Montpelier examiner. [volume] (Montpelier, Idaho) 1895-1937, 1896-10-09
HUNTlNoToN's SCHEME.
Wants the Government to Walt Ice
Years Longer.

Years Longer.
The case of the Central Pacific ra.;-
road is one that iustifies the govern
pent control of railroads. The rela-
lion of the Central Pacific and tho
government is thus stated by the
Twentieth Century:
The Central Pacific railroad com
pany Is bankrupt. Its immense in
ueptedness includes a round $50. 000,-
po0 to the United States government
Ihls sum represents principal and in
terest of 6 per cent bonds. PAYABLE il,
thlrty years from date, issued by the
government to the builders of the Cen
! tral Pacific road at different times be-
tween 1865 and 1872. The original
sum total of them all aggregated about
$ZS,0OO,O00. The first of these bonds
became payable in January, 1895, and
the interest during all those years. not
. compounded, came to 1870 per cent of
, the race value of the bonds. The re-
, naming bonds fall due at intervals un-
I'll 1907. Now, the sole survivor Of lie
-FOUR mel 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 he granted
wv vears longer in which to pay This
HeDt' 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
ds present Indebtedness altogether
The railroad proposes to pay principal
ana 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. Itsis not in
corporated under the national govern
ment. Its charter expires in 1911
its affairs must be wound IN tben
Should 1t pay its debts it NAV rein
corporate If not, it goes into a re-
ceiyer's hands. Under the laws of
California the four estates of Messrs.
HI ntington, Stanford, Croker and
Hopkins (the men who pushed tho
road through are liable for the in
de0tedness. But when the govern
ment sued the Stanford estate Mr.
Cleveland's attorney general failed tn
carry the case to the courts nm its
merits, and lost before the snprama
court of the. United States. No ms
tic3 changed his mind on this occa-
sion. The corporation disappears IN
1911. Suppose the government took
possession of the road. 1t would got
Two streaks OF rust and a right of
way" Huntington's scheme, defeated
in tie last democratic congress AMI
revived in the last republican ona
grants him immunity from all liabiIz
ity. Uncle Sam hands over his secur
lty to Huntington, who gives him hack
yaiise Uncle Sans security renra-
seLts $65,000,000, plus SIS, 900 arin4
cipal and interest respectively on tho
entire Pacific debt, plus 500 900 900 OF
sinking fund, plus millions more for
costs and interest. Huntington's yalise
represents corporation that disau-
pears i'll 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
rae asures.'