and
that the principal be paid in INSTALL
ments. Huntington's plan contem-
plates the payment of the entire debt
In annual installments and interest on
the deferred payments. This is a
highly honorable proposition for an in
solvent or bankrupt debtor to make.
Confessing their inability to pay what
they owe the Government, these rail-
roads come forward. one the Union
Pacific, with proposition to the Gov
eminent to forego 60 per cent. of its
claim; the other. the Central, to pay
the claim in full with interest on de-
ferred payments, asking what every
insolvent debtor has right to ask, the
forbearance of time.
Senator Thurston, who represents
the Union Pacific Railroad Company
i'm the Senate of the United States,
will urge his proposal with all the
pertinacity OF one who can afford to
spend S10,00oo00 TO make his PROPOSE
ton or his point good. And so there is
the prospect of very lively war
Between the proposition of giving the
Pacific railroads 60 per cent. of their in
debtedness and the proposition of pay
ING in. full. with interest on deferred
navments. there is no room for hesi-
fancy as to choice. Senator Thurston' S
nronosition is essentially dishonest,
while C. P. Huntington's proposition
Possesses all the elements of ordinary