The record-union., 1896-01-29
WHY IT SHOULD PASS.
Some Funding Bill Necessary to Pro
tect California.
Foreclosure Means That the Trans
continental Line VIII Come I'm
der Unfriend1y Control.
0srom the san francisco Argus.l

(From the San Francisco Argus.)
The debt Of the railroad should be
settled by refunding. That is the gen
eral opinion of the leading men of this
State. Tt is conceded by impartial men
of standing, who have given the ques-
ton consideration, that the Govern
ment ownership and control would re-
suit in nothing but disaster and loss
of millions involved. This should not
be considered so long as there is a dis
position manifest by means of liquida-
ton If the railroad mortgage is fore+
closed, undoubtedly the road would fall
into the hands of men whose interests
are not identified with California, be-
cause the Eastern interests would pres
vail as against the interests Of this
State. One Of the most potent argu-
ments in favor of refunding is that the
railroad could be reproduced, at the
present rate of wages and cost OF ma
terials, for much less than the Govern
nent would have to pay for it under
foreclosure.
It is very evident that Congress will
not heed the cry of the blatherskites
and demagogues who desire to see the
bill defeated. The funding bill is re-
garded as a fair and just measure; and
it is for the interests of this State
that it should become a law. The prop
erty of the railroad has greatly depre-
ciated in value, and would not sell for
more than the first mortgage. The
railroad is not able to pay the debt 1T
owes the Government. 1t is a fact that
no railroad has earned and paid off its
capital value within the short space of
twenty-five years. Is it not fair that
such an equitable bill should be
passed? The railroad was undertaken
under the fostering care and with the
aid of the Government primarily as OF
the highest Importance, because it was
deemed by all in authority to be mill
tary necessity. A prominent business
man, the Secretary of the Chamber of
Commerce of Sacramento, candidly
says: 'sThe Government has realized
all, and more than all, than was ex-
pected. / believe that, in the cost of
transporting the mails, troops and mu-
nitions of war, and in putting a stop
to the depredations of the hostile Indi-
ans on the plains, to say nothing of the
development of the Pacific Slope, the
saving and advantage to the Govern
ment, if it could be estimated, would
be found to exceed by far the present
obligation of the railroad"
1t is certainly more expedient to re-
fund than foreclose. This can be ac-
complished by refunding at a current
rate of interest on terms suitable to the
Government and the company. 1t will
not do to deny the debtor a chance to
pay, and thereby lose the debt alto
gether.
This course is the right one to pursue.
BY the passage of the funding bill-to
give the railroad whatever extension Of
time is necessary, and make the interest
low enough ITO insure the ability of the
road to pay it, and also have enough in
reserve to pay off the installments Of
the principle as they fall due. That
fearless and independent journal, the
Sacramento bee" realizes the situa-
tion fully when it contends that: AL
ways favoring Government control of
railroads, there was and is much danger
in assuming control Of the Central and
Union Pacific roads, as it might infiict
an injury on the industries Of Cali
fornia, to the benefit of the East, by dis
turbing the present friendly system,
and the people of this State might be
taxed, in the way OF high freights, to
pay the Sill, 100000 involved, which
amount the Government will practically
lose by paying the first mortgage bonds
and foreclosing."
The opposition against the passage of
the funding bill in this State is being
engineered by Adolph Sutro, Mayor Of
this city. Is lit not a positive fact that
this great wind refoTmer did not dis
cover the iniquities of the railroad mag
mates until they refused to carry out
his desire to make the development Of
Sutro's great land properties by the
Cliff House beach the special object of
their city system? Since Sutro could
not gain his point-to enhance the value
of his land so as to sell 1t at a fabulous
am0unt-he has been bowling, "The
Terrible Octopus" The people have
realized the true inwardness of Sutro's
actions. 1t is too transparent.
Another agitator is the bonlbastic
Councilman of Oakland. J. NJ. Bassett,
who some years ago was discharged
from the service Of the railroad, and
with him is that sanity model Of fax
ism, John L. Davie. the Mayor of Oak
land. Another one is James G. Mcguire,
the Congressman, who thinks he can
be kept prominent by attacking the
measure by vituperative condemnation.
Smooth Jim Is clever browbeater, yet