CLICK HERE TO
VIEW THIS PAGE
Central Pacific Railroad Photographic History
Museum
Copyright © 2003-2004, CPRR.org. All Rights Reserved. [Last
Updated 6/29/2004]
Use of this Web site constitutes acceptance of the User
Agreement;
Click any image or link to accept.
HOME
[The following OCR text is included
to allow indexing.]
THE PACIFIC RAILROADS
SPEECH
OF
HON. JAMES G. MAGUIRE,
OF CALIFORNIA,
IN THE
.HOVSE OF REPRESENTATIVES,
SATURDAY, FEBRUARY 3, 1895.
"WASH I T^CrT 0 N',
SPEECH
OJ?
HON. JAMES G. MAGUIRE.
The House beinf in Committee of the Whole on the state of the Union, and ha%"^nderconliderationthe bm (H. R. 7798) provi ding forthe refunding of the5Pacific Railroad debts to the United States Govermnent-
Mr. MAGUIRE said:
Mr, CHAIRMAN: In discussing the amendment which I nave Just
offered, to exclude the Central Pacific Railroad system from the refunding scheme contemplated in this bill, I would ordinarily confine myself to a statement of the differences between the two great Pacific railroad systems, as they will be affected by this
measure.
But, sir, owing to the insufficiency of the time allowed for debate, so many objections to the general scheme of refunding remain unstated that I feel bound to devote a portion of my time to an argument against the entire bill.
I have had the arguments which I made before the Committee on Pacific Railroads against this bill printed, and have sent copies to all members. I hope they have been generally read; but, considering the unreadable masses of printed documents constantly received by Representatives through the mails, I am not willing to trust that my printed arguments have received special attention.
"Under leave of the House I had those arguments printed also in the RECORD as an appendix to my speech of August 15 and 16, 1894, against certain claims of the Southern Pacific Company. I will not now repeat the arguments then made, but with a mere summary statement of the objections to the passage of the bill as they occur to me I desire to present a more complete statement of my views concerning the proper disposition of the Pacific railroads after the foreclosure of the existing mortgages.
fc-HAUDS IN CONSTRUCTION AND OPERATION OF PACIFIC RAILROADS.
Twenty-three years ago, sir, the Credit Mobilier investigation startled this country and aroused the whole people to a fever of indignation by its disclosures of shameless corruption and of the systematic robbery of the Government by the directors of the Union Pacific Railroad Company.
It was shown that through the almost open bribery of public officers they had secured immense concessions and mi'iust immunities from the Government, and tliat thnm^h fraudulent contracts with themselves they had iliverted to thfir own pockets tens of millions of dollars' worth of assets of that fompi.niv which it was their duty to hold iu trust for the repayment of tin- Government's bond subsidy, with the interest to accrue thereon.
Congress, upon these disclosures, -passed tin- act of lM7;i, which I mentioned in my remarks this monnnu-. refiuiriiiy suits to be
3 l.1'--'-!
3
iusr.itute l riLrainst these fraudulent directors to compel them to restore the diverted assets,
Such suits were instituted in the name of the United States a^mi^t. the directors of the Union Pacific Company: bufc the United States Supreme Court, unfortunately permitting forms and technicalities to shield the spoliators, finally held that -notwithstanding the statute, the United States Government could not maintain such suits against the directors until the maturitv of its claims and default in the payment thereof by the company.
That decision (98 TL S, Reports) applied with equal force to the frauds committed by the directors of the Central Pacific Company, and effectually postponed all action on the part of the Government against the fraudulent directors of all the Pacific railroad compemies until the maturity of the Government's second-mortsase bonds and default in their payment
KE1LI,Y BILL CONDONES THE FRAUDS;
That period is now rapidly approaching, and it becomes highly important to those who hold the fruits of the frauds in question that the Governments claims against them be waived,
This would be accomplished by the passage of the bill now under consideration. The decision of which I have spoken very clearly holds the obligations of the directors to the Government to be collateral to the mortgage debts of the companies, even where those obligations arise oufc of the fraudulent diversion of the assets upon which the Government had a right to rely for payment of the principal debt,
That decision further holds, by necessary implication, that the Government can not even compel the debtor companies to sue the fraudulent directors for such diverted assets until default has been made in the payment of the principal debt.
