The record-union., 1896-03-27
PACIFIC RAILROAD Debt.
An Eastern View Of the Situation at the
Present Time.
1t is Now Simply Question Of Govern
ment Ownership and Control or
Funding.
From the New York Tribune.)


There is at last a reasonable proba-
bility-now that the debts of the Pa
cific railroads to the Government have
begun to mature, and the alternative
is forced upon Congress of fixing upon
some basis of adjustment or losing the
entaret debt-that some decisive action
viii be taken. Now that this point has
been reached, 1T is of interest to note
that the broad line Of division upon the
question is between two parties-one
of which has for its ultimate object
the entrance of the Government upon
the entirely new policy of Government
management and control Of the Pacific
roads, the other urging a settlement of
the whole matter upon business princi-
pies, just as q similar complication be-
tween business corporations or individ-
uals would be arranged; that is, by such
a readjustment of relations between
debtor and creditor as will insure to the
latter the best return possible, having
in view the formers actual ability to
pay. Several methods of settlement
have been proposed on each side, but
the line of division is distinctly be-
tween Government mana cement of the
roads on the one hand and extension of
tn debt upon reasonable security on
the other. Incidentally, it may be re-
marked that in the course Of the hear
sngs before the Senate and House COM
mittees Senator Morgan of the former
and MIR. Boatner of the latter seemed
more anxious for an investigation Of
what happened thirty years ago than for
an inquiry into what happened in Ala
bama and Louisiana Within the last two
years in connection with certain pro-
ceedings very closely related to their
right to be sitting in judgment in this
or any other case before Congress.
Their curiosity is natural enough, for
the Pacific railroad charters were
passed originally as a war measure
against the cause in which they were
engaged. That they should desire in
formation about the details of the trans
action is perhaps not strange.
All the old straw having been
thrashed over during the hearings
members of Congress and Senators hav-
ing been subjected to the daily receipt
of scurrilous communications from San
Francisco in envelopes stamped with
such Inscriptions as Corruption and
bribery will not carry the day. and &C.
P. Huntington would not steal a red-hot
stove" and most of the anti-monopoly
denagogues having discharged their
venom against the men, now dead, who
built the roads, and against their fam
lilies, their executors and their heirs
all this regular routine having been
performed, there seems, as we have said,
a reasonable probability that Congress
will take some decisive action.
So far as the Central Pacific is con-
cerned, C. P. Huntington, after bearing
with admirable imperturbability and
good nature a badgering cross-examin-
alton, has submitted a proposition,
which seems upon the face of it, without
going too much into details, to be not
only businesslike, but absolutely fair
honest and just to the Government. In
his address to the House committee
last week he stated it with conciseness
and brevity- 1t is simply that an extern
sion Of the debt be granted for a period
amounting to eighty-niTe years at the
rate of 2 per cent. per annum, with pro-
visions for payment upon the principal
in addition to the interest, of 100000
per annum for the first ten years, S400,
600 per annum for the second ten, and
$750,000 per annum afterward until the
whole debt is paid. To secure this in
debtedness the company proposes to
give its mortgage upon all the property
it has Of every kind and description,
with the most stringent provisions to
secure the performance Of the obliga-
ton This will give additional security
to the Government upon 446 miles of
road not now covered, with it's valuable
terminal properties IN Oakland and San
Francisco, all its real estate, lines of
steamers, ferries and their equipment,
and all things necessary to the opera
ton of the company's railroad system.
When IT is considered that the Central
Pacific has fully complied with every
provision of the statutes, and that the
simple question is as to the best method
for making its debt secure-leaving en-
tirely aside the by no means unimport-
ant fact that the Government has in
thirty years saved more than the
entire Pacific railroad debts in the
single item of its own transpor-
tation - this would seem to be
transportation-this would seem to be
about as clean-cut and concise a bust
ness proposition as could well be Of
fered. Between individuals or business
corporations there would be no hesi-
fancy about its prompt acceptance.
Only one thing stands in the way of it.
That is the disposition of a few dema-
gogues in Congress, who, under the
rules have the power of obstruction, to
stave off action, in the hope of making
further political capital by the agitation
Of the plan Of Government control and
management. And that scheme is
fuller of mischief than any that was
ever presented to the American people