Shiner gazette. [volume] (Shiner, Tex.) 1893-current, 1896-10-21
HuNrINoroN's SCHEME.


Years Longer.
The case of the Central Pacific rail-
road is one that justifles the govern
ment control of railroads. The rela-
ton of the Central Pacific and the
government is thus stated by the
Twentieth Century:
1.-THE Central Pacific railroad COM
pany is bankrupt. Its immense iu-
debtedness includes o round $S0,000,-
900 to the United States government.
This sum represents principal and in
terest of per 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
$2S,0O0,000. 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 I'M
til 1902. Now, the sole survivor of the
four men who built the road Is G. P.
Huntington, and he is responsible for
the bills that turn up so persistently
in congress-
Mr.. Huntington wishes congress to
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 OF these
new 100 year bonds. The bonds now
existing are to be cancelled when tho
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 1t succeeds Mr. Huntington will be
the most famous money maker that
ever lived. For these reasons:.
The Central Pacific railroad exists
under California laws. 1t is not in
corporated under the national govern.
ment. Its charter expires in 1911.
It's affairs must be wound up then.
Should it pay its debts it may rein
corporate If not, it goes into a re-
ceiver's hands. Under the laws OF
California the four estates Of Messrs.
Huntington, Stanford, Crocker and
Hopkins (the men who pushed the
road through are liable for the in
debtedness. But when the govern
ment sued the Stanford estate, MIR.
Cleveland's attorney general failed to
carry the case to the courts on its
merits, and lost before the supreme
court of the United States. No JUS
tice changed his mind on this occa-
sion. The corporation disappears in
1911. Suppose the government took
possession of the road. 1t would get
two streaks of rust and a right OF
way" Huntington's scheme, defeated
in the last democratic congress, and
revived in the last republican one,
grants him immunity from all liabil-
ity. Uncle Sam hands over his secur-
ity to Huntington, who gives him back
valise. Uncle Sans security repre-
sents $65,000,O00, plus $4,000, 900 prln,
cipal and interest respectively on the
entire Pacific debt, plus S20,O00,OoO Of
sinking fund, plus millions more fol
costs and interest. Huntington's valisG
represents corporation that disapI
pears in 1911, and two streaks of RUS
and right Of way.
Huntington pursues this game o.
his by means Of bills introduced int
congress from time to time. The en-
tire business Of the house of represen
tatives has been blocked by thes,
measures"