But even it the companies could be compelled to sue the fraudulent directors, no recovery could possibly be had in such suite because the companies have always had that right of action; and having neglected for more than twenty years to pursue it, they are unquestionably barred by laches and the general statute of limitations from pursuing it now. The same is true of the stockholders-
Of all defrauded parties the Government alone is in a position to sue the directors when the now contemplated default shall be made. The Government's cause of action has not yet arisen, and it alone is not barred.
SECTION H WOBTHLESS.
Section 14 of the Reilly bill, which in terms requires the corn-panics to sue the fraudulent directors and. provides for the conduct of such suits; is absolutely worthless- It is a delusion- The companies have lost their rights against these directors,
Gentlemen of the committee have said, in reply to incpiries, that the acceptance of this act by the companies will constitute an estoppel against the assertion in court that these claims are barred.;
tnxt that is absurb>
The fraudulent directors are not to be parties to the acceptance of this act, and they can not be estopped by anything that the
companies may do.
Nor would it help the matter in the least to provide in this bill fliat the Government, instead of the companies, should sue the directors, because the extension of credit on the original obligation would postpone if it did not extinguish all collateral obligations,
It follows, therefore, that the first and most certain effect of the
18S1
4
passage of the Reilly bill, or of any funding bill whatever, will be to condone the colossal Pacific railroad frauds, and to finally release the fraudulent directors and their estates from their present
obligation to restore the stolen assets-
AN ACT TO FUND STEALINGS,
The fraudulent diversion of assets by the directors of these Pacific railroad companies in the matter of construction alone amounted to more than their present debts to the Government,
I have not time to deal with this proposition in detail, but for proof of my statement I refer to the report of the Pacific Railway Commission, particularly to pages 51, 82, and 137,
In view of these facts would it not be well to change the title of the act now under consideration so as to read: ^An act to fund the stealings of the Pacific railroad directors and release said directors from all obligations to the Government resulting from
such stealings "?
There might also be appropriately added to such title a declaration that the act further provides for levying "a special tax on the people of California, Nevada, Utah, Wyoming, and Nebraska to make good the losses suffered by the Government through such stealings."
CONTINUED DIVERSION OJ? EABKINGS.
In all that I have thus far said I have dealt only with the frauds committed in the construction of the roads; but the plunder of the companies did not end with the construction of the roads.
For twenty-five years a side copartnership, consisting of a majority of the board of directors under the disguises of various corporate names, has been robbing the Central Pacific Company of its net earnings.
That copartnership is now, under the name of the '' Southern Pacific Company of Kentucky," absorbing all of the net earnings of the Central Pacific road, and holds a lease fraudulently made by the directors with themselves by the terms of which, they are to absorb all net earnings of the road for the ensuing ninety years,
I called attention this morning: to the fact that this fraudulent lease is expressly mentioned and at least by implication ratified by section 6 of the Reilly bill-Is this House prepared to ratify all of these frauds and to cancel all obligations arising out of them? I think not.
RESTITCTTTON, NOT PUNISHMENT, SOUGHT.
Gentlemen accuse us of inhumanity in pursuing some of these directors even to their graves in order to punish them for old offenses» Such talk is the veriest nonsense. We do not a^k for the punishment of even the living conspirators. We ask only that the stolen assets which are still accessible be pursued and recovered, whether they or their proceeds be in the hands of the original spoliators or in the hands of those to whom they have come by gift, bequest, or inheritance.
This is the usual and ordinary course of procedure among citizens, Why should the Government refuse to pursue it in this particular case?
AN KASY NOVATION.
The gentleman in charge of this bill [Mr. REILLY] tells us that the first thing to be done by each company is to deposit security satisfactory to the Secretary of the Treasury for the payment of the first-mortg^P bonds ^ their maturity, and, lie Fells us, they
1S:?4
0
will not be likely to do that unless they intend in good faith to carry out all the conditions of the bill,
In this, it seems to me, the gentleman is grievously mistaken-The first thing to be done by any company desiring to take advantage of the act is to file its acceptance under section 12, which reads as follows^
SEC', 12. That this act shall take effect as to each of the said companies and their branchesi respectively, as hereinbefore described, upon the acceptance of its terms by the board or directors of such company in writing, over the corporate seal of such company, signed by ifcs president and attested by its secretary, being filed or deposited with the Secretary of the Treasury within six months after the passage of this act, subject, however, to the completion of the settlement and adjustment in this act proposed and provided; "but any company which shall not so file its acceptance shaU take no benefit from this act-
This acceptance of the act will at once constitute a new contract between the Goyernmeut and the accepting company, which may or may not be followed, at some time not specified in. the act, toy the deposit of the collateral bonds or the security for the payment of the first-mortgage bonds-In the meantime the Government's right to proceed against the company will be absolutely suspended by the new contract, and all obligations collateral to the old contract will be discharged,
The reservation? contained in sections 2 and 17 of the bill will doubtless operate as intended upon the companies'accepting the act and failing to comply with its provisions, but they can have no effect at all upon the directors and stockholders whose obligations are collateral and who will not be, in any way, parties to the acceptance of the conditions of the act.
