The record-union., 1896-12-27

Government ownership has been sug-
gested as a remedy in procedure. Is it
worth while to discuss a proposition so
opposed to American policy and not re-
ceiving the slightest encouragement at
the East? VIII the Government ever
of a single section of the country? The
Government cannot hope to discharge
the first mortgage lien of sos, 600 900
and add it to the investment represented
by the debt due to it from the roads,
with any expectation of earning by the
operation of the railroads, even low
rate of interest on the gross sum, much
less creating a sinking fund for the re-
payment of the principal invested in
these roads.
For the Government to take and op-
crate the roads means simply to forgive
the debts absolutely, and clap S5S, ,OOO,-
COO more of good money into the lines,
operate them at the expense of all the
people of the United States for the sole
benefit of the commerce of Utah, Ne
vada and California. 1t is simply an
absurd and impracticable scheme.
Funding the debt is the only remain
ing remedy proposed or in contempla-
ton in any quarter. What is the fund
ing bill? 1T is a proposition proceeding
on the wise assumption that the duty of
the Government is to collect what is due
to it. To use practicable, reasonable
and businesslike methods of collection.
Now the Government has not paid the
the interest thereon. All the bonds
that matured before January, 1896,
have been taken care of by the sinking
fund. accumulations from payments
made by the roads. But after January
1st the remainder of the Indebtedness
must be taken care of by the Govern
ment because it has guaranteed the
payment of the bonds
Now, then, shall the Government
give the debtors time in which to pay
their obligations, or shall it incur a loss
of SSO, 600, 900 or SOC, 100000 by forced
collection? Tt would seem that to the
practical business mind, to the judg-
ment moved on by the dictates of COM
mon prudence, there can present but
one answer, namely, that extension or
and judicious policy in the premises. to
protect the Government against loss.
Foreclosure and sale means great loss.
1t means additional subsidy to benef1-
Charles to whom the Government is not
asked to present anything. Govern
ment ownership Is absurd, impractical
BILE and impossible in any such case as
this, at least.
The question then remains, Shall the
railroad companies be permitted to dis
count the claims of the Government, or
shall There be granted further time by
which the second mortgagor may hope
to recover the full face of its claim? The
interests of the people of the Pacific
Coast clearly lie with the funding prop
osi+ion and at the lowest rate Of in
terest. for the smaller the annual in
stallments to be paid by the roads the
less the annual charge for transporta-
ftion of the commerce of the coast. Rea-
sonably expecting augmentation Of the
volume of traffic as the country fills up,
and trade grows in Importance and vol
une. future generations will justly bear
a share of the burden or debt created
as much in their interest as in any, and
that cannot now by any possible means
be recovered.
Concerning the low rate OF interest re-
ferred to, it is to be borne in mind that
of the debt due S107 100000 is for in
terest accumulated practically at 1O per
cent. per annun on the amount made
available in the construction of the
roads by the sale of the bonds at
fearful shave. At any time since loio
the Government could have called in
the bonds and have refunded them at
from 3 to ) per cent. As Mr.. Mills well
saws. there is therefore a false or fic-
titious factor in the amount of the
claim Of the Government, since in
equity there is at least 80 per cent. Of
the claim that has no basis.
1t is not Il 9cessary to refer in this re-
view to the benefits accruing to the
Government from the construction OF
rhe Pacific Railroads. nor how incon-
, ceivably in excess Of any sum involved
the common country has profted in
CONSEQUENCE. regardless of the debt due
Mr.. Mills has strongly pointed out in a
few terse sentences all these consider
ations in the paper on the subject which
we on Friday published in full, and to
! which attention is again invited. Ii
any of our readers have not perused II
as vet. they should do SO now. The inn
portant questions Of the railroad in
debtedness and the funding bill have
not before been more clearly and never
so concisaly presented or made so com
prehensible
ROCKS AS HOLIDAY GIFTS.