The morning call., 1895-01-18
DODGING THEIR DEBT.
Union Pacific Lawyers Before
Congress.
ELLERY ANDERSON'S PLAN.
Mr.. Reilly Does Not Look on 1t With
Favor.
C4NINETTIS BILL FOR FORECLOSURE.
The Exact Amount Of Justice to Which
the Managers of the Reads
Ire Entitled.
ClNIlETTI'S BILL FOR FORECLOSURE.

mlttee on Pacific Roads IO-udy CoIIo1ueIeu
the propositions for q settlement made re-
Gently by the representatives OF the Union
Pacific. Francis L. StetsOn was present
during part of the discussion to explain
more fully the views of the company.
From the tenor of the talk it seemed i'm
probable thatany radical changes from the
plan in the Reilly bill will be made,
although minor amendments are under
consideration. The company's proposal
that the rate OF interest be reduced from
70 > per cent did not seem to find much
favor The Reilly bill provides that in the
event of default in any payment for ninety
DAYS the entire debts mature, but an
amendment was added making this section
operative at the option of the Secretary of
the Treasury. Half an hour was consumed
IN debating a proposal that the Govern
ment assume the first mortgage of the
Union Pacific, which, with the application
OF the sinking fund to its payment so far
as it will go, leaves a debt OF $20,000,00O.
It was argued from the company's stand
point that the company will be obliged to
pay 6 per cent on this while the Govern
ment should carry it at 2 per cent or ~
per cent, and the saving in interest be ap-
piled directly to the Government debt,
Chairman Reilly said to the CALL corre-
spondent that his committee did not seem
inclined TO modify the funding bill, as
recommended by the Union Pacific. He
thought the interest should not be lowered
nor the annual installments reduced in
amount. The bill will practically stand as
1t is and he believes it will pass the House
when it comes up next week.
The New York Herald has come out
strongly against the funding bill and in
favor of Representative Caminettis fore
closure measure. 1t has strong editorial
to-day commencing the features of Can't
netti's scheme. The Herald's support will
be powerful aid to Californians in their
fight against the funding bill and encour-
ages them greatly.
Unlike Geary, Representative CANT
netti, instead of showing spirit of compro-
mise, wants to fight to the last ditch. He
said to the CALL correspondent tonight:
''There must not be any compromise on
the Pacific railroad debt question. The
people should see to it that the defaulting
roads iquidate their debts or forfeit their
propeTtycas provided by law. This was
an alternative they accepted in writing.
They should be made to abide it. Any
other course would, in my Judgment, be a
base betrayal of the rights of the people.
There could be but one condition emitting
those who had received such munificent
treatment in land, money and opportuni-
ties from the United States to considera-
ton and forbearance. This consideration
could be said to exist if the gifts had been
honestly applied to carry out the original
purpose of connecting the Pacific Coast
with the balance of the Union by
means of railroads; if the earnings
in maintaining and protecting such
project; and if in the effort so to do the
projectors and their associates had ex-
hausted their all, and were now without
means to meet the obligations imposed
upon them by law. That these conditions
do not exist is a notorious fact. That all
the parties, near or remote, to the greatest
grab in our history are many times mil
Jionaires, as result of their connection
with the management of these roads is
equally notorious. Ten per cent--yes,
much less-of their wealth would satisfy
the Government lien. If an attempt had
been made in good faith by either of the
defaulting companies to try to pay this
debt some excuse might be set up, but the
truth is they have even refused from the
beginning to pay interest, and our Govern
ment was compelled, in order to main
tain its lien, to meet that demand
while the manipulators were enriching
themselves. Hence no equity exists in
their behalf. There is nothing, in fact, on
irh
Judgment of the public or of Congress for
relief. The Pattison commission and other
Investigations. show unlawful diversion of
funds by various sideshows, such as the
Credit Mobilier and the Contract and FL
nance Company, aggregating sums so vast
as would many times pay the amount due
on the first and second mortgage bonds.
This was one of the many methods
employed to defraud the Government
Rather than an extension OF time and a
consequent conformation of many unlawful
proceedings which have wrecked the valu-
able properties while their manipulators by
magic became fabulously rich, there should
be immediate measures taken to prevent
further loss and suitable proceeding insti-
tuted to compel restitution of the funds
and property illegally appropriated.
"The solution of the transportation prob
lem on the Pacific Coast lies in Government
ownership of these roads. We should
grasp at the opportunity presented by their
failure to pay these bonds as they become
due, and thus emancipate the people of
California.
Government ownership under the sys-
tenn provided by my bill would allow all
connecting lines or other transportation
companies to compete over the proposed
Government roads for California to and
from the East, privilege which many
now seek. Just think of the leading rail-
road companies of the East in California
bidding for business against each other as
they do east of the Missouri River. This
is not only possible, but certain to follow if
system like that is established. What
would result can be readily imagined. Our
population would double in five years, and
our fellow-citizens East, North and South
would receive the benefits resulting from
an increasing commerce and the ability to
procure our fruits and products at reason
able rates. The people of California should
awaken at the prospect of deliverance and
esta blish their commercial independence
by thwarting the purpose of the, organized
and powerful com bination which menaces
their future. There is no time to be lost.