The record-union., 1896-12-30
Speaking Of the funding bill, which
was so clearly and in detail explained

in these columns a few days ago, the
Los Angeles Express" concludes:
The best method of procedure to OBJ
tain or secure the Indebtedness is pure
ly a business question. Foreclosure
would undoubtedly involve a large loss
to the Government. Extension with
ample additional security to all that al
ready held would insure the final pay
ment in full of the debt. The interests
of the Government lie in the direction
of obtaining from the debtor companies
the full amount of the money due, and
as is frequently the case with other
debtors, the probabilities lie rather in
the direction of extension than Of i'm
mediate foreclosure.
This is the common sense and bust
ness view of the matter and it's sound
ness there is no gainsaying. The Eek
press" then proceeds to consider the
claim that the sale of the roads or their
taking by the Government would tend
to improve industrial conditions in Cali
fornia by reducing transcontinental
freight rates and shows that there is no
warrant for that assumption, or for the
claim that it would be possible to do
as the radical and impractical railroad
enemies insist shall be done. The Eek
press suggests that change of owner
ship will not likely change methods,
and that roads must adjust their rates
with each other so as to afford fair liv-
ing to each.
Our contemporary adds some other
considera tons. namely:
California productions come into
strong competition at the East with
Eastern productions. Very cheap freight
rates bring OUT fruit and vegeta bles into
the Eastern markets right under the
noses of the farmers and producers
there. There Is no very great desire in
the East to assist California in further
cheapening the rival products of Cali
fornia. There are many people on this
coast who think 1t would be greatly to
the interest Of California to weaken the
transcontinental lines. The most COR
rect idea is that our interests would be
best secured If all the transcontinental
lines were strong enough to carry out
their plans without embarrassment
They are more likely to be able to give
good service and at reasonable rates.
The theory Is held by a good many
people, not only in California but in
other parts of the country, that the
present would afford an excellent op-
portunity for the Government to buy
in the Union and Central Pacific Rail-
roads and run them on Government ac-
count, as great trunk line. Such
plan would hardly be practicable, how
ever, unless the Government conducted
all the transcontinental roads; because
in order to make freight rates low
enough to be Of special value to the CAL
ifornfa producers they would have to be
put so low that they would seriously in
Jure the business and property of ali
other tranScontinental lines. Partial
Government ownership could not pos
sibly work well. 1t would have to be
exclusive. like it now has the handling
Of the mails, to avoid making it operate
as a great injury to individuals and in
terests now engaged in the railroad
business, other than those known as the
Pacific roads.
Stripped Of all but purely business
considerations, the extension of time on
some plan, such as that embodied in the
funding bill or some other as against
and dangers of Government ownership,
SCENE to be the most reasonable plan.
mic CT Pow Dar,i -;N