The record-union., 1896-12-25

would necessarily be some railroad com
bination operating an extensive net
work of branch lines in the Eastern
States. The only object such railroad
corporation could have in acquiring the
ownership and control of a trunk line
to the Pacific Ocean would be primarily
the benefit to accrue to the country
served by it's network Of branch lines.
consolidation of railroad interests un-
der these circumstances would suboTdi-
nate the trunk lines serving the Pacific
Coast to the interest of the main and
branch lines of the Eastern railroad
acquiring their ownership The trans
fer of the control and management of
the main trunk line serving the Pacific
Coast commerce to a syndicate, or any
Eastern system of railroads. promises
no advantage to the commerce of the
Pacific Coast.
1t is not, however, admitted for a mo-
ment that there is the slightest proba-
bility that an Eastern railroad system
would be the successful bidder ait any
sele of the Governments claim, or that
the requirement of the trunk lines on
the Pacific Coast would be any special
advantage to am Eastern railroad syS-
TEN in the face of the fact that the en-
tire network of branch and connecting
lines from the Missouri River to San
Jose would be in hostile hands.
GOVERNMENT OWNERSHIP
1t is scarcely profitable to discuss for
a moment the question Of the Govern
ment ownership and operation of the
Pacific railroads. No such policy is con-
templated by the Congress of the United
States. The proposition has not re-
Ceived the slightest encouragement at
the hands of the Eastern press, or ia
vorable consideration in Eastern opin-
ion. 1T is proposition to operate a road
by the Government of the United States
in the interest of single section of the
country There is a broad dominant
sentiment adverse to this form of pa
ternalism in Government.
The Government cannot hope to dis
charge the first mortgage, thus adding
sos 600, 900 to the investment it has al
ready made in the Pacific railroads, and
then operate a line encountered by
S1S0,000, 900 of debt with any hope or
expectation of earning even a low rate
of interest, much less creating a sinking
fund which would restore to the treas
ury the vast sum of money invested in
these roads. Government ownership
and control simply meaps that the Gov
ernnealt shall forgive the claim it al
ready has against these roads and in
vest S.JS, ,000, 900 more in them, and then
operate them at the expense of all the
rest of the people of the United States
for the benefit Of the commerce of Utah,
Nevada and California, States contain
irg a population of less than 2,OO0,O00
inhabitants. The proposition is more
than impracticable. 1t is impossible. 1t
is, therefore, dismissed without other
consideration than to say that Govern
ment ownership and control Of the road
IN the interest Of the commerce of this
coast at cheap rates is very seductive.
and the hope and expectation that such
a contamination will be reached has
misled and distorted public opinion in
the State of California on the question
of the extension Of the time for the pay
ment of the Pacific railroad debts. Any
proposition looking to the Government
ownership and operation Of the roads,
however popular in the States named,
has no supporting sentiment outside of
them.
THE FUNDING BILL.
The uestion arises, what is the fund
ing bill? What policy is outlined by its
provisions?
1t is the first duty Of the representa-
tives of the people of the United States
to collect any debt which may be due
the Government, and to adopt such
means for its collection as may be rea-
sonable and practicable. The Govern
me Mt Of the United States has not paid
the bonds issued to the Pacific rail-
roads 1t has however, paid the inter
est semi annually as 1T has accrued.
That the reader may be fully furnished
with all the facts bearing on this ques-
tion, the statement Of the date of the
of the United States subsidy
bends will be here given.
In the report Of the United States
Commissioner Of Railroads for 1895
pages 30 and 211, the following will
be found:
DATES OF MATURITY OF UNITED
STATES SUBSIDY BONDS.
Union Pacific
eb. l. lS6 .........-...... s.. 800 600
Ian 1897 IN 900