The record-union., 1897-01-05

one is many months old. If what NOT
rev men are saying is true, that the
railroad is charging "all the traffic will
Gear, how can rates be increased I'M
ger u1e operations of funding law
Wrthoud killing the goose that lays the
golden egg? And if it would not be
business to increase them what addi-
tional burdens will California be obliged
10 carry under funding conditions?
JUST WHAT 1T MEANS.
Placer Argus: We are aware that the
railroad debt funding proposition is
pltterly opposed by good porulon Of the
people. We are frank to say we can
nno no well founded reason for the op-
position. Granted that the companies
should long ere this have paid their
debt, stdh the fact remains that the
Government did not force the payment.
The funding bill places it in the hands
OF the Government to collect every dol
lar. Of course it is question of time
and an apparent low rate of interest,
but large portion of the debt has
been accumulated at a high rate of
interest
Do our people fully realize what fore
closure ON the part of the Government
means in this county? 1t means this:
That while proceedings are being
pushed, and as long as the Government
holds control not one dollar of taxes
can be collected from the 112 miles of
n hi &c, DO ma
item, the cutting off of about $50, 900
from the collectable tax list of the
county. It means further, that while
proceedings are pending not an i'm
provement will be made. We cannot
expect the company while its property
Is In limbo" to do anything except to
barely keep the road open. In case of
foreclosure and sale, is it reasonable to
expect that any combination that takes
the property. will do so simply for the
public good and give us better rates?
There is every argdment against such
result. Eastern companies do not
throw millions into properties simply as
health proposition, and as to active
competition issues are too easily pooled
to realize that.
The MALLS" REASONS.
Stockton Mail: We believe that the
funding bill should be adopted for rea-
sons entirely different from those ad-
vanced by Mr.. Mills. There are, un-
doubtedly, equities to be considered and
allowances to be made to the company,
but with these the public at all inter
ested in the subject since 1887, the date
of the Pattison Commission, has been
familiar
IT the country were prepared to enter
upon the ownership of railroads. even
of this great transcontinental system
alone, We would favor the assumption
of all prior Indebtedness of the roads
by the Government and it's legal ac-
Quirement thereof for the purpose of
operating it for the benefit of the peo-
pie. This Is not the fact. The East
will not consent to this radical change
in ownership at this time, and there is,
therefore, no other course left the Gov
ernment but to effect the best settle
ment possible.
In this settlement the railroad COM
panies are entitled to the same consid-
Grafton that would be accorded private
creditors, neither more nor less. If
is interested in making the best terms
possible since it is the people of this
coast, mainly and not the railroad
company, that must pay these debts.
Once the basis is agreed upon, these
debts become a fixed charge of the
companies and will be considered in the
fixing of passenger and freight rates
just as much as is any other bonded
Indebtedness or operating and other
fixed expenses. In this view, which is
the one the producers of this State
must take, the lower the liabilities of
these transcontinental lines the better
for us. Since the East appears to be
anxious to pocket most of the losses,
If losses there might be, by settlement
OF those debts, we can afford to accept
the proposition with satisfaction.