The San Francisco call., 1896-01-26

those who are and have been their greatest
enemies.
while of the greatest pecuniary Importance,
and to Mr.. Huntington and his associates OF
no consequence in any other aspect, neverthe-
less transcend all purely moneta consider
tions, for the reason that they touch the
sacred ness and the supremacy of the law, and,
in that way, the honor OF the Government
itself.
With the greatest respect but positively, we
object to any action whatever by Congress, or
its committees, in the matter of the debt of the
Central Pacific Railroad Company as an un-
warranted interference, opposed 20 the spirit
of our institutions, with the due and orderly
administration of the law. The entire ques-
tion is now ripe for judicial action, through
the executive, and, according to all precedent
q nd in harmony with the distribution of pow
ers in the constitution, should be treated ex-
clusively through those branches OF the Gov
ernment. AS the chairman of the present
Committee of the Pacific Railroads of the
House of Representatives has already an
rouneed, If Con gress takes any action in this
matter 1t must act through the virtual exercise
of judicial powers, and this is opposed equal
ly TO the theory of our governmental
system and TO all just practice in the history
OF the United States. To arrive at finding of
fact and q conclusion upon which any enact
ment could be intelligently based Congress
would be compelled to investigate enormous
records and intricate facts which have ac-
cumulated within thirty years, and which, in
proper sense, are even Eow sub Judice, and If
this work be not done under the rules and
principles which govern courts and with iu-
dicial thoroughness and completeness, the
basis for any possible legislation that would
even wear the garb of justice would be want
ing. And this essential process of inyestiga-
tlon would necessitate the decision OF numer-
Gus and complicated legal issues, for the deter
mlnation OF which the judicial department has
been established.
The contracts between the Government and
the Central Pacific Railroad Company are
matters for judicial, and not Congressional in
terpretation. The facts which have transpired
under and in relation 10 these contracts are
obviously within the range of judiciary in
Quiry and decision.
We submit, therefore, that this preliminary
objection TO any proposed legislation ought TO
be controlling. After foreclosure and such
other action as the courts may take, but not
before then, it may be proper, or even neces-
sary, for Congress TO interfere.
But II you do not agree to this preliminary
objection, then the merits of the controversy
are TO be considered.
The proposition TO Congress of the Central
Pacific Railroad Company, personified by Mr..
Huntington, may be condensed as follows:
when this corporation was formed the four
gentlemen, of whom was one, who ultimately
acquired substantially all its stock, were not
worth more than half million. II was a pc
rlod OF civil war and transeontinental rail-
road was needed for military and mail facili-
ties. The patriotism of the people was intense.
The Iour aValled themselves OF the opportunity
and the railroad was constructed TO Promon-
tory. They formed originally parternership,
and afterward corporation, named the
NOUITdCld anu flIldpcc COnDdnN,Wllcn was Su G.
ceeded, for other enterprises, by the Western
Development Company and the Pacific I'M
provement Company, and all these corpora
tions, directed by the same men, dealt with
each other The upshot OF the business was
that, largely out OF the securities which the
Government and other bondholders nomlnally
held while the management was vested in
their debtor, and by y1nnumerable transfers and
conversions of the property and income of the
Central Pacific, the Southern Pacific Railroad,
10 which the business of the original corpors-
TyaG tod mi gc5h fla
California and Oregon Railroad, and numerous
other local lines, were constructed and &C
qulred. and the four gentlemen referred TO.
and their heirs and devisees, have accumulated
property to the value of al least hundred and
fifty millions.
Now, through these proceedings, the chief
assets of the Central Pacific have passed TO
other companies and to private ownership.
That corporation, in its present condition, is
unable TO provide for or pay its debts. l. C. P.
Huntington, the survivor of the four and
representing the Central Pacific Railroad
Company, which Will cease to exist in 1911,
ask you, the Congress of the United States TO
refund Its Indebtedness for one hundred years,
to esta bllsh two per centum per annum as the
rate OF interest and TO ratify and confirm all
the transfers and conversions to which have
alluded, TO forego every legal remedy the Gov
power 70 collect as much of the refunded debt
as !. or my successors, may choose to pay,
primarily; from the producers of the Pacific
Coast, ana, seeondsrily, from the people of
the United States.
This, in fairness and justice, is the substance
OF the proposal Mr.. Huntington makes to Con-
gress, thus invoking the legislative arm of the
Government to thwart and paralyze the ex-
eeutiYe and Judiciary, and, speaking OF him in
his representative well as his personal ca
pacity, TO intrench him and his accum ula tions
with fortihcations that would DEFY the consti-
tuition and the laws and every principle of
justice and OF right.
The mere fact that such monstrous demand
can be boldly and even defantlY made is such
q commentary upon the times as no words
could emphasize. If the public response
though filtered through conventions OF solid
and dellberatlye character, is thick with in
and sometimes eouched in language
direct and severe, it is nc ground for
surprise and scarcely for criticism. If an
average citizen perjureS himself or commits
larceny or embeZzlement, he is tried and pun
lshed and there is no application to a legis-
latiye body to condone his crime or 10 oblit-
crate the facts he has created. Under a
government, resting upon law
and order, depending upon equality OF right
among free citizens, and supposed to be
quickly and effectively moved by the enlight-
ened opinions of an educated constituency, it
would be indeed surprising il the people could
tamely and frigidly accept such false, bound
less and oppressive assumptions ana preteness
as constitute this entire appeal of Mr.. Hunt
lngton and the Central Pacific Railroad Com
pany.
The whole issue about the railroad debts is
now covered by the Cons titution, the Federal
statutes and well established legal principles
The solution OF the question demands only the
1althtul application OF the law to unquestion-
able facts. 1t is the duty of the executive de.
partment of the Government to set the Ju-
dicial Department in motion. The attitude of
our people is that the existing law should and
can determine the controversy and preserve
the rights and interests of the Government
and It's constituents. If the manipulators of
the railroads, in the act of managing the Sc
cur1ty, have wasted, diverted and converted
TO their own use the greater part of its value
then they and the estates of those deceased
are trustees. Let the security be rehabilitated
and the mortgage foreclosed in the same pro-
eeedings, within the broad and well-defned
rules of equity.
The railroads should be treated like other
debtors. Probably your constituents, at least
those among them whose covetousness trans
cends their patriotism, would like to have
their debts refunded by paternal Congress at
z per cent per annum, while the Government
Dorrows money to keep up its reserve fund at
double that rate of interest. Suppose that
proposition was before you, how long would il
stand2 Why should Mr.. Huntington and the
special Interests he represents be favored be-
yond the mass of American citizens? Why
should you be invited TO discriminate for the
benefit OF a railroad corporation against the
entire country in general and the Pacific
States in particular? If to the Southern Pa
elnc Railroad and private fortunes the security
pledged to the Government and the other
Dondholders, or its proceeds TO the amount of
two hundred millions or more, have been
traced, let the deficiency be reached there
and not made up by enforced contributions
from our capital and labor.