The San Francisco call., 1896-02-17
OPPOSED TO REFUND|NG.
Views of Railroad Commissioner
Stanton on the Central
Pacific Debt.
Explains Why a Long Extension
Means Certain Loss to the
Government.

Railroad Commissioner James Stanton
is strongly opposed to any measure that
will give the Central Pacific Company con-
cessions and advantages In the settlement
of its debts with the Government that
would not be given by a creditor to an or
binary debtor in the general run of COM
merciaI transactions. And he is also op-
posed to any legislation on the subject
that would saddle the indebtedness of the
company on the producers and manufac-
turers of the State of California.
IAN extension of the debt for period
of fifty or hundred years as is proposed, :"
he said, "would be most unbusinesslike
and devoid of sound commercial sense"
Continuing, he said:
Why, in fifty years methods of trans porta-
ton may be entirely changed BY that time
we may be travelling through the air. And we
will, at least, have electric railroads Now
with cheaper, faster and more agreeable meth
DDS OF transportation for both goods and pas
sengers, what would be the value of such
line the Central Pacific Railroad?
The most that should be done is to extend
the payment, if it is extended at all, for
short period, say ten years, at the utmost, and
then only if security is given that is sure to
realize the full amount of the Indebtedness if
foreclosure proceedings should have to be
taken. Instead OF accepting the Central Pa
cifc Railroad only as security let the owners of
the Central Pacific, who are also the stock
holders in the Southern Pacific Company
mortgage such of their other properties as
the Government may require justly in order
to amply protect II. Then, II the Central Pa
ci1c at the end OF the ten years has paid Off q
part of the debt and has shown its intentions
to deal fairly with the United States let an
other extension be made if Congress finds it
advisable TO grant it,
do not believe it would be wise for the Gov
ernment TO obtain the ownership and assume
control of the property. Experiments in vari-
Gus States of the Union have shown that it is
not feasible for the Government to operate
small lines or sections. If there is to be Gov
ernment ownership it should extend to a line
from ocean to ocean, and embrace a complete
system, with ample feeders in all sections
But for such project conditions are not now
at all favorable.
The simple Inability of debtor to pay his
debts should not be any excuse for gran ting
him time. He must show sufficient resources
or security to warrant the creditor in permit
ting him to remain in business, and the Cen.
trail Pacific should be treated in this spirit
They have had long time in which TO prepare
for their obligations, but while the chief stock.
holders have laid up vast fortunes, the road is
virtually bankrupt. Yet its directors have the
effrontery to ask concessions that are abso.
lutely out of reason,
lam afraid, however, that foreclosure would
result in giving the same people the road.
They could afford to pay at least 81 900 600
more than any other company or syndicate,
simply as means of preventing competition.
But believe the Government could recover
the debt by going after the private fortunes of
the different individuals who promoted and
carried on the enterprise.