Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1896-05-21
IAN OBJECT LESSON"
REPUBLICAN PAPER MAKES A
FEW SUGGESTIONS.
Not Surprised That COxey Bills Find
Favor When Corporations Secure Loans
From tho Govornmsnt-Tho Ray on
Some Corrupt Deals.

Dispatches from Washington am
nounce that "the Pacific railroads com.
mittee of the two houses of congress
will in few days report bills grant
ing an extension of fifty years to the
Central and Union Pacific roads; the
payments for the first ten years to be
$365,00O per year; for the second ten
years, 100000 per year, and there
after, $75O,O0O per year, until the debt
is paid. The principal and interest is
to be refunded at per cent interest ia
be paid by the roads to the government.
The roads are to have credit for the
amounts in the sinking fund and the
bond and interest account in ascer-
tanning the amount due the govern
ment."
An faith here is an "object lesson"
The Central and Union Pacific rail-
roads owe this government large sums
Of money and their debt is due, secured
| by bonds or mortgages on these rail-
road properties.
This government, the people through
their representatives, deliberately pro-
pose to renew this great debt, or Vir-
tually make a loan to these railway
corporations for the amount Of the
principal and interest due, for a term OF
fifty years at per cent interest per
annum, requiring payments each year
as stated above.
Now, we do not particularly object to
the rate Of interest charged or terms
Of payment agreed to but simply sug-
gest that this transaction might be
taken as an object lessqR by the people.
There are those who might ask why
others besides great railway corpora
lions cannot secure loans from the gov
eminent upon similar terms.
1t Is quite probable that when the
people look at this transaction they
may be led to think that 1t is no won
der that Mr.. Coxey and others are ad-
vocating very similar financial schemes
in the interest Of the general public
instead of solely for the benefit of rail-
way corporations.
In the case mentioned above the gov
eminent takes the bonds Of the railway
corporations and extends the payment
of debts due for term Of fifty years at
per cent interest, payable in install
ments as noted.
Mr.. Coxey proposes that county, mu-
nicipal and other public corporations
issue bonds and that the government
issue, OF loan, to said corporations
money at a cost, or interest of l per
cent, and that those corporations pay a
certain amount Of their obligations to
the government each year, cancelling
the entire debt in twenty-five years.
The railroads by their agreement have
fifty years time to pay what they bor-
row, paying certain fixed amounts each
year for the first ten years, other fixed
amounts for the second. and for the
third and other ten year periods.
While there is some little difference
between the two plans, yet they have
certain features in common and just as
long as the people, through their rep
resentatiVes, continue to make such
contracts with certain private corpora
lions no one need wonder that the peo-
pie listen to and indorse such PROPOSE
lions as Mr.. Coxey advocates.
The debt due the government from
the roads named was created by d.
rect loan of the governments credit to
the private corporations the same as
Coxey asks for loan Of the govern
ment's credit for public corporations.
These private corporations defaulted
in their payments and instead of being
brought into court and forced to pay,
or their securities sold to the highest
bidder, as in the case with individuals
and the debts they chance to owe, re-
newals are given as noted above
Evening Press, Carthage, Mo. (Rep)