The San Francisco call., 1896-04-01
THE RAILROAD BILL.

The outline of the funding bill which
| appeared in Yesterdays CALL represents
merely the work of member Of the joint
subcommittee appointed for that pur-
pose after conference of the sub-com-
mittee and an agreement on the terms to
be EN- mbodied in the draft. 1t will have to
be approved by the subcommittee before
| submission to the general joint commit
tee OF both houses. After such approval,
if it is accorded. the bill will go to the re-
spective houses for debate and final action.
This is a tedious road for the bill to travel,
and it is i'm possible at this time to foretell
the result. The situation is further COM
picated by provision that the terms
of the bill shall be accepted by the roads
interested.
The bill therefore is hardly worthy OF
much discussion at this juncture. Still as
it is very different from what has BEEN ex-
pected it may be we'll to point out some Of
its peculiarities. To begin with, it is
much severer in its requirements of the
aided lines than either the Smith or the
Frye bill or than the railroads have ex-
pressed their ability or willingness TO meet.
1t requires, for instance, that during the
first ten years the companies shall pay,
in addition to the interest Of per cent on
the bonds. $500, 900 annually, $500000 an
nually during the succeeding ten years,
and thereafter $780, 900 annually until the
whole debt is extinguished; that these
payments shall be applied to the
extinguishment of existing bonds; that
the Governments lien shall re-
main in force until the debt is
rrh nicba a1 ba ohorf 1ifo
of the companies being extended to cover
the entire period; that at any time, if the
President shall so decide, the outstanding
/ debt shall be taken up by the Government,
the companies to be required in such a
contingency to reimburse the Govern
ment for all costs and losses; that the
Central Pacific may if it choose refund its
outstanding debt at a lower rate of in
terest, under the sanction of the Govern
ment, in order that the amount of the
debt and the time for its extingulshmen mt
may be lessened that in the event of de-
fault for six months in interest or prin-
cipal the President may take possession
of the roads without resort to the courts,
or may employ the courts in his dis
cretion; that the companies shall pay no
dividends until after the current Govern
ment obligations have been Cancelled, and
not then unless they have been earned
and that the Central Pacific shall so modify
its lease to the Southern Pacific as to
make the Southern Pacific guarantor of
the Central Pacific payments provided for
in the bill.
This is rough outline of the salient
features of the measure. 1t has nothing
to commend it. 1t completely sets aside
the principle for which the people have
contended, namely, the power and duty of
the Government to collect the debt by sale
under foreclosure. Viewed in the light OF
simple business transaction the extern
sion of the debt is the introduction of a
dangerous precedent, for which the
country may suffer far beyond the evils
which will clearly result Immediately
from its operation in this particular case.
1t should never be reported to Congress,
for it is iniquitous all through. There is
but one thing to do with IT. Kill it.