The San Francisco call., 1896-01-10
A STRONG MEMORIAL.

The memorial addressed to Congress by
the Committee of Fifty makes the follow
ing main points: That the earnings of
the aided lines which might have been
applied to the Government debt were
wrongfully and dishonesty withheld and
diverted and that funding of the debt by
Congress would be condoning of that
act; that an extension OF the debt at
rate of per cent would require the pay
ment by the aided companies of about
100000 in fifty years; that increased
charges for transportation would have to
be made, and that this would fall princi-
pally upon the industries of California;
that the plain, speedy and rational solu-
ton of the matter would be the foreclosure
of the Governments mortgage and the en-
forcement of the lien on the private assets
Of the surviving partner in the case of the
Central Pacific if it should be found that
the estates of the deceased members can
not be reached; that the frst-mortgage
bonds were not issued according to law
and, hence, that the first mortgage does
not take priority over the Governments
mortgage; that among the assets which
would be affected by proceedings in fore
closure is the Southern Pacific Railroad
south of Gilroy and Alcalde, because it
was built on the credit and with the earn
ings of the Central Pacific Railroad, such
earnings being diverted from their proper
use distinguishing the Government debt; !;
that, under all these circumstances, the
passage of funding act would stultify the
Government, condone Illegal and dishonest
acts of wide potorietv and bring shame
upon the Congress- of the United States.
The memorial contains no trace either Of
bitterness or spirit of injustice. 1t is an
earnest demand for an intel eIligent handling
OF great problem affecting the destiny OF
the country and plea to the Govern
ment to save California from the ruin
which funding measure would bring.
Perhaps it is knowledge that the case
which the opponents of the funding bill
are ready to make out is incontrovertible
that has decided the Senate and House
Committees on Railroads to shut out ar
guments before them when the bills are
taken up. That need not prove dismay-
ing, for the great battle will be fought on
the floor of the houses when the bills come
UP for passage.
In the arguments there to be made the
proponents of the bill should be forced to
show that it will be possible for the COM
panles to pay the principal and accruing
interest in fifty years. This has suddenly
become one of the most important features
OF the matter. The ocean Is free; there
can never be a monopoly of the Cape Horn
route. Such an advance of rates as will be
necessary to raise the required revenue
would leave so large a margin of profit for
ships sent round the Horn that we may be
sure they would be put on without delay,
ana so prevent the raising of the required
funds.
For that matter, the Panama Railway is
not owned by Mr.. Huntington, and it will
never submit to such a raising of tariffs as
will build up the Cape Horn traffic at the
expense of the isthmian line. Let the
supporters of the measure show that the
rates can be advanced sufficiently without
destroying the money-earning capacity of
the roads and the issue VIII then be