The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-01-09
A DELUsIVE SERENE.

1t seems to be taken for granted that
funding scheme providing fer gradual
repayment by the aided railroads of the
debt which they owe the Government will
accomplish its purpose. The fact that the
railroads themselves desire such a meas
ure is curious and significant thing. 1t
must be taken either to mean that the
companies all along have been earning
sufficient to have extinguished the debt,
or that, if they have not, they wish US to
believe that they can raise their tariffs suf-
ficiently to produce the increased revenue
required.
If the first of these views be accepted,
then a funding bill would be a condone-
ment and perpetuation of a swindle; for
if the companies have earned the money
and have withheld its use in the payne Mt
of an honest debt they have robbed the
Government. In that case they would
deserve no consideration whatever, and
the roads themse and their accumu-
lated earnings, held by their owners as
private property, can be recovered if there
is any justice in the laws and courts of
this country.
If the other view be accepted, that the
companies have not earned sufficient to
pay the debt and will be compelled TO in
crease their revenues by raising their
tariffs, the question arises, To what extent
can they raise their charges without de-
stroying their traffic and thus making the
payment of their debt impossible and to
what extent have they the power to raise
their charges at all? An assumption that
they can raise them must mean that they
have the power as monopolies to do so, for
the announcement of such power means
the absence of competition. Therefore a
funding scheme which contempiates a
raising OF tariffs is provision for encour-
aging and perpetuating monopoly. This
Is Infamous on its face.
The Southern Pacific Company, in it's
recent announcement of an intention to
advance its east-bound freight charges,
has proclaimed that It is just such a
monopoly and has the power in the abb
sence of competition to make such an
advance at will. Those who may regard
this as evidence of that company's ability
and intention to pay it's Government debt
by raising its rates in the exercise of its
power as monopoly evidently deem the
payment of the debt a more important
matter than the effect which such q raise
would have in retarding the development
OF the country and preventing the pros
perity of the people. 1t is worth while
further to consider the policy of fostering
power which experience has shown to be
so dangerous.
But suppose that this power to raise
rates to a point sufficient to cover the
amounts which must be paid TO the Gov
eminent under the terms of funding bill
does not really exist. In that event (if the
companies have not been withholding
earnings that the Government should have
received) it would be impossible for the
companies to pay their debt under fund
ing scheme. In order to secure the neces-
sary revenue from an advance of rates
they would have to put the rates above
a point at which the bulk of the traffic
could be handled proftably round the
Horn. Our Traffic Association has pledged
itself TO meet such a contingency. For
that matter such raise would invite the
construction OF new competing overland
railroad. Still further, the Panama Rail-
way might not be willing to serve as a tool
in such a scheme.
In short, q funding bill would be either
the condonement Of a swindle, the perpet-
uation OF e monopoly, the saddling upon
our industries of burden which they
could not bear, or bald and naked sham
which would not secure the payment of
the debt. Those who advocate such a
measure may take their choice among
these four propositions.