It is quite probable that this easy means of escape on the part of the fraudulent directors and their successors in interest will be the extent to which the companies still under their control will avail themselves of the act,
NO LEGISLATION NECESSARY^
Hasty legislation at this time is entirely unnecessary. Existing laws fully enable the Secretary of the Treasury and the Attorney-General to protect the rights and interests of the Government in the Pacific railroad matters.
This being the case, the rights and obligations of all parties should be permitted to ripen and to be enforced in accordance with the laws under which they were contracted-
FICTITIOUS CAPITALIZATION AND OPPHESSIVE CHAROE5-
Another effect of the passage of this bill will be to continue the present fictitious capitalization of the Pacific railroads as a basis for excessive and oppressive freight and. fare charges.
These roads are capitalized at several times their real value, and their right to earn interest on the fictitious capitalization seems to be conceded by the Interstate Commerce Commission.
For example, the Central Pacific Eailroad is capitalized at $173,-000,000, while the Pacific Railway Commission, in 1887, estimated its real value, measured by the cost of reproducing it, to be only
§i34,500,000. (Report, page 301.)
If the roads are sold on foreclosure they will bring presumably about their true value» and their selling price may be taken as their true value for the purpose of fixing freights and fares hereafter,
This is a most important consideration to the people of the
West, who maintain these roads, and who must be taxed to pay the funded debt, if this bill should paas.
i&'a
0
A TAX OX THK WEST.
•i-n on +Tint the funded debt. as contemplated by It is conceded by allthat^ and fare charge on the
thisbill. must bGP^.^^^^^^^ the burden will be di.s-traffic of theroads; but ^^^twe^ tlie East and the West. tributedwith practical ^.uall7+^ mil pay the excessive
^^cha?^^^^ ^TI °rthe
freight c^arfees on ltli f ^ East must pay like charges u^' al^c^o'S Ti^ed eastward, thus equalizing the
^U^rtunately for the West, the almost universal law of trade, thaTaU burdens upon the production, transportation, and exchange of commodities are shifted to and paid by the ultimate confer, does not apply to the great bulk of the freight shipped from the Pacific to the Atlantic Coast, while it does apply to nearly.
if not quite, every commodity shipped westward.
That law applies to all commodities, such as manufacturea, the production of which can be gauged according to the demand: but ft does not apply, except remotely to discourage the industry generally to agriculture or horticulture. In those enterprises the yield may be light or excessive, in proportion to demand, from causes wholly independent of the producers* volition or foreknowledge.
The farmers and fruit growers must take their chances always
upon the fruitfulness of the seasons, not only in this country but in all countries whose similar products are sold in the same markets with ours, whether at home or abroad.
This distinction between the products of farms and factories in the markets is not new.
It has long been well understood, for example, that, while cost of transportation and tariff taxes are always added to the prices of manufactures imported from Europe and are all ultimately paid by the American consumer, the American farmer has never been able to add any such expenses to the price of his wheat, either in .the home or the foreign market.
The reason for this apparent paradox is that the character and extent of soil and climatic conditions favorable to the cultivation of cereals in this country always induce the production of a large surplus of such cereals which must be sold in the world's open market at prices fixed by the world's supply, regardless of the cost of producing or transporting the American product,
The prices so fixed in the world's market fix tlie prices of such
cereals also in the home market at just the cost of transportation less than the world's prices.
So it is with us in dealing with the East; we must pay the freight charges upon most of the commodities which we send to the East
T^e^16' e ^V^ obl.l^cl t0 P^ a11 ^^t charges upon the Eastern commodities which we consume
shiS wh^h0^6^8^8 VS11^ I have Ilot overstated the hard-
Ita^l^ a^ ?rTh,T of^ bln would "^P086 ul)on ^e P^'inc fttates that ai e tributary to these railroads.
