The San Francisco call., 1896-02-24
RESULTS OF FORECLOSURE.

A naive telegram from Washington ap-
peared in Sundays Chronicle concerning
the funding proposition. 1t speaks OF
"new influence" that has arisen in opposi-
tion to funding, and adds:
ga stronger pressure is now being
brought to bear than ever before to have
the Government foreclose on the Pacific
railroads 1t is not part of the scheme,
however, that the Government shall con-
troll and operate the roads. It is nothing
more or less than plan to have the Gov
ernment foreclose, put up the roads at
auction and then buy them in at the mini
mum figure, which Congress will in all
proba bility set. The Vanderbilts are the
ones most generally mentioned as behind
this movement, but it is possible that
still another interest has its eye on having
transcontinental line. A significant
statement was made by ex-Congressman
Coombs of Brooklyn, representing pow
erful syndicate, when before the House
Committee on Pacific Roads. He was q
stanch advocate OF the plan to foreclose on
the Pacific roads, but was strongly opposed
to the idea of Government control. He
made a careful canvass of the situation he
said, and had been assured that in the
event the Government did foreclose on the
Pacific roads and put them up at auction
the sum of $12o 100000 would be offered for
the Union Pacific or Central Pacific alone.
He said that he could give no estimate ex-
cept on the system as whole"
Our contemporary editorially sheds light
on the subject. After intimating that a
gigantic conspiracy has been formed to de-
feat reminding, place low valuation on
the debtor roads and turn over the prop
erty to the Goulds and Vanderbilts, thus
robbing the Government of large amount
of money when it might recover the entire
debt under the refunding scheme, it
charges that "the opponents of refunding
are playing a very raw game 1t asserts:
'They declare through their chosen mouth
pieces that the scheme to despoll the Gov
ernment is solely in the interest of Van
derbilt and Gould. We do not believe this,
but if they are right the situation is not
bettered. Gould and Vanderbilt are no
more entitled to rob the people of the
United States than other persons with pre-
datory inclinations, and to argue that they
should be permitted to do so, as the anti
refunders are doing, indicates a serious in
W UClWccII 14RAl anu
wrong, or a slavish desire to please men as
well able and willing TO pay for attentions
and services as the Vanderbilts and Goulds
notoriously are"
Whether or not that intelligent, patriotic
and overwhelming sentiment in California
which opposes refunding is willing cheer
fully TO submit to these charges is a matter
that must rest between our contemporary
and it's readers. THE CALL is positive that
no conspiracy exists between the anti
funding sentiment of California and the
Goulds and Vanderbilts to rob the United
States. On the contrary, the advent of q
prospective purchaser for the aided roads
at a price which will cover the Govern
ment's rights, with the further prospect OF
the Governments ability to recover from
the private estates of the owners any deficit
that may be represented by minimum
price," offers the only reasonable hope for
recovery of the entire debt. 1t is diff
cult to imagine an intelligent Californian
who believes that refunding would secure
that end. Sale at foreclosure to antagonis-
tic interests would effectually cure the
present evil of impairing the value of the
Governments security by diversion of
traffic from the aided lines, and would give
California what it needs above all things
else, direct overland railway competition.
Remove from the Central Pacific the bur-
den of diversion and impairment under
which it now suffers and it would be far
more productive property than 1T is. As
part of a line reaching to the Atlantic it
would be more valuable still. Best of all,
its independent ownership and competitive
operation would be the making of San
Francisco, wniIe refunding, for which our
contemporary argues, would perpetua.e
the present monopoly and the evils which
prohibit the progress of the State.