The true Democrat. [volume] (Bayou Sara [La.]) 1892-1928, 1896-10-17
HUNTlNGTON'S SCHEME.
Wants the Government to Wait 100
Years Longer.

Want. the Government : to Wait 100
Years Lopger.
The case of the Central Pacific rail-:
road is one that justities the govern
nent control Of railroads. The rela-
ton of the Central Pacific and the
government is thus stated by the
Twentieth Century:
THE Central Pacific, railroad COM
pany is bankrupt Its immense in
qqebtedness includes a, round sS0.OOO,-
900 to the United States government.
This sum represents principal and in
terest of 6 pier cent bonds. payable in
thirty years from date, issued by the
! government to the builders Of the Cen
trail Pacific road at different times be-
tween 1865 and 1872. The original
! sum total of them all aggregated about
| S2S,OOO,OO0. The first of these bonds
! became payable in January. 1895, and
the interest during all those years, not
compounded. came to 1870 per cent Of
the face value of the bonds. The re-
naming bonds fall due at intervals IN
! til 1902. Now, the sole survivor Of he
TOUR men who built the road is c. p.
Huntington. and he is responsible FOR
the bills that turn up 50 persisteatly
in congress.
n -SCn n
decree that the railroad be granted
100 years longer in which to pay this
| debt. Interest he says should be per
cent, and the United States govern
ment should become responsible for
both principal and interest CT these
new 100 year bonds. The bonds now
existing are to pc cancelled when the
new bonds make their appearance, and
the railroad itself shall be freed from
its present Indebtedness altogether.
The railroad proposes to pay principal
| and interest OF the new bonds in in
stallments, the last one falling due in
1897.
That is a very interesting scheme.
If it succeeds Mr.. Huntington VIII he
the most famous money maker that
ever lived. For these reasons:
The Central Pacific railroad exists
under California laws. It is not in
corporated under the national govern
ment. It's charter expires in 1911
Its affairs must be wound up then
Should it pay its debts it may rein
corporate. II not, it goes into :e-
ceiver's hands. Under the laws of
California the four estates of Messrs
Huntington. Stanford, Croker and
Hopkins 0he men who pushed the
road through are liable for the n
debtedness. But when the govern
ment sued the Stanford estate, Mr.
Cleveland's attorney general failed tc
carry the case to the courts on its
merits, and lost before the supreme
court of the United States. No ius-
tice changed his mind on this occs-
sion. The corporation disappears in
1911. Suppose the government .ool;
possession of the road. 1t would gel
two streaks of rust ana right OF
way" Huntingtons scheme, defea,ef
in the last democratic congress- and
revived in the last republican one
grants him immunity from all liabil.
ity. Uncle Sam hands over his secu.
ity to Huntington, who gives him back
a valise. Uncle Sans security repre-.
sents $65,000,0OO, plus $75,0OO,OO pr:n.
cipal and interest respectively on tho
entire Pacific debt, plus $50 900 900 0;
sinking fund, plus millions more fol
costs and interest. 'Huntington's valise
represents a corporation that disap.
pears in 1911. and two streaks of RUS
and a right Of way.
Huntington pursues this game Of
his by means of bills introduced into
congress from time to time. The en-.
! tire business of the house of represen.
tatives has been blocked by these
measures"