Jll^f^.L^^^-e^ to Pay, in excessive freight andS^^-ofTe^^""^
^doffetneriodP^^^^^^^^ sy''>tems• a"11 leave them at tht-cumbra^. Th^ S^K^^ free from "-
tiJS^t^ S ^t^F wh0 wou1'11 thin]t 0' ^•"^"e ie tilltetl &tdtes (Tovernment through the Paritic
7
railroadsubsidies or the dishonesty of their managers by levying a special tax on the people who live in the region traversed by the roads, but under the form of a requirement that the railroad companies pay the amount of those losses you will, bv the passage of this bill, reaJly farm out the taxing power to these companies to
raise the amount from us by a special tax on our industries and our commerce,
DIFFERENCES BETWEEN VNTON AND CENTRAL SYSTEMS,
What I have said applies to both Union Pacific and Central Pacific systems, But sir, there are several additional ob-jections to funding the bonded debt of the Central Pacific Railroad Company which do not apply to the Union Pacific.
The Central Pacific Company was organized under the laws of California, and its life is absolutely limited by the constitution and laws of that State to fifty years from the date of its organization, It will cease to exist in 1913, while the funding period under this bill will not be completed until 1945.
The company is absolutely incapable of contracting for the payment of the installments provided for in the bill after the year 1912, and -will be absolutely incapable of performing such a contract if made-
Again, under the laws of California the stockholders are liable for the debts of that corporation in the proportion which the stock of each bore to all of the stock issued at the time the obligation was incurred,
Huntington, Hopkins, Stanford, and Crocker at that time owned all of the issued stock, so far as known, in equal shares, Their estates are ample to respond to the amount of the entire claim of the Government. Proceedings are already in progress to establish that liability against the estate of Leiand. Stanford,
This bill, if passed, will release all of these claims and terminate the proceedings without judicial determination,
Again, the Central Pacific Railroad has at least a third mortgage resting upon it—a blanket mortgage on the whole system for $16,000,000—which will be prior to the collateral mortgage provided for in the Reilly bill, and rendering the latter absolutely worthless as security to the United States.
Again, the controllers and managers of the Central Pacific Company are the owners of a competing transcontinental railroad, connected with all of the feeders of the Central Pacific Railroad, and will, if a novation be created releasing them from their personal obligations for the Government debt, be more interested in destroying than in building -up or maintaining the Central Pacific
road. Further, and perhaps the worst of all these special complications,
the Central Pacific Railroad was, in 1885, leased to the Southern Pacific Company of Kentucky for the period of ninety-nine years at a rental so low that it absolutely precludes the Central Pacific Company from complying with the conditions of this act.
Under these circumstances, whatever may be the conclusion as to the propriety of funding the bonded debt of the Union Pacific Company, the Central Pacific can not be treated with upon the
J
same terms.
PACIFIC COAST PROTESTS.
Mr. Chairman, the gentleman from Vermont [Mr. POWERS] on Thursday last and other gentlemen to-day have denounced the mayor of San Francisco for having sent letters and telegrams to this House charging, or at least intimating, that corrupt means
I&M
8
might be used to secure the passage of this bill, and denounciu;
onl^of the principal beneficiaries of the bill as a corruptioms_an_ a man ready and willing at all times to bribe legislators and other
public officers. - - , , ,, __.i .1,-These statements have been referred to as slanderous, and the gentleman from Michigan [Mr. WEADOCKI this morning took occar
sion to denounce Mayor Sutro as a cowardly slanderer. What all this has to do with the merits of the bill under consideration I am quite unable to see. Mr. Sutro has been zealous indeed in his opposition to this measure. Perhaps he has been oyerzealous. and this overzeal may have created some prejudice where more .temperate methods would nave secured favorable consideration;
But Mr. Sutro in this matter represents a public sentiment pervading California. That sentiment is voiced most effectively in the monster petition which' I presented to this House on Thursday last. containing signatures of more than 200,000, citizens of the Pacific Coast States, voluntarily forwarded to the San Francisco Examiner, upon a publication in its columns for a very short period of a petition protesting against the passage of the bill now under consideration and favoring foreclosure and Government
ownership of the Pacific railroads.
That sentiment is also expressed in the joint resolution of the California legislature telegraphed me by G-overnor Budd and presented by me to the House to-day. Personally Mr. Sutro needs no vindication at my hands- He has been a citizen and continuous resident of San Francisco for more than a quarter of a century and was on the 6th of November last elected mayor of San Francisco by the largest vote ever received by any candidate for mayor of that city.
