The San Francisco call., 1896-02-12
Should Be Scorned by the Gov.
ernment of the United
States.
A SOVEREIGN AND CREDITOR.
There Seems to Be but One Course
Left to Congress, and That Is to
Foreclose.

The railroad company has expended be-
tween $4,0OO,0OO and $5,000,000 in an off
hand manner, and without the slightest
showing OF voucher from the employees.
VINO spent the money in State and Federal
legislation epochs in behalf of the Central
and Southern Pacific railroad companies.
When Congress appointed its Committee
on Pacific and Aided Roads in 1886 its in
tention was to look up just such lax
methods of business which threatened the
interests of the United States Government
In the claims it held against the roads.
Commissioner Pattison, who was chair
man OF the committee, after careful in
vestlgation made report of the doings of
the railroad magnates at the head of the
Central and Southern roads which should
preclude any extension of an indebted
ness.
1t IS commonly understood on the
Pacific Coast that the 10000 copies of the
Pattison report printed at the expense of
the Government have disappeared from
the shelves of the public and private
libraries of the United States. That thew
have been bought up by the Huntington
factions IS no longer question. Still a
few volumes are left in the hands of the
State Library and Mayor Sutro, from
which THE CALL has been able to get ex-
tracts from time to time.
These excerpts have already pointed
out many of the misdeeds of the Southern
Pacific and the Central Pacific in respect
to their violation of confidence with the
State of California and the United States,
but as yet the pithy portion of the Patti
son report has noe been given. 1t is as a
conclusion OF the voluminous report to
President Cleveland to be transmitted to
Congress that it says:
What should the Government do? mere
money recovery is the least of benefits it should
consider in deciding upon its course Of action
10 redeem these roads from the perverted uses
TO 70 which they have been applied in order that
the beneticent public purpose Congress had IN
view. IN. their creation may be realized is
consideration OF infinitely greater Importance
10 the people than repayment of number of
dollars and cents into the. treasury. The Gov
eminent can well afford to lose portion of
this Indebtedness if this object can be accom-
PIlshed Every consideration of public policy,
the enforcement of law, the supremacy and
dignity of the Government. demand treat
ment of this subject far above and beyond any
mere attempt TO collect public debt.
The Government occupies dual relation to
the bond-aided railroads-as sovereign and as
creditor. In this aspect the question of settle
ment uniolds complications that would not
present themselves in the ordinary relation OF
creditor and debtor mere creditor might
assent to compromise, which, in q sovereign
dealing with dishonest creditor who has vio-
nant to public policy. 1t cannot afford to CON
done fraud, to validate the iniquitous work of
the credit Moblher, the Contract and Finance
Company and similar organizations, or to ig-
more the unlawful and outrageous discrimina-
uons and extortionate charges and the crimi-
nal conspiraces for controlling trade which
have characterized the administration of these
railroads since the date of their completion
Inere is only one course open to Congress
and that Is the Immediate winding up OF the
aHalrs OF all the comDanies, enabling the Gov
ernment to withdraw at once from all connec-
ton with the running of railroads. or sharing
IN the profits OF their management. There
ought TO be an end to the partnership between
the Government and the Pacific railroads: q
speedy and absolute divorce
The only method by which this result can
be reached is that which was suggested bv
Justice Hunt in the Credit Mobilier cases. 1t is
the alternative pointed out by the Wilson COM
mlttee OF Congress in the event of the failure
OF the equity proceedings in the United States
courts. 1t is the course that Congress directed
the Attorney-General by resolution of April 10,
1869, to take against the Union Pacific thai IS
the forfeiture of the charter.