The record-union., 1896-01-31
REcoRDUNIoN FRIDAY. JANUARY
to omaha for sso,ooo,ooo. 50 that the

to Omaha for $50, 100000. so that the
Government would put SITS, 100000
into a road which it could parallel for
$4S, 900 OO0
Government ownership is attended
with many complications. Congress
would determine the rates Of transpor-
tation, and it is absurd to suppose that
the people of the United States would
forego the principal and the hereafter
to be accumulated interest on the S11S,-
100000 solely in the interest of the peo-
pie of California There is no party in
Congress in favor of operating the road
by Government ownership. That propo-
sition is impossible of accomplishment.
All the railroads in the United States
oppose it, and their combined influence
cannot be overcome. Whatever of merit
Of demerit that proposition has, it is
impossible of achievement, and may
therefore be dismissed from further
consideration.
The third remaining proposition is to
make these roads pay by extending the
time for the payment of their mort
gage.
Extension of time does not discharge
the mortgage. If these roads should
default on their payments in any year,
according to the terms of the bill maxi
ing the extension, the Government
would have a right to foreclose at once.
We see no better way than for a bill to
be carefully drawn in such a way that
an amount each year must be paid on
the principal, and interest at a low rate
to be paid on all of the balance of un-
paid Indebtedness Then have the
r,
upon the first year of default the Gov
ernment would have a right to step in
and foreclose it's claim, and take pos
session of the road and sell the whole
outfit to the highest bidder. The dan
ger of losing the road would force the
Pacific railroad companies now owning
and operating these lines to make their
payments according to the terms of the
bill. This proposition has the merit at
least of bringing the Pacific railroad
companies up to the mark, and forcing
them to repay to the Government the
money they have obtained from that
source.
AS to the rate of transportation being
raised in consequence of the extension,
that is a fallacy. The Central route has
six competitors to which must be added
the ocean. The rates of transportation
have steadily declined. A contempo-
rary has called attention to the fact
that the Thurman Funding Act was
passed in 1878 requiring at the hands
of these Pacific railroads a payment of
from 81 100000 to 81 100000 per an
mum; but Notwithstanding this demand
upon them to reimburse the Govern
ment, the rates of transportation on
these roads declined and have contin-
ued to decline ever since. The fact is,
that if the Pacific railroads had no debt
whatever, and were in the hands of pri-
vate corporations, the rates would con-
tinue to be all the traffic would bear
The danger is that in this shuttle the
railroads viii have the people so divided
that the Governments claim will event
ually be frittered away, sold at auction,
or the Government viii be induced to
take possession of the road; and, as it
would soon become tired of the expert
ment of operating it at loss, would
sell the road at auction.
| BY any other way than an extension
of time for the payment of the debt it
is more than likely that the private rail-
road corporations will get possession
of these roads. The funding bin is
therefore about the best device for
making them pay what they owe, and
this they should be made to do at all
hazards.