The record-union., 1896-01-31
WHAT SHALL BE DONE !?
Propositions for Settling the Railroad
Indebtedness
Comments Upon the Different Plans
Now Before Congress and
the People.
From the Placer Argus.l


There is somewhere a merit or de-
merit underlying the proposition of
funding the railroad debt. A bill for
this purpose has not yet been intro
duced, but the policy of extending the
time for the payment of the debts due
by the Pacific railroads is before the
country, because exigencies have arisen
which force upon the Government the
question of immediate action. The Pa
cific railroads have defaulted in the pay
ment of what they owe the Government
The question confronting the people of
the United States relates to what shall
be done, and this is not a question for
demagogic denunciation, but one of dis
passionate Judgment.
We are about to establish new rela-
tions, or perpetuate old ones. The Pa
cific roads were built for the purpose
Of establishing more intimate CONNER
cial communication between the Pacific
Coast and the Atlantic States. Since
their construction, six other lines have
been constructed, but the Central Pa
cific and Union Pacific still maintain
their position as the principal artery Of
commerce. 1t is especially indispensa-
bic to Placer County and the perishable
fruit interest OF CalltOrnla.
The most reliable data on the subject
of what these roads owe the Govern
ment, or will owe it, is to be obtained
from the report of the Secretary of the
Interior That officer reports to the
President, and his report which was
transmitted to Congress, was that the
total amount to be due on January l,
1896, by the Pacific railroads to the Gov
ernment was Silt 100000 The aggre-
gate amount of the first mortgage rest
ing upon the Central and Union Pacific
is SCI 900 900. These figures are abso-
lutely accurate and are from the best
obtainable data. The SCI 100000 of first
mortgage will take the road and the
second mortgage will have nothing to
rest upon, unless some policy is devised
whereby the Government can recover
what these roads owe it, That they
ought to pay what they owe no man will
deny. That they should have been pre-
pared to pay it at maturity nobody will
deny
Three plans have been proposed The
first was suggested by Senator Thurs
ton of Nebraska, which was to sell the
Governments claim at auction, having
an understanding at the outset that
the claim was not to be sold for less
than forty cents on the dollar; that is
to say, Senator Thurston proposed to
put up the Governments claim at forty
cents on the dollar and if no better bid
than $40 100000 could be obtained, to
knock it down to the bidder who would
offer that sum or anything in excess
of it, Senator Thurston represents a
syndicate of capitalists who want to
get the Governments claim out of the
way. We do not believe the proposition
can be entertained by any honest mem
Der of Congress. We look upon it as a
swindle and a steal
The second proposition is for the
Government to discharge the first
mortgage, clear it out of the way, and
own and operate the road. To do this,
il must add S61, 100000 to $117, ,0O0,-
600, and the Government would then
have invested SITS, 100000. If the $17S,-
100000 invested by the Government
is to bear interest at 2 or 3 per cent,
then the road must earn that interest
and the shippers must pay it. If the
rates charged for transportation are
to include the accumulation Of a sinking
fund to discharge the SITS, 100000, then
the Pacific Coast commerce carried by
the Central Pacific and Union Pacific
is burdened with a debt of SITS, ,0000
It is a notorious fact that at the pres
ent cost of material and labor, the road
can be built from Sacramento to Og-
den for S1S,000,000 and from ogden