Although a very wealthy man, Mr. Sutro expended less than $500 in the campaign, and no man can charge that in any step toward his election to the mayoralty he used a dollar corruptly or improperly. Now, Mr, Sutro's charges are not at all directed to the members of this House, and not one of his communications can be pointed to in which he intimates that any member of this House has been corrupted or is subject to corruption. He charges that Collis P. Huntington is greatly interested in the measure before the House, and that he has never hesitated to resort to bribery for the accomplishment of any purpose of this kind in which he has been interested.
These statements of Mr. Sutro are more than justified by the now famous Huntington-Colton letters, copies of which are accessible. I have a number at my desk. They are to be found also in the report of the Pacific Railway Commission. They were written by Mr. Huutington to David D. Colton, his partner, at San Francisco, and the originals were introduced in evidence in the case of Ellen M. Colton against Leiand Stanford and others. They expressly show that bribery of Congressmen in a previous Congress was contemplated and practiced by Mr. Huntington on behalf of the Central Pacific Railroad Company and other interests of its managing directors. These letters justified what Mr. Sutro has said in his communications and they should be received rather as useful warnings than as insults to any member of this House.
No honest man can read those letters without realizing not only the utter corrupfcness of the man who wrote them but the shockingly low estimate which he placed upon the moral characters of thepeoples representatives in the Congresses to which they refer.
He and his associates seem to liave proceeded in all their deal-
1824
9
ings with the G-overnnient upon the theory of hninaii character said to have been suggested "by Guizot to King Louis Philippe:
" The peoplel Bahl" said wise Guizot;
t1 Bribe the needy, high and low;
Pay them, tickle them, scatter wide
Star and ribbon to please their pride;
Give them places, give them pelf:
The law of man is the love of self,
Every conscience may be sold,
Every man has his price m gold.
« « * * - 9
We rule, Oh King, on a deep-laid plan, We know the worthlessness of man."
Mr, Huutmgton's reports of his successes, read in the light of the all too plain statement of his methods, indicate that, in those Congresses, he found men willing—
To do the tyrants high behest, And earn the robber^ bribe.
Let those who deprecate what they are pleased to call " slander of the Pacific Railroad builders" remember that G,P, Hunting-ton, one of the builders and one of the principal beneficiaries of the legislation now proposed, is the chief slanderer, upon whose
written statements to his partner the assertions objected to are mainly predicated,
Let them remember also that the Pacific Railway Commission found that $.5,000,000, at least, had been expended by the Central Pacific Railroad managers in corruptly influencing legislation, and that Leiand Stanford, when interrogated concerning that expenditure by the Commission refused to answer, and was finally relieved by the circuit court upon a technical objection, from his obligation to answer,
I do riot blame gentlemen for becoming indignant at the recital of these crimes; but it seems to me that their wrath should prevail rather against the men who committed the crimes than against the man who calls attention to them,
THE "EXAMINER" PETITION.
The following is a copy of the "Examiner petition," as it is universally designated in the West, which I presented to the House on Thursday last:
To the Senate and House of Representatives of the United States:
The undersigned citizens of the United States, residing in the States and
Territories most vitally interested in the management of the subsidized
transcontinental railways, respectfully represent:
That the bonds issued by the Government in aid of the construction of the
Central Pacific, Union Pacific, Western Pacific, Kansas Pacific, Central
Branch and Sioux City Pacific railroads will begin to mature on January 16,
1895, aod will all fall due -within the following four years-Thai the principal of these bonds amounts to §01,633,512, and the interest
paid by the Government up to May 31,189-1;, and not repaid by the companies,
is $re,362,227J9>
That the companies are under obligations to repay the sums so advanced as the bonds mature; that these obligations are secured by second mortgages on the roads, but there is no probability that any attempt will be made to meet
tbenL
That the roads have been so managed as to diminish the value of the Government security and furnish plausible reasons for making such a compromise as would leave the debts of the company to he paid by future generations of
stockholders- _ _ „- -„ - ,» - ., That in the words of the report of Governor Pattison of the Pacific Kailway
Investigating Commission, Lfc a mere creditor might consent to a compromise k which, m the sovereign dealing with a dishonest debtor who had violated all laws and covenants, would be repugnant to public pohcy. It can not afford to condone fraud, to validate the iniquitous work of the Credit Mobilier, the Contract and Finance Company, and similar organizations, or to ignore the
1824
10
, t „ ^ionriminntinna and extortionate charges and crim-uniawful and puti-ageousdBpriimi^ftfcio^^ characterized the admin-
iniil conspiracies for controlling traae wu^ completion." istration of these railroads ^^.^i?1^ neces-
That to the people of thePacificCoa^t i^Sinunication with their Eastern
sitrtohaveanindepen^
markets. ^^^^^^^^roadbu^ private capital would at once
wbicSepe^e'had no interest; a disaster whose recurrence would be im-?Se in^hf presence of an own Government line free from strikes or
labor difficulties of any kind, as aH branches of the public service are. In view of these fads we earnestly beg that no extension of time on any
terms whatever, be granted for the paymentofthe P^1^^1^0^^^,,^
that immediately on default in meeting the matured bonds the mortgages be
foreclosed and the roads bid in by the Government and operated as national
enterprises. And your petitioners will ever pray, etc.
