The record-union., 1897-01-22
(Santa Barbara. PreSS.O J


Governor Budd, seeking to make a
"grand stand play" issued a proclama
ton making the 10th a legal holiday
in honor of the defeat of the funding
BILL According to our idea. Budd is
"only a little faded flower" and by the
issuance of his proclamation stamps
himself as the veriest demagogue. Fur
thermore, he has written himself down
as an-ass, as the defeat of the fund
ing bill was the defeat of the Govern
ment's hope Of getting a return of its
investments in the Pacific railways.
The ''Argonaut" as usual, comes out
with a pungent, pertinent editorial on
this subject, and if Governor Budd and
the public have not read it we would
advise them to do SO. For the inter-
est of our readers we make few eX-
cerpts from the "Argonaut" editorial.
THE defeat of the funding bill is a
definite one, as the only chance for re-
Viving the bill was for the House to
vote to recommend it to the commit
tee. Powers made such a motion, but
the House refused to pass it, and the
bill may be considered dead. The
United States Government has now no
hope for recovering the debts owed
by the Central and Union Pacific Rail
roads,
If the above paragraph expresses
correct survey of the condition Of the
funding bill' and the affairs Of the
Government with the Pacific Railways,
and we believe that it does, Budd has
simply rejoiced al the Government los
ing the vast sum or sums that it has ad-
vanced in aid Of the Pacific Railways.
The funding bilr' was a means of en-
abLing the Government to secure its
rights to the repayment of the money
advanced, and, though, not the best bill
that might have been formulated. was
the only prospect presented toward en-
abling the Government TO recoup itself.
The funding bill'' did help the Pacific
Railways, let this be granted, but it did
also put the Government in a position to
protect itself, which protection it has
now lost. Budd the Examiner" and
some of the Congressman, opposed the
bill, because they believed that the Pa
cific Railways would derive some COM
fort from it's passage, losing sight Of the
fact that the comfort bestowed was
more than compensated by the ultimate
prospect of the Governments being paid
4t2Ch lis IiNCSulIItIIIS f1OiISIcoS HAS DGSu
shortsighted in this matter, but this is
not the first instance in which Congress
has exhibited near sightedness. The
bin was supposed to be in the interest Of
''COnis," consequently it must be
knocked in the head whatever might be
the consequences to the Government.
Furthermore, some of the Congressman
voted against the bill so that they might
pose as opponents to corporations,
thereby making themselves solid" with
their constituents.
We quote again from the "Argonaut"
editorial: THE Government has two
alternatives before 1t. and either in
wolves the complete loss of the debts of
the Pacific Railways. The Government
can foreclose on the Pacific Railways,
but in order to secure clear title to the
property, It must pay off the first mort
gage. IT would thus have to pay Off
$60, ,000, 900 to acquire title to a railroad
system which most railroad men believe
to be worth less than $4,000. 900. The
other alternative is that the Govern
ment can initiate foreclosure proceed
ings, and then sell its interests in the
property 10 the highest bidder But the
first mortgage would have to be as
suped by such bidder. amounting to
S27, 100000, and it is not probable that
any railroad corporation or syndicate
would assume a debt of S27, ,000. 900 to
purchase a property worth less than
$40, ,000,0 900. There seems, therefore.
to be no alternative for the Government
except to lose the entire amount of the
Indebtedness of the railroads. which in
round figures is over a hundred mill
ions"
And such is the condition Of affairs
that Budd gloats over, gIoating to such
an extent that ne proclaimed holiday
so that the people may join in his gloat-
ing. Budd has been given credit for be-
ing an astute man. He may be an ass.