The record-union., 1895-01-30

out OF the difficulty. This Government
must take these roads for the debts.
The people of the United States who
have built up this road and supported it
and been oppressed by it. want to control
it. Who should have the benefits that
now come from the Central Pacific Rail
road? The people Of the State of Cali
fornia who have toiled for it, and built
and supported this road. These are the
people that propose, by this resolution,
shall have it. That Is the fair PROPOSE
tion--it is honest, and appeals to your
sense of right, and l believe the National
Congress will adopt some such PROPOSE
ton on the line of the Mcguire bill.
There is another reason, too, why these
railroad magnates want to have, in the in
terest of the railroad, new foreclosure
BILL. The one that is now on the statute
book does not suit these corporate mag
mates. 1t is too severe; it gives too great
discreet onary power to the officers of
the United States.
The present law allows the road to be
taken by the Government when the Sc
curlty is deemed insufficient and that
the rights of the United States can fore
close on such contingency.
read from the supplement to the re-
vised statute OF the United States. Vol
ume l., 1874 to 1891, page 557, to support
this view. There is your common law
foreclosure. There is your foreclosure,
and the right to take it and operate it, and
the United States are in the position of
mortgage as they would be under COM
mon law. The proposition is this: that
the United States is a great creditor OF
these roads; the position is like the man
who is owing great sum of money Sc
cured by mortgage upon a farm. He
don't want the farm; he don't desire to
go INTO the business Of farming; but
there is his money represented there.
The prudent, sensible course would be to
take the farm for the mortgage and en-
gage in the business of farming. The
Government of the United States is in the
same position. They ought to take con-
troll, and they ought to do it for the rea-
son that it best protects their securities
That is whatsthis resolution wants them
to do. That is what this resolution calls
for. l read again: $40 enter into and
take possession of and forever hereafter
operate the said Central Pacific Railroad,
or so much thereof as lies east of Sacra-
mento." This is to be done for the bene-
ut OF the people who really built the
road.
Now, gentlemen of the Senate, l claim
that that is the proposition-the solution
OF the whole question. These resolutions
are good in themselves, and back of the
resolution Introduced by Senator Buggy
is this ono ideratiOn-sincerity, up
rightuess of character, desire to do good
of the State of California, and | honestly
declare 1t the full mead of that COM
mendatlOn; but we must not only direct
our attack upon the Reilly refunding bill
and similar measures, but we must go
further. 1t IS time when vast interests
are involved, and my resolution, if | may
be pardoned for using that term of ego
tism, not only attacks the Reilly retundiug
bill and any similar measure, but goes
further and says to the people Of our
National Legislature that the people of
the State OF California want this road.
California has done more to support
this road than any other class of people,
and we want it. We want to run that
road; not so much as the naturalization
OF the railroads as to get out of II What.We
have put in ii, Inc people of the State of
California are the equitable owners OF
that road: they have built it; they have
paid the charges; they have given to the
promoters OF the scheme everything they
asked. Now IL is going 10 be taken from
those men who won't pay the purchase
price. Who shall haye it? by every
consideration OF equity and justice. the
people who built 1t and the people who
sustain it.
senator Earl-Will the Senator from
Hum boldt yield Tor a question!
Senator McGowan-Certainly.
Senator Earl-Iu providing a new reso-
luton that the Government of the United
States shall, out of its own resources, pay
OF the existing liens of the Central Pa
citc Railroad, do you mean to suggest in
any way that the Federal Government
shall make no effort TO recover the LEGAL
anu equitable assets OF the road that may
have been traudulently diverted into the
hands OF private individuals? Do
you mean IN any way 10 imply that
the Government should not exhaust
every endeaVOr 10 pursue such assets in
the hands of Dri vat a iuGi yyi1u9IS in
hands OF The estates, incorporated or
otherwise, Of deceased stockholders in
such roads, or in the hands OF other cor
porations-either railroad corporations or
otherwise?
senator McGowan-Not by any means.
l am glad the Senator called my atteu-
ton 10 Il. do not desire To weary the
Senate by detailed arguments. BY no
means. My object in asking that the
liens be discharged, il prior liens they be,
Is that 1t may not come to the people of
the State with big mortgage upon ii, for
the people VINO have already paid for 1t
would have TO turn around and pay the
prior liens. | want the Government of
the United States 10 pursue every honest
dollar owed to the Government and to
collect from everyone who owes 1t
justly the last dollar.
But that IS provided for at the present
time. The statutes OF this State make
tionate share. Suppose now, for the sake
OF argument, that someone who is inter-
ested in the Central Pacific Railroad
owed the Government money-a per-
sonal liability. Suppose they 90 TO
make settlement. 1t is the easiest
thing in the world to say, I'VE paid in
your liability i'll this road because we
hold claim against yOu," and the stat
ute OF California now in force gives us
the right TO make every shareholder pay
his proportionate share. That is the
State regulation, ana in the absence of
United States regulation it controla. By
law, by common law, by law in the court
of equity, the Government of the United
States can pursue every dollar that has
been iraudulently diverted. They can
make the stockholders of these lines ac-
count tor the rents, issues and profits,
and they can go into the United States
Courts and show where money has been
taken from the earnings of the road and
diverted, and every dollar will be re-
covered upon showing Of such diver
sion.
Now, Of course, that is the law. but it
is assumed that when Congress comes to
legislate upon this subject there are men
there who know the law, honest men,
Who are looking to the interest of the
people, and, knowing that, will see that
all these safeguards are thrown around
the statute. In addition to these safe
guards, In the way of law existing at the
present time, they can collect from them,
and that is the answer to the Senator
from Alameda. l submit that this reso-
luton ought to be adopted, because it
oilers he solution for the whole problem
and the whole proposition.
Senator Burke said he had great conf
dence in Senator McGoWan. and that he
believed he was sincere and earnest in
his views, but that he was obliged to dis
agrea with MIN. He was opposed to hag-
ming over the nunstinn and thn,,c.ht -.