The great number of signatures—more than 200,000—and the manner of its signing entitle this petition to more than ordinary
pfvn QI f^pTfl 1"i on
These signatures were not as a rule personally solicited. They, came spontaneously upon the mere suggestion in the columns of the San Francisco Examiner that such a petition would aid in defeating the legislation here contemplated.
The following history of the petition as recently published by the Examiner is not only interesting but instructive, as showing the widespread and intense sentiment on the Pacific Coast against a,ny scheme of settlement of the Pacific railroad question which involves saddling these odious monopolies and their fraudulent debts upon us as this measure will do.
"Under the leave already given by the House I will print it as a part of my remarks:
HISTORY OF THE PETITION.
On July 30,1894, the Examiner contained a dispatch, under date of July 19, from Washington. D. C., announcing that a funding bill had been agreed upon and that the House Committee on Pacific Roads was ready to report. The bin provided for an issue of bonds for a period of fifty years at 3 per cent wherewith to pay off the indebtedness of the roads to the Government.
On July 31 an editorial appeared in the Examiner soliciting an expression of opinion from the people of the Pacific. Coast on the question as to whether the fcrovernment should foreclose and take possession of the railroad. In the same issue was first printed a formal petition against the funding bill and in
^roi ^"^"ment possession of the Central and Union Pacific railroads.
roo"^3^1^^^^0"!,^^ ^^y ^ for about tour weeks, and as a
^^^tft^^^^^^^ at the Examiner office 2,048 signa-T® ^W^ the b111 aDd m favor of Government ownership.
in the issue of July 22 telegrams were printed from E V Debs and C P
?roS^X^o^a^^^^^ ^ews on the sitiStion.al^isAementa r" ?tT^r??^^ml?n^t people .^roughout the country.
were o^SeSh o^STw^"'^lts ^ "-^us. That dav 2,16;", signatures Se^fourTysp^ec^y^^ more than had been obtained collectively for
010°" ^u^^'h0?^^^^ on ^lyai the total was 11,-a Ke ^DSrfo^AS^t^ amoD^t the subscribers
lDS^ooDthm& SyJ'^v^^t^^01^ ^T^al:d ^"'^'yre-
aTl of whom had signed t£;etitS^ S11""1^' 0{^11^ w^ ^-S^
nrstsubmitt(;cl,an^am iitffi magnificent figure oflWt.^ August ai, the total li;id rearhed the
On August 3 Adolph Sutro's flrsit Hat nf .»rmc - i , largest single list up to that time 'm was ^^•'•d it was the On August 3 the total had reached 50 149
w^I^^i^Ses^er^S^^^^ th. pn>nk., during .,nit in during th. first we.k. 11,^ %, S^^:6^^^ wore
11
August 5 William Farrell, a cigar dealer on Market atre ?fc, sent in a petition ^0 feet long, containing 3^230, the largest list t^ that riat.e.
On August. 7 the 75,001) mark was passed, the tola,! on that day being 7(i,6)2,
On August 8 two incidents of note occurred. Adolpb Sutro broko the single-petition record with 3,:i04 names, which Iwlped to swell the total for ono d;iy to 10,1(13, the largest single day's record to date. The total was S6.775.
On August. 10 the total went to 10f).^27. On that date it was decided to close on August IT, and on the same date a large petition to hold 50 names was printed on the front page of the Examiner.
