The record-union., 1895-12-09
REIGN OF CONFUSION.
Desperate Position Of San Francisco
Newspapers.
How They Are Twisting and Turn
ing to Get Position to
stand On.
From the San Francisco Post)


Our morning contemporaries appear
to be in state of retreat amounting to
panic. They have evidently lost their
heads. Just what to do with the Pa
cific railroad debts they have no very
clear conception. The absence of any
well defined line of policy in their minds
rises out of uncertainty as TO what the
railroads themselves want. Our es-
teemed contemporaries desire Whatever
may be undesirable to the railroads.
The courts having decided that the
original incorporators and present
stockholders of the Southern Pacific
Company are not personally liable for
the debt contracted with the Govern
ment, it follows that the only recourse
of the Government is against the lines
and equipment of the Central Pacific.
This is a very pretty position for the
railroads. There is a first mortgage,
and unless Congress does something
the first mortgage will take the road.
Ii the first mortgage is forecloSed and
the railroads sold, then the Govern
ment would have to become a bidder,
or the debt which is becoming due to it
would be resting on air
The Chronicle declared that the Gov
ernment ought not to take possession
OF the Pacific railroads. Upon this the
Examiner charged it with being an
Arnold. But the Examiner has changed
front. 1t is now simply fighting all
funding bills, and has forgotten that it
promoted the presentation of a petit
tion containing 100000 names demand
ing that the Government take possess
sion of these roads and operate them in
the interest of the people of California.
The Chronicle evidently saw that mere
opposition to a funding bill created
the exact opportunity for which the
Central and Union Pacific roads had
lcnged for. If Congress does nothing
the first mortgage takes the roads. The
amount of Indebtedness of the Pacific
roads. according to Hoke Smith, is
S117 ,000,000. Is there a man so hope
lessly stupid as not to understand that
unless some disposition is made for the
payment of this debt-Some accommo-
dation reached somewhere, something
done to assert and maintain the Gov
ernment's claim against these roads
the first mortgage will be foreclosed
and this S117, 600 be forever lost to
the people of the United States.
The Chronicle evidently saw this
point and hastened to hedge. Before
many days the Examiner will be in
this same position. 1t is the easiest
thing in the world for Mr. Huntington
to stand before the country and say
that he will pay the debt of the Central
Pacific Railroad if the Government will
give him time, and that he will pay a
penalty in the way of interest for an
extension of time, but he knows, as
everybody else should know, that the
first mortgage natures at the same
time with the Governments second
lien, and he knows that the first lien
will take the property.
Great railroad kings do not fight each
other to the extent of losing money.
The bids at any foreclosure sale will not
amount to any more than the value of
the first mortgage, unless the Govern
ment itself comes in TO be a bidder. The
Chronicle meets this emergency by de-
claring that the Government ought to
face the music, take the road and oper-
ate it as Government road. The Ex-
aminer, under the impracticable leader
ship of Don Quixote Sutro proposes to
fight Mr.. Huntington's funding bill
scheme.
If Huntington wants the Govern
ment's second lien discharged without
payment, and wants to take in the
road in satisfaction of the first mort
gage, of which he probably holds very
large share, he could not ask better
thing than the defeat of his funding
bill The defeat of that bill means the
perpetuation of the Southern Pacific
control from Ogden to San Jose, and
Huntington knows it,
1t is quite evident that neither of our
contemporaries knows exactly what
it wants; and this confusion of ideas
arises out of the fact that they really
do not know what Huntington and the
syndicate owning the Union Pacific
want If they could believe Hunting
tons professions that he wants an ex-
tension of time, they would probably
agree to fight the funding bill. But
the Chronicle, not believing in the
sincerity of Huntington's professions
that he wants to pay the Government
what he owes it, has evidently decided
to copper that proposition by pro-
posing that the Government take the
road The Examiner, evidently believ-
ing Mr. Huntington to be sincere in his
declaration that he desires time to dis
charge the debt has concluded to cop
per" his proposition merely as meas
ure of antagonism-
There is, therefore, a substantial
agreement in the point of motive not
withstanding the apparent wide diverg-
ence of policy. our contemporaries did
well in the controversy over their cir
culation On that field they manifested
admirable skill and prowess. Their
present abject squabble to get into the
position they think will most nearly
meet the approval of the sandlot, is
rapidly making them both ridiculous.