The San Francisco call., 1895-10-19

adjustment of the Pacific railroads debt
to the Government?
5. If the funding bill should be again de-
feated do you think the first mortgage
would be foreclosed?
6. Foreclosure was threatened when the
Reilly funding bill was before Congress.
Why, in your opinion, was the threat
never carried out?
Z. If the first mortgage is foreclosed,
what becomes OF the Government mort
gage?
s. If the Government mortgage falls in
the event of the first mortgage being closed,
would you, speaking for the railroads, rec
ognize any moral obligation to pay the
debt, or would you stand on your strict
legal rights?
8. How much does the Central Pacif C
Railroad owe the Government? What is
your own idea of the debt?
/. What legislation does the
Pacific railroad propose to
try to obtain from, the next
CongreSs2
Simply such an act as will settle fairly
and justly the debt of the Central Pacific
Railroad to the Government. 1t is busi-
ness question which should be looked at
from the same standpoint as the debt of
one individual to another. 1t is simply a
case of the debtor being unable to pay his
creditor. But IN this case the Govern
ment, if it did not get the full amount of
the debt, would have the satisfaction of
l..
roads being built seven years in ad-
vance of the time required by the
act under which it was created than
the amount of bonded aid that the Gov
ernment granted, and the Government
must have known that in giving a very
large subsidy in land to the Atlantic and
Pacific and the Northern Pacific Railroad
companies it would create an opposition
which would lessen if not entirely destroy
the security it had on the Central Pacific
road. But even if they did know this, it
was wise thing for the sovereign to do,
as the other two roads, like the Central
Pacific, policed, so to speak, a large sec
ton of country, thereby saving the Gov
ernment large sums of money, and their
existence gave TO the even sections of land
held by the Government value far in
advance of the value of the odd and even
sections together without such roads.
2. 1t has been stated that
the proponents Of a funding
bi1 claim that majority of
members Of the coming Con-
greSs tCiH vote an favor of
such an act as the Reilly bill,
and UiU also g0te to dXolC the
claim of the Southern Pacific
Company for $500, 900 for
services rendered the GOUer7l-
nlent, l0hich tCGS defeated dt
the last session. Hare you
any knowledge on this points
No, do not know what Congress will
do, but l presume it will do what is fair
and right as between the Government and
the railroads. l. representing more par
ticularly the Central Pacific Railroad Com
pany will be perfectly willing to have the
Government employ any able and honest
statistician to examine the company's
books from the beginning to the time of
such examination, and whatever they re-
port that the company can pay, and at the
same time take care of its other indie bted-
ness that has priority to the claim of the
Government, including the current ex-
penses, as we'll as the fixed charges, l
would be perfectly willing that the COM
pany should undertake to pay; but if such
payments require more from the company
than my judgment tells me can be done,
then l would, of course, rather let the Gov
ernment take the property than to agree
to do an impossibility.
As to what the Government owes the
Southern Pacific Company-a corporation
entirely distinct from the Central Pacific
l have no doubt the Government will
some time pay it, and as most of it is now
drawing interest, the longer the Govern
ment waits, of course the more it will have
to pay. That, think, will be understood
by all honest men, and | believe the pres
enE Congress will SO understand it and
have the courage of their convictions. If
they do they will pay the money which
has been earned.
g. What do g0at think WiU
be the probable vote OF Sen
Gtors aid Representatives on
this pOintP
/, of course, do not know what the vote
will be, but l will repeat that 1 cannot
believe otherwise than that when Congress
comes to act upon this question, composed,
as l believe the present one is, in the main
of able, honest men, they will do what is
Just and right and will not call upon the
company to do the impossible-that is, to
pay more than it can earn. In this, as in
other matters, all that is necessary for
legislative bodies to do is to know the right
and have the courage of their convictions,
then to speak on the merits of the ques-
ton itself without thinking what influence
their words may have upon those who are
to vote for or against them at some COM
ing election.
T. What, IN your uiew;
woutd be a fair adjustment
Of the Pacific railroads debt
to the GOUernment2
have already said that would recon-
mend the company to pay all it could earn
beyond what is necessary to meet the cur
rent expenses and the fixed charges that
are ahead OF the Government; that is in
terest, taxes, etc. The current expenses
must. of course, be paid, or else the en-
ployes of the railroad will leave their work
and nothing can be earned. If the people
OF this country understood the labor and
l., ol al. 4