On August ir» the 125,000 mark was passed,
On August 10 the record was broken with 10,276, the largest for a single day
up to that time,
On August 17, the day set for closing the lists, the largest single day's returns were received, 11,904, Mr. Sutro having sent in the largest list, containing 3,571. The total was now 155,8^3, and on that day it was decided to run up
to 300,000, '
On August 20 the first tabulated list appeared, and on August 25 the 175,000 mark was passed.
On October 9 the list was closed hurriedly to be put in condition to forward to Washington, that its influence might be exerted on the members in the closing days of the last session of Congress, the bill having then been reported. The grand total of names then exceeded 200,000, all voters,-and representing every State on the Pacific Coast, California giving a total equal to nearly two-thirds of its voting population. When it was learned that the Beilly bill would not come up at that session the lists were held back- If they could have been reopened the total would have been largely increased-
CALIFORNIA'S GREAT RECORD.
The names for California, by counties, are as follows:
Alameda,.,,---,-Alpine ----,---„.
Amador-,.---,----.
Butte ..---,---„,. Calaveras,•,-----
Colusa ----,--„--
Contra Costa ----
DelNorte-,-----
Eldorado --------
Fresno--, -„,»,---Glenn.------ --...
Humboldt --»-,-, Inyo--—-------
Kern------.-,----
Kings ._,,,----,,,
Lake ------,------
Lassen ,------„, -
Los Angeles -----
Los Angelos, city Madera ,„,-»--,-, Marin.------ -,m
Mariposa--.------
Mendocino -------
Merced ---..-----
Modoc ,,-------,-
Mono------,,,----
Monterey-----t--
Napa------.--- ---
Nevada - ,-----,-
Oakland --.n----
Orange,-.--------
4,130 | 20 '
376 3,340 1,708 1,078 1,618
204 1,281 4,209
802 2,038
178 1,316 1,450
688
804 4,344 3,634
838 1,014
534 2,194
688
380
168 2,048 1,398 3,637 6.080
789
Placer -^..,-----
Plumas ------,,,,
Riverside -------
Sacramento - - - -
Shasta ----------
Sierra.-,,------.
Siskiyou-,,--,--Solano ----,.----
Sonoma ---------
Stanislaus ,----.
Sutler --.--,,,--Santa Barbara- -San Benito-m--San Bernardino Santa Clara--,,-. Santa Cruz ------
San Diego--.---. San Joaqum-,--San Jose --------
San Luis Obispo, San Mateo ------
Tehama,,-----.;
Trinity --.,,-----. Tulare ----,----Tuolumne ----,. Ventura -a,-----Yolo-———,-. Yuba--— --—-.--San Francisco -.
3,338
640 1,601 3,446 1,738
816 2,028 8,146 4,109 1,234
640 1,623 l,24g 1,925 3,158 2,814 3,884 2,086 3,703 2,191
870 1,230
276 3,588
711 1,1^ 1,406 1,336 50,354
Total
153,170
OREGON'S QUOTA.
Oregon was enthusiastic on in that State sent in a total of
Baker ,..--..---,.-----,--------
Benton-.,.-----'--------------- -
Clatsop ---------..----i--------
Clackamas --...---..-----------
Columbia ....---.---..--------.
Coos ----...-------.---»--------
Crook .----..---..--..-------..-
Curry....--------,------------ -
Douglas--..-- ,----.----.-------
Gilliam .-.-.---------.---------
Grant.---.--.-.----------------
Harney ---.---.--------"-----
the subject, and the readers of the Examiner 13,038 names, distributed as follows:
284 Jackson------.---..------------ 1,053
180 Josephine---------- ..-.---.---. 636
373 Klamath...-..-.-...-..----...-- 243
504 Lake. ..-..-..--„.-----.-----.,- 121
313 Lane-.-------------------.---— 784
. 1,148 Lincoln....--.-----.----------- 134
18 Lincarn----.--------.----------- 20
183 Linn..---...--.----..-----.--- l,0a0
. 1,134 Malheur......-..-----..------- .60
118 Marion........----...--,.------ 819
136 Morrow--.-------------------- .88
136 Multiiomah-------------------- 374
1834
12
Polk-.,--, Portland-. Sherman,. Staraey - - -Tillamook Umatilla-. Union-----
198
1,438 88 13 166 290 226
"Wallowa----"Wasco -----. Washington
Y&mhill----
74:
161
287 374
Total.
