The record-union., 1896-02-04
FORECLOOE AND RUIN.
What Foreclosure Would Mean to
This Coast.
It Would Para1yze Every Industry in
This State-nI-Considered
Propositions.

(From the San Francisco News letter.
The man who will not consider all the
essential elements of q problem has not
qualified himself to form, much less to
express an opinion as to its solution.
That is the position exactly of Mayor
Sutro and his Committee of Fifty in re-
gard to the proposal to refund the rail-
roads Indebtedness to the Government.
They will not-dare not-say what bet
ter plan they have to substitute for that
which now holds the field. Upon any
other conceivable scheme they would
divide and split into fragments. A
number of them, being cranks, favored
the Government taking and operating
the roads. Another section of them, be-
ing gifted with more worldly wisdom,
saw at once that such a proposal would
never do; that it was opposed to the
whole framework and genius of our
Government; that it would not bear
the test of examination and argument,
and that it would not command the
support of the Representatives of a
single State in the Union. Promptly,
and somewhat excitedly the knaves
began to belabor the fools and beat
them into submission. The Cali and
Examiner" were turned loose" to
wrestle with and warn the Government
ownership men. They were told that
the opposition must content itself with
opposing-simply that and nothing
more. There must not be so much as a
suggestion of an alternative plan. Why?
Because the knavish portion of the COM
mittee knows full well that it is not
possible to formulate any other scheme
hof NIL af in
oessful operation and protect the Gov
ernment from ultimate loss. That po-
sition is here asserted boldly, and with
out fear of its meeting with anything
like respectful contradiction. The un-
doubted fact is that the opposition has
no alternative plan and that it cannot
think of one that it dare venture to sub
NIT to public examination and discus
sion. 1t knows it cannot, and that is
why it confines itself to the mere stolid
act of opposing. 1t is also why the fool
ish side of the Committee of Fifty was
so incontinently suppressed In this
great constructive country of ours
thinking men will demand something
more than mere destruction for de-
s1ruction's sake. They will desire TO
conserve what they already have and to
enlarge its scope and usefulness, if pos
sible. If the Committee of Fifty can
show how this can be done by some
more promising plan than that which
they are opposing, well and good; let
them pat mat plan in evidence and give
the people whom they are endeavoring
to lead, or mislead, an opportunity of
seeing wilat~it is like. If they cannot do
that, and until they do it, there remains
no further occasion or excuse for their
engaging the attention of honest, earn
esISminded men.
It@tS fitting as well as pleasurable to |
turn TO that much larger and better
class Of people, who, without guile or
malice in their hearts, are intent only |
upon doing that which may seem wisest
and best for the present and future in |
terests of the State. The paramount re-
Quirement of California is continuity in |
the railroads operations and develop |
ment. Whatever else happens that |
must be secured. To suspend or i'm
pede those operations by the lengthy
litigation which foreclosure proceed |
ings would involve would be to paralyze |
every industry in the State. Suppos- |
ing the litigation ended and the fore
closure complete, what then? Before |
the Government could take and operate |
the prior lien upon it, That is to say, |
it would have to pay off the first mort |
gage bonds. In doing that it would be |
throwing good money after bad, for |
there is no doubt but that the whole line |
could be paralleled for less money than |
is involved in paying off the first bonds |
Further, supposing the litigation ended, |
and this enormous additional liability !
incurred, what would the Government |
come into possession of? Simply a road |
bed from Ogden to San Jose, without |
terminal facilities, or an entrance into |
this city. 1t would have no right to the /
side lines and feeders which would |
bring to the main line the most profita-
bic portion of its business. Clearly this |
loss would have to be made good some |
how. How else could it be made good |
than by increased fares and freights? |
All that, be it remembered, in the name |
and interests of cheaper transporta-
tioni With national ownership Cali |
fornia's interest in the road would be |
but insignificant. On a population ratio |
1t would be less than one in fifty. Is |
1t not folly to suppose that the larger |
interests of the East would yield to the |
misguided sentiment of California that |
transportation should be afforded our
favored section at less than cost price? /
To develop railroad business requires |
singular acuteness and eternal vigilance |
Rivals have to be headed off and new
country tapped. Does not every man |
with a head upon his shoulders know |
that our Government could undertake |
no such business with any hope of sue |
cess. and that if it attempted it, the in
evitable result would be a fiasco that |
would put the whole country to shame? |
With changes of administration fire. |
quent, with the spoils system rampant, |
and with no organized and trained civil |
service, the Government could not be-
gin to make a success of operating a |
great transcontinental railroad. What /
ever else may be said of the men who +