Omaha daily bee., 1896-01-19
c%ALIroRNii,s PROTEST..

protest. as formulated by the Committee
Of Fifty, of which Mayor Adolph Sutro
Of San Francisco is the chairman, de-
clarcs, first, that all the visible means
and assets of the Pacific railway com
panies have been ~wrongfully appropri-
ated TO their own use by the original
stockholders and managers, and if any
OF the proposed legislation shall he en-
acted the companies will have no means
from which to pay the debt except their
capacity to earn money by transporta-
ton. "Thc freights they carry east
ward consist of the products of our soil
seeking n market abroad in competition
with like commodities produced else
where and we have to pay for trans
porting them to the general markets of
the world, where we meet our com
p%etitors. The freights carried west
ward arc eastern or European products
purchased for consumption by the peo-
pie tributary to the Pacific roads. on
these also we have TO pay the freight
as an addition to the price of the goods.
Hence, barring the Insignificant items
Of westbound pleasure travel and local
traffic of Nevada. Utah, Wyoming and
Nebraska, the bulk of the burden will
fall on the people of the Pacific coast.
This means their accumulated debt of
the past thirty years, including defaulted
interest for the whole period during
which payment may be deferred. The
debt of the Central Pacific railroad alone
amounts at maturity to over $1,000
900: that of the Union Pacific is about
the same amount. To extend these
debts for fifty years at . per cent per
annum is to double their amount, and
to leave them to be paid out of future
transportation charges is to saddle
some 3 00.O00.00O of debts upon us and
our children for two generations to
come. No conquered Roman province
was ever so %grievously taxed Second.
the California protest declares that "the
plain, speedy and adequate remedy for
the recovery of the money due the
United States by these companies, that
which any business man would adopt
in like circumstances. is foreclosure of
''N ''c's ohN IL a. htlltltllCN dIlSt.
an action against the parties who have
despoiled the properties and their heirs
so far as they have left assets. The
only reason assigned to the contrary is
that there is a first mortgage on the
property which will swallow up all the
proceeds of the sale, but the priority of
his so-called first mortgage ' on the
Central Pacific road is challenged, on
the strength of facts impossible to deny.
and not easy, if possible, within the
line of adjudged cases, to answer. The
amount is $27, 500 $50, too large a sum
to be deemed insignificant or to be sur
rendered without n struggle. The
Union Pacific mortgage is perhaps in Il
similar predicament. Here, therefore.
is n lien of from $27, 900, 600 to $GO, OOO,-
600 which every one of the various re-
funding n extension schemes so far
advanced proposes to abandon gratis,
and without even an inquiry as to the
rights or equities involved. The Thur
man act distinctly challenges the prior
ity of these so-called first mortgage |
bonds in its recital that they are, if
lawfully issued and disposed of, a prior |
lien to that of the government subsidy.
But how if they We're not lawfully is
sued or disposed Of? Plainly in such
case they have no priority. Now on
their face they evidently do not con-
form to The requirements of the act of
1864, and so We're not lawfully issued.
And as to the disposal of them the re-
port of the railway commission shows
that they We're paid out by the directors
of the company to themselves, under
the hin disguise of a construc-
ton company, of which they owned all
the stock, and hence We're not lawfully |
disposed of. Surely this question of
law, involving nearly S%2S,00O,OOO, is
worth the consideration of a court"
Third, that "these %refunding schemes
all proceed on the presumption that the
government is without remedy against
the guilty parties for these m%isappro-
priated millions, although no one of
the private suits brought against them
on similar grounds has failed to secure
II settlement satisfactory to the plain
~ bd tiiiou iithaSSis ait tiSli |
partisans should favor an abandonment
of these claims Is easily understOod;
that it should be advocated by the sur
viving partner of the firm that did the
wrong and secured the fruits of it is
also natural enough; but that legisla-
looking only at public interest
even entertain such a proposition
before all means of collection nave been
exhausted passes comprehension"
Fourth, that "these railroad corpora
tons are not In TACT so destitute of
to pay as is represented; on the
contrary, they have valid claims of
amounts against persons possessed
Of great wealth, sufficient to materially
the amount of the debts. and,
added to the sinking fund in the
treasury, perhaps to eXtinguish the prin-
cipal of them. The Central Pacific
company, for example, has a perfectly
valid claim against its guilty directors