The record-union., 1896-02-12
RAILROAD LEGISLATION.
Government Ownership an Evil to be
Avoided.

(F'rom the Redlands Citrograph)
While our section of California has
no very direct interest in the funding
of the debt of the Central Pacific Rail-
road Company, now before Congress
for action, we recognize the question
as one of great moment to all Califor-
MIA and all the nation. In fact it is
more a national than a local question.
1t is a great issue which should be
dealt with by Congress on a broad
business basis, and one which should
not and cannot be settled in any event
by prejudiced portion of the San
Francisco press or by the personal
pique or animosity of Mayor Sutro
and the small coterie of calamity
howlers who follow in his wake. 1t
is a plain proposition Of debtor and
creditor, with the debtor unable to
pay at present maturity, but offering
additional security for longer time
and lower interest. The Government
wants and should have it's due; it
needs the money that is owing; it
does not want and, except as last
resort, it should not take the roadbed
of the Central Pacific or any other
railroad. Such a settlement should be
avoided so long as there is a reason
able prospect, by mutual agreement, of
the Government eventually collecting
the debt without serious loss to the
treasury.
We know something of the Central
Pacific Railroad. 1t runs from Ogden
to San Jose From Ogden to Reno it
is simply 500 miles of roadbed over a
desert; then comes heavy mountain
grades, miles upon miles of snowsheds
and never-ending expense for repairs
and maintenance. The Central Pacific
does not reach San Francisco and has
no terminal facilities. AS a part of the
great Southern Pacific system, with its
thousands of miles of leased and branch
lines and splendid local connections, the
C. P. is of much value to that COM
pany; as an Independent proposition,
owned and controlled by the Govern
ment, it can be of little or no value.
1t is understood that under the long
extension of time and reduced interest
provided in the funding proposition,
the Southern Pacific will pledge their
leased and branch lines as additional
security for the payment of the Central
Pacific debt. They ask that the debt
demand be adapted to their ability to
pay in point of time and rate of interest.
The Government is in position to make
the best of bad bargain. When the
Central Pacific was built it was the only
overland railroad, expected to prove
big paying concern, without opposition,
for many, many years. Less than thirty
years have passed since its construction
and vet there are now six transconti-
mental lines.
In keeping pace with our growth and
the demands of the public. the Southern
Pacific Company has entered many new
fields and added greatly to its service
and accommodation in this part of Cal
ifornia. 1t is prepared to keep on in
this good work and go to yet greater
lengths if given the opportunity. That
it can not do so If throttled and
strangled by demagogic politicians in
response to the hue and cry of ire
sponsible, unfriendly and self-ap-
pointed guardians of the public inter
est, is manifest So far as can be
judged by the public expression in this
part of the State there is no crying de-
mand for Government control of the
Central Pacific. Good business judg-
ment suggests that all interests con-
cerned will be best subserved by conces-
sions such as any bank would give a
debtor unable TO pay at present but
showing responsible disposition and
ability to liquidate in the future. Gov
ernment ownership of railroads is an
evil TO be avoided.