The record-union., 1896-08-16


We find that since the decision of the
Supreme Court of the United States in
the Stanford case, and the opinion of
Attorney General Harmon. filed with
the Pacific Railroad Committee, there is
nothing left for the United States, ex-
cept to get it's money from the prop
erty covered by it's mortgage according
to its exact terms, and that the property
is, as shown, disjointed, incomplete, and
incapable alone of carrying on any sue
cessful business
In examining this matter further, we
find the United States practically bank
rupt to-day, in that it's revenues do not
equal it's expenditures, and it is borrow
ing money to pay it's bills, although it's
credit is so good that it can carry on
business indefinitely. Like Barhams
bank, it is running on credit. 1t is in
no condition, however, to borrow money
to pay off first mortgages on railroads
We find the owners of these roads de-
sirous of paying every dollar they owe
the Government, and their other cred
tiers, and having faith in their ability
so to do if given time.
We find the net earnings of each road
to be about $4,O00,O00 per annum and
higher.
We find that 1t would be impolitic for
US to claim all of the net earnings as
applicable to the payment of the debts
as some amount must be left for re-
pairs and emergencies.
We find that the intrinsic value of
these roads does not equal their debts
and that at forced sale they would not
probably pay any but the first mort
gage. We learn that they can be dupli-
Gated at about half their original cost.
What shall be done in view of these
facts? Do we want Government owner
ship of railroads? If so, that is one
way out of the difficulty.
We can forec1ose the Government lien,
pay the $27, ,S53000 of the first mort
gage bonds on the Central Pacific and
S3} ,.I32, 900 on the Union Pacific; total,
SCI $50, 900, and go into active competl-
ton in the railroad business with our
own citizens who are struggling to
maintain other Pacific railroads.
Is this advisable? Is it good business
saeacity? Is it a proper plan for the
United States to pursue? Is it wise for
the nation to purchase the railroads
that traverse it in every direction or
even those across the continent?
AS illustrating one result of Govern
ment ownership of the Central Pacific
Railroad, I call attention to the fact
that this corporation has since its or
ganizatio paid the large sum of S6,O3S,- =
354 90 for State county and municipal
taxes in California alone.
In 1895 the company paid in Califor-
MIA for State and county taxes $685.
263 81, and for municipal taxes S26,-
GAG 81 making a total of SoS9.9lO O9.
These amounts were of great benefit
to the people of California and assisted
materially in paying the expense of their
government and will all be lost to the
State if the United States owns the
railroad, for United States property
cannot be taxed for any purpose. Let
me here state that the Southern Pacific
Company paid last year for taxes in
California the enormous sum of S962,-
151 ID, enough to run many State gov
ernmentS.
In our neighboring State of Nevada
the company has since its organization
paid out total amount of 81, ,6o1 ,OS6 Il
in taxes and last year paid S14o,345 Il
out of total collected in the State of
S57S, ,SS1 &c. being little over one
fourth of the entire amount. Nevada
would be forced to close it's schools and
asylums and turn its sick, insane and
children loose upon the highways if the
Government owned the railroad and
thus deprived the Silver State of the
large amount of taxes paid by the Cen
trail Pacific Railroad Company.
On the northeast corner Of K and
CIV e
beautiful building, which with it's lot
forms a very valuable property. 1t is
the United States Postoffice building.
| It would undoubtedly be assessed at
the amount of 500 COO if owned by an
individual, and would thus contribute
| largely to the revenues of our city and
| county.
Being United States property it es-
capes taxation.
| Consequently the balance Of cur
property must pay an increased rate to
make up for this loss.
| There is an object lesson for all
Such would be the action of the Asses
sors regarding, the railroad if owned
| by the United States. They would mark
! it Government property and it would
| escape taxation. The rest of US would
be compelled to pay an increased tax
| because of this large amount being
stricken from the assessment roll
These figures and illustrations are in
structive to all who love their country
and desire its prosperity.
| To those who seek position or power
or blackmail by abuse of railroads and
their owners, and vituperative assaults
upon all who favor a business settle
ment of a business question, these fig
! ures amount to nothing.
| We of California, and particularly OF
| Sacramento, ought to feel kindly to-
wards this company.
From the day when the first shovelfu
oe earth was dug by President Stan
| ford in 1868 to the beginning of the
year, 1896, the Central Pacific had ex-
pended in Sacramento alone, for labor
S31 600 900 and for material used in its
workshops, $50, 100000, making the
enormous total of $S1 100000 expended
| in this one city of California by this
company.
This sum has given employment to
many thousands of men, supported
many more thousands of dependent
women of business, created new ave-
nues of business and stimulated the
growth of California in marvellous
| manner.
The yearly payroll of the company il
Sacramento is upwards of S2,oOO,OO
1t is that large sum disbursed regu
| larly to our citizens that enables us tt
truthfully boast of good times in Sac.
ramento, to see new buildings arising
on every street, and to note that the
banks of the Capital City are refusing
not seeking deposits