Blackfoot news. (Blackfoot, Idaho) 1891-1902, 1897-04-10
PUBLIC OWNERSHIP.
A JUDGE SAYS 1T HAS GOT TO
BE TRIED.
Discusses the Huntington Pacific Roads
Funding Bil The Piatoerats Must
..coms on, or There WIN Be Trouble
In the Country.

From the st. Louis Evening Journal
OF recent date we clip the following
interview which throws much light,
from high authority. on the railroad
question:
Judge Seymour ID. Thompson, VINO -
considered by the legal profession one
OF the ablest attorneys on corporation
law in this country. kindly consehteu
to be interviewed by a Journal report
er on that vital question, Inc gov
ernment ownership OF railroads.
Judge Thompson's associations In
California give him an opportunity o.
fully appreciating the inner situations
OF the funding bill.
The judge. though very busy man
informed the reporter that his tlhe
was at the disposal OF the public press
on such important matters as govern
ment ownership. Following Is the m
teryiew reported by stenogranay:
Judge. II the senate sustains the &C.
ton OF the house OF representatives u
defeating the Pacific railroad Dill, NhaL'
in your opinion, will be the ultimate
/ disposition OF this yexed question.
asked the reporter.
Il think that the natural. II not In
eyisable result VIII be the foreclosure
Of the governments mortgages.
In the event Of the foreclosure Of
The mortgages. what disposition could
,e made Of the roads! Would II not
'esult in the ownership OF the govern
hent Of the roads perhaps their oper-
Iion BY the government
mo; at least not necessarily. II
fou have mortgage on my farm. and
| can not pay II when due. you fore
close the mortgage and the farm u sold
Hnder the order OF foreclosure. II there
y anything left after satisfying your
claim. II comes to me. The govern
ment's position In this matter - pre-
cisely what yours would be in the
above supposed case. II will proceed
In the same way To sell the mortgagcd
property. Doubtless II the road we're
put up at auction under an order Of
foreclosure there would be eombina-
ton formed TO buy II In. As the gov
ernment's mortgage Is only second
mortgage. and as the first mortgage
bonds amount TO an enormous incum-
brance, II Is quite unlikely that any
syndicate will bid enough 20 pay the
governments claim. That. OF course.
Is risk the government must take.
and one which should have been
thought OF when the government al.
lowed the Pacific roads TO postpone Il TO
the first mortgage boudhoiderB You
are no doubt aware that the govern
ment originally had first mortgages for
all the money II advanced 70 build these
roads. When they found that they
wanted more money--elther TO COM
plete the road or TO All their own pock.
cts, they persuaded congress. BY a sup.
Elementary act. to allow them 10 put
a mortgage on the properties which
, should take precedence OK the govern
/. ment's mortgage. This first mortgage
. which Is ahead OF the government
mortgage. Is immense Ia amount-per.
haps 1t exceeds what the whole prop,
, erty Is worth. The Union Pacific Is.
! believe. In the hands Of a receiver, "a
; that II does not seem TO be able TO pay
! the interest on It's first mortgage bonds
!. and its running expenses. The Cen.
/, tral Pacific IL leased to the Southern
!, Pacific Company the Southern pa.
ci1c railroad. but a Kentucky corpora.
ton, which controls the latter and
! many other roads comprising what /.
known as the Southern Pacific system
/, II has always been thought BY the out.
4 side public that the earning power 81
!, this end Of the line-the Central Pa.
cific-was far less than 1t ought to be-
from the fact Of its being under thu
control Of the Southern Pacific com
= pany, possessing rival line. all IL,
own. whose revenues 1t did not have Il
: divide with any one else. as II haf
to do in the case Of the revenues of Ia,
northern route. The maltgn influenc,
7 OF such control ia apparent to III,
. humblest intelligence. II not only 10,
\ to the starving of the Central Pacific
2 but Of the Union Pacific. which had N,
y other outlet to the coast"
:. do you think 1t best for the pov
? eminent to foreclose the mortgage d
, allow the companies to continue in III
ownership of the roads. as contem
!. plated by this bIll?p
i The men who compose the Contra
i Pacific Railroad company and N
4 Southern Pacific company are a gan
= Of public criminals. and the govern
y ment ought not to treat with then
E, The four original conspirators hav
been succeeded in part by men or n
hme flexible morals.
= "You perhaps know how thoy atarts
n this vast enterprise. Huntington m
:. the rest had. at the outside. sa00 000-
= some say only 100000 or their ow,
!. Everything else was furnished bv n,
10 government. or by the first morteao
!" bondholders. They are all enormo,,al
. rich, or have died rich-7IIuntingto,
i Stanford. Croker and Hopkins. Hor
"a kins is said to have left $50 900 0o
q Croker is said TO have left s42 900 00
d The Stanford estate was appraised
IL H7000,OOO, probably much less than