13,028
signa-
29
59 1,228
62 698
54 850 228 138 668
80 120 729 693 196
WASHINGTON IN THE FIGHT-
Washington, too, took up the fight and spontaneously sent in 10,955 tures, the following counties being represented:
Okanogan---Pacific ------Adams - -. Chehalis -Clallam ,-Clarke---. Columbia Cowlits --Douglas -. Franklin -Garfield--Island,---Jefferson, Kin^s ---, Kittitas >-Kit-sap-—. Klickifcat-Lewis ,---Lincoln -. Mason,..,,
23 601 378 395 76 342 1 60 76 60 247 720 540 150 14 163 214 166
Pierce------
San Juan--- „
Skagit-------
Sbamania---Snohomi&h- -Spokane-----
Stevens -----
Thurston ---Wallawalla „ Wahkiakum Whatcora - - -Whitman --, Yakima -----.- 1,
Total 10,955
NEVADA'S EFFORTS.
Nevada's list contained the names of nearly one-third of its voting population, the following counties being represented:
82 Ormsby -,---------------------„ 329Churchill -Elko.-----Esmeralda
Ormsby
342 Nye-———.„„„-,.-.--—, 86Nye---Storey
167 Storey — —--—————- 693
Eureka Douglas, - -Humboldt Lander---. Lincoln --, Lyon-,-,,,171 228 536 100 236 269
"Weber ---,, White Pine "Washoe----
883 610
Total
3,838
IDAHO DII> WELL,
Idaho did quite as well in proportion toits population, sending atotal of 2,539 names from the following counties:
Ada--,.-;
Cassia - - -. Boise----. Canyon -Custer -. Brngham
Alturas -.Fremonfc. Idaho ---, Elm ore -Lemhi --
192 3
66 100 9 3 14 86 77 178 103
81 71 324 375 19 96 18 635
Lo^an------
Latham •--
Latah-,-.,, Kootenai --Nez Perces Oneida-.,--Owyhee----Shoshone - -
Total- 2,539
MONTANA'S LIST.
Meagher - - - -Missoula ----Park --.„.„
Raivalli......
&iilverbow --Valley ,„...
Yellow&itoaiu
3
101 ^7 W
403 W 41
Total
1, -141
Montana sent in 1,441, as follows:
Beaverhead---.---. --^, ».-.,„. 43 Cascade---„-------„_-,,.._„. 7
Cuater -----,-,-,-----,.-.,„_,„ 33
Deerlodg-e --„-- ..,--„-. .,„.,, 291 Flathead „-,,-----------„.„__. 21
Gallatin- --.--,., ------_,.-,„.,. 40
Jefferson —-- -,-,-.- --.-,..„,, 114 Lewis andGlarki;;---.-- ..-.-„._ i;y Madison --.-------„,-----.,„.. ^
1&^
13
ARIZONA'S ENTHUSIASM,
Arizomi made the splendid showino- nt a ion nnn, 3
better if time could have been SSm^d % f^^^^111 have ^n® tions: Bianrea. me following counties sent peti-
^ocS^^::::^:::::::;:^::: 3! ^gat--------- 251
Coconino- --...---........ w ^'ai'-' -—"—---——— 236
Gila..-.............„...::;:- gg ^y— -—----—-- 670
Graham................ "^ Yuma—•——-—--.—..... 147
Maricopa..............,.......: glO Total ~s~fm
Mohave ----------------........ 307 •L"1"1"-----------.--..--.... 6,iw
UTAH'S CONTRIBUTIONS,
Utah is represented by the following counties:
S®1"^""-- --------------- 1 Summit.'............ wa
Box Elder..................... 65 Washington.....""- "%
Carbon.......................... i -Weber........ -—--—— 18
Davis_--—-...—-„...-....... l Utah--........... --——-— •»»
Grand -----.-....---........ 51 --.—--.—____A
Salt Lake....................... 299 Total........... . 930
San Pete---........-............ 2 --—-.-—-— aou
FROM TEXAS TO PENNSYLVANIA.
Other States also took a lively interest in the work. Colorado sent in 700 "iS™6/3',"^ —Si^ST395' ^nnesota 265, "Wisconsin 13, New Yorh 13, Missouri
?"8' t?1^?5^ 319' Neb^a?kS-396' Pennsylvania 22, Wyoming 97, Illinois 72, South Dakota, 109, Ohio 65, Kansas 883, and