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

company also expended SASS. $3.50 81 of which
the managers declined TO give any explanation or
10 permit any explanation to be made by others.
1t fur Their appears from the same report that the
gross earnings of the Central Pacific Railroad
from 1853 to December 81. 1886. were 1914, 1884,
1862, and that the operating expenses were
lac, 1873, l02 DO, leaving the net earnings during
the period above Indicated 1924, 9400l3. This
amount, at that time, would have more than paid
the bonded Indebtedness OF the road.
ha be antra ags II IF r
had paid So, 36l l54 80 for services by lawyers to
influence legislation. These uncontr ldicted facts
afford an insight into the methods adopted by Mr..
Huntington and his associates in handling the
property OF the Central Pacific Railroad Company.
Ii is settled law that mortgagor of property
erty so mortgaged and thus endanger the security,
YET the Central Pacific Company has done this
VIGOROUSLY for years
THE KENTUCKY INCORPORATION.
VI.
In 1884 c. P. Huntington and his associates In
the Central Pacific Railroad Company Incorporated
the Southern Pacific Company in the State OF
Kentucky under the especial provision prescribed
in an act of the Legislature of that State, and
which act prescribed that said company should
never do business In the State of Kentucky. This
provision has been eliminated by subsequent legs-
laton. All in all this was the most extraordinary
proceeding devised. From beginning to end
1t was an open, bald. glaring fraud.
After the incorporation of the Southern Pacific
of Kentucky mot dollar of whose property was
in that State), these same parties, VIZ. Mt Hunt
ington and his associat leased from the Central
Pacific Railroad Company all OF its roads and
terms OF this lease ubiquitous that any fair
minded man must admit G.. z. Huntington and his
associates of the Southern Pacific Company sue
ceeded in misleading C. p Huntington and his
associates of the Central Pacific Company.
We Will not dwell upon the terms of lease or IFS
effect upon governmental or other security fur
Their than TO say it shows fraud on its face. 1t is
an undenable fact that Mr.. Huntington of the
Southern Pacific Railroad Company is still run
ming sharp bargain against Mr.. Huntington of
the Central Pacific Railroad Company, because
most of the freight which was formerly trans
nOrt1d Pacific
now diverted from its natural channel, and is
transported over the Southern Pacific road, the
evident object being to bankrupt the Central Pa
citic and this object has been well nigh attained.
A shipper who does not demand tibet his freight
shall go by the Central al hough destined to chi
cago or Ne ork, will find it sent by the souther
Pacific via New Orleans. In word, the Central
p Fac Company, though citizen OF California
tenI!al means Of destroying the industries OF the
State.
INDEBTED FOR TAXES.
The people of California have other serious OBJ
leclons 10 the manner in which Mr. Huntington
and his associates control the railroad property on
the Pacific Coast.
For fifteen years last past the Central Pacific
Railroad Company and the Southern Pacific Com
always amounting to from $500 900 to 81 500. 900,
and for four OF that time they owed S400 900
to the school fund of this State.
Immediately after the incorporation of the
Southern Pacific in 1884 1t leased the Central
Pacific and became the arbiter and controller all
OF its business affairs, and by reason of the fact
that the Southern Pacific is foreign corporation
it has the option in all litigation to either bring
suit transfer suits already brought in the State
courts to the courts of the United States for in
stance. at this term of the Supreme Court of the
United states there is ON the calendar for argu-
the Southern Pacific and Central Pacific Railroad
to the State Of California and for
levied and assessed for the year SS7, yet the ti-
CATION involving these taxes has but just reached
the calendar of the Supreme Court of our country.
The position thus assumed by the Southern Pacific
Company OF kentucy is in most instances email
of Justice. No man who commences a suit against
that company or the Central Pacific Railroad Com
pany, however just his claim, is certain when the
action is brought that il will not be transferred to
the United states courts. California being vast
State territoraly the citizen in such case who asks
the courts OF Justice for vindicaton is often de-
prived OF any right in the premises
PRODUCERS WELFARE IN THE BALANCE.
VIII.
The people of California are further interested In
opposing the re-funding of the Indebtedness of the
Contra, Pacific Railroad Company, because the
welfare of the producers of California depends
The courts have held that corporation is en-
titled fair rate OF interest its actual invest
ment. The question thus presented is what are
the actual investments of the Central Pacific Com
pany?
II its Liabilities what 1t claims. viz: s2o2,-
491, 5S4, then the shippers of California, If they
undertake pay the principal and interest on this
vast sum, are helpessly and forever bankrupt,
though the interest be but or 8 per cent per
annum.
And again. no competing railroad company
or maintain continental line TO the Pacific Stone
II the Central Pacific Railroad Company is allowed
to refund it's present Indebtedness at
or per cent per annum, because private capital
win not invest and compete with capital obtained
at that rate. There can be no remedy for the
Railroad Company in its present management and
in fun control OF this railroad property
II has been systematically said that California
Is the last of the slave States. In relation to its
railroad transportation and TO the influence OF rail-
road corporations this is substantially true.
DEMANDS OF THE STATE.
ia inqis " q of
l. That there should be no re-funding act passed
by Congress, and
by the Government AS will get back the money and
property which have been fraudulently appro-
of the Central Pacific Railroad Com
pRuy, and TO that end every partment of the
National Government should be called into i'm
mediate action. The honor Of the American
people is involved In this question The stock and
bonds of the Central Pacific Railroad scattered
broadcast throughout the financial world. The
American Government has heretofore given this
character and credit at home and abroad.
and to-day il stands as sponsor for what this com
pany does. And yet, by an act Of Congress passed
in 1887, commission formed for the pur-
poses in part OF examining into the affairs Of this
company and reporting the result to the President
and Congress That report WAS made to and now
forms part OF the record of the executive and
legislative departments of the Government
THE GOVERNMENT ROBBED.
1t shows mass of uncontradicted facts
iudicieily and dispassonately arranged and con-
sidered, which prove that the Government and
robbed of from $75,00O.OO0 to 100000 600 and
these facts have never been successfully ques-
toned.
And yet some OF these same men, as the repre-
of the Central Pacific Railroad Com
pany now come before this Congress and demand
a certificate of character.
This demand has no parallel The American
and we therefore ask that neither time nor dis
lance shall change or modify the relations of the
Government to this company afford an excuse
for the conformation OF frand.
If the General Government should now stand be-
hind C. p. Huntington and his associates in their
efforts to refund the indebtedness of the Central
Pacific Railroad Company it would create mon
opoly which would soon be more powerful than
the Government itself.
1t should not be forgotten In this connection that
the very money which the Government OF the
to this late railroad enterprise has
been and is being used to and msdirect the
legislation OF the country, and thereby imperiIs
the safety of the state. The men who represent
these corporations now appear alike before the
National and State Legislatures, and even stand
at the door OF the temple of Just ce.
They have no political principles. They belong TO
no party, are faithful TO no trust and Just to no
man.
TINE FOR DECLARATION.
The time has come when the people must make
declaration OF independence against this corpora
ton, or they will become bankrupt in fortune and
in character.
If this is not done private property interests in
will be destroyed, fortunes VIII be dis
spated. industries will be imperiled and the whole
people will be politically and financially crushed
by corporation more powerful than the State.
ARGUMENT ON THE EXISTING Law