The Louisiana populist., 1896-11-20
HUNTiNGTON'S SCHEME.
wants the Government to Wait 100
Years Longer.

Wants the Government to Wait 100
Years Longer.
The case of the Central Pacific rail-
road is one that justifies the govern
ment control of railroads. The rela-
tion Of the Central Pacific and the
government is thus stated by the
Twentieth Century:
The Central Pacific railroad COM
pany is bankrupt. Its immense in
de0tedness includes a round $50 0,000,-
600 to the United States government.
This sum represents principal and in
terest of per cent bonds, payable in
thirty years from date, issued by the
government to the builders of the Cen
trail Pacific road at different times be-
tween 1865 and 1872. The original
sum total of them all aggregated about
$2S,OO0.0O0. The first of these bonds
became payable In January, 1895, and
the interest during all those years, not
compounded, came to 1S0 per cent Of
the face value of the bonds. The re-
naming bonds fall due at intervals un-
TIL 1902. Now, the sole survivor Of the
four men who built the road is C. p.
Huntington, and he is responsible for
the bills that turn up so persistently
in congress.
MI. Huntington wishes congress to
decree that the railroad be granted
100 years longer in which to pay this
debt. Interest he says should be per
cent, and the United States govern
ment should become responsible for
both principal and interest of these
new 100 year bonds. The bonds now
existing are to be cancelled when the
new bonds make their appearance, and
the railroad itself shall be freed from
its present Indebtedness altogether.
The railroad proposes to pay principal
and interest of the new bonds in in
stallments, the last one falling due in
1897.
That is a very interesting scheme.
II 1t succeeds Mr.. Huntington will be
the most famous money maker that
ever lived. For these reasons:
The Central Pacific railroad exists
under California laws. 1t is not in
corporated under the national govern
ment Its charter expires in 1911.
Its anairs must be wound up then.
Should 1t pay its debts it may rein
corporate. If not, it goes into a re-
ceiver's hands. Under the laws of
California the four estates of Messrs.
Huntington, Stanford, Crocker and
Hopkins (the men who pushed the
road througD are liable for the in
debtedness. But when the govern
ment sued the Stanford estate, Mr..
Cleveland's attorney general failed to
carry the case to the courts on Its
merits, and lost before the supreme
court Of the United States. No ius-
tice changed his mind on this occa-
sion. The corporation disappears in
1911. Suppose the government took
possession of the road. 1t would get
two streaks of rust and a right of
way" Huntington's scheme, defeated
in the last democratic congress, and
revived in the last republican one.
grants him immunity from all liabil-
ity. Uncle Sam hands over his secur-
ity to Huntington, who gives him back
valise. Uncle Sans security repre-
sents $50 5.000, 900, plus $4,000, GOO prin-
cipal and interest respectively on the
entire Pacific debt, plus $20, 100000 of
sinking fund. plus millions more for
costs and interest. Huntington's valise
represents corporation that disap-
pears in 1911, and two streaks of rust
and a right Of way.
Huntington pursues this game of
his by means Of bills introduced into
congress from time to time. The en-
tire business Of the house Of represen-
tatives has been blocked by these
measures"