The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-02-01


rance rance Of material facts recently brought to light
lneSe FACTS OF record and incOnteStlble; and
.neir Importance cannot be denied.
Inc amount involved (about one-fourth of the
central Pacific debit Is too serious TO be lightly
9 9eail With This claim of priority must therefore
pc lndieially determined Justice TO the United
States and especially 70 the people OF this coast
demands 1t, and this can only be done IN lore.
closure suit. Such a suit too, is the only way OF
securing the whole road, with its necessary ap-
purtenances, toward satisfying the debt
a nd all these appurenances must be Kept with
ana belong to the road, the latter itself be-
comes useless. A railroad cannot be operated
without terminal grounds ferry-boats where
needed, bridges rolling stock and like instrument
laities Many million dollars in value OF such
property will therefore be lost to the public il Con-
gress undertakes to deal with this question
without previous judicial ascertainment of
the extent and particulars Of it,, belonging
10 each OF the companies and Justly subject 10 the
Government lien.
MUST BE DEALT WITH CoMPREHENsIvELY.
Here are some notable examples OF what we
The Union Pacific road possesses terminals In
onaha, Kansas City, Ogden and other cities on Its
aou.e, OF great value; those above named atone are
estimated in the report of the Pacinc railway
Commission at $l5 100000 The company claims
that tney are not subject to the government lien;
contrary opinion is expressed by others. The
question ID judicial o and can only be deter
mined by a suit wherein the lien is asserted and
foreclosure sought.
Similarly, the State of California donated thirty
acres IN the heart of San Francisco 10 the Western
tnow Centrai) Pacific road expressly for terminal
uses, and the area has since been enlarged more
IMAM NIFTY per cent by the closing OF lntersecting
oIIeets- AS the Central PACING rOaa mas no OtDer
terminals in San Francisco, this property Is indis-
pensape TO The future use and value or the road.
Claimed In foreclosure proceedings, would doubt
TESS pe heio 10 be an appurtenance 10 tne road IN
capable OF severance from ii. But if the case be
disposed OF by act of Congress the contrary will
almost as surely be the result for the gentlemen
who control and manage the Central Pacific have
put a mortgage these terminal grounds, under
which they had issued at their last annual report
March 81, 1880 bonds TO the amount of $l2, 2S3,
800, and while it is quite safe to say that these
bonds have never rot into innocent hands and that
TRANSACTION ar moment
cry brought before court, yet II Congress extends
the time for payment of the debt, 1t will go I'M
challenged until mere lapse OF time VIII put 1t be-
yond the reach Of legal redress
BoNDHoLDERs LOSE NOTHING.
Meantime the bondholders who are, OF course,
one or other of the numerous companies these
people form, lose nothing; for they getting
interest on their bonds. For this fraud foreclosure
is the on remedy; an act of Congress cannot
reach it, for no of Congress can determine the
title OF land III California the rightful or fraudu
lent character OF a conveyance Here, then, in
these terminal grounds of the two roads alone are
at least $27 900 ZOO OF property to be either
saved to the public by foreclosure or lost by refund
ing What conscientious man, charged with the
responsibilities of legislation can feel warranted in
voting for law witch valves, without inquiry,
public rights of such magnitude?
There are, without doubt many other cases OF
accretlons TO the mortgaged premises which fore
closure would bring 10 light and secure which
would be lost by refundng. We have, for exam
pie, public record OF Central Pacific mortgage.
dated April /, 1889, covering number of station
grounds and the like, commonly supposed TO be
appurtenant TO the road, but which. this document
suggests, are claimed by the managers to be dis
ttnct properties and the instrument indicates that
preparation for the worst, they have seasonably
mortgaged them TO themselves.
FERRY FACILITIES
What further instances Of this kind the Union
Pacific road may afford uniformed, but in
connection with the Central Pacific we again di-
rect attention TO such things the ownership of
the ferry between San Francisco and Oakland and
that at Benicia across the Straits OF Carquinez.
We observe that the former of these is for certain
purposes accounted in the reports and public acts
s 81
ind in such reports any account of the large reve
nues Of the ferry, and It would be an amazing and
unprecedented thing il a property of such value
were not found 10 stand in the names OF the man
ayers or one of their convenient corporations. We
believe that the cOmpanys title 10 il and much
other valuable property and the validity Of the
Government lien would be established in fore
closure proceedings.
Then there are the engines and roiling-stock be-
longing TO the road to be considered. 1t should all
be identified, inventoried and earmarked in any
settlement little paint has often heretofore
changed the apparent ownership OF an engine or
car and may easily do so again Nothing is more
frequent here than TO see engines and cars marked
&c. Z. K. r." running over roads other than the
Central Pacific. Has Congress or any OF it's COM
mittees any inventory of this movable property or
any statement of its whereabouts?
ONLY SAFE AND PRUDENT WAY.
In view of all the considerations affecting the
question: we respectfully submit that the only safe
and prudent way to deal with this problem is that
which any business man would adopt in a similar
case, VIZ: first ascertain all the facts of the case
automatically, learn distinctly what your
rights and what can be secured by legal proceed
ings before entering into any treaty of comprom-
Use; make sure, too that the facts OF the case can
not be changed while settlement is under discus
sion. Ii you are taxing property, look to the title
and see that II Is properly described and comes 10
you unincumbered. All this is the more essential
where the conclusion reached is to take the form
OF legislation which will remain effective even
though the considerations on which IL is based
prove false or fail. Here you taking the facts
on trust and assuming most unwarrantably that
you know them all. You DO not!
1t is worthy of note, too, that none Of these re-
funding bills come before Congress with any official
sanction. They are not asked by the executive to
whose hands Congress has committed the business,
nor are they even peiitioned for by the companies
concerned; they are all promoted by private sue-
gesions or by the solicitation of persons whose pr
waite interests are affected. These controllers
OF rival railroad lines, and persons who, having
wrongfully misappropriated the assets and means
OF the subsidized roads, are interested in the
donation OF their frauds, which all extensions and
refunding schemes necessarily involve.
Mr.. Huntington, the most Conspicuous promoter
of refunding has publicly stated that he does not
own more than 100 shares OF Central Pacific stock;
his interest in the question is, VIGOROUSLY as one
of the original directors who divided between
themselves the assets of the company, and as the
head of the southern Pacific, which afterward
took away its trade and reduced it to its present
fallen and bankrupt condition.
SLIPPERY METHODS OF THE ROAD.
Nor do these people even approach Congress
with any formal statement of what they propose
to do pretend they able to do, in the way of
discharging their obligations. They commit them
selves TO nothing whatever, they write nothing,
sign nothing; their communications made
orally TO committees ind vidual members in
have secured the desired legislative conformation
for the past they may violate every promise to the
public made or intimated, and members whose
votes they have won by such means will have
nothing to show on which to Justify their action.
Legislation so promoted is always dangerous and
Objectionable, and generally vicious To such we
are indebted Tor all the mistakes and errors hither-
to committed in railroad legislation, whether by
Congress or by our State Legislatures 1t is the
constant resort of those who propose to profit by
the imprudence, credulity or good nature OF mem
bers of the legislative bodies, whose confidence
they abuse.
II is time that such methods of dealing with
great public interests and taking the words of in
terested railroad managers as basis for iegsla-
ton should cease. And as the means at command
feet and, what is equally important in cases like
the present, as 1t is powerless prevent change
OF conditions pending investigation judicial ascer-
tainment OF facts ana custody OF the property in
viewed are essential prerequisites intelligent or
safe legislation. This can only be done by fore
closure
FOR CONGRESSIONAL SETTLEMENT.
This proceeding is objected to by some persons
because 1t is associated in their minds with govern
ment ownership and operation OF the roads But
there is no necessary connection between the two
IDEAS On the contrary Congressional settlement
OF the case is the most likely course to lead right
UP 10 state ownership. For IL is morally certain
that the Central Pacific road can never tbs
amount proposed to be charged upon it. and the re-
suit must be that when the conformation of past
onenses has been secured, the managers will aban-
don IL TO the Government
The great OBJECT OF foreclosure is to ascertain
with judicial certainty and accuracy the details
nor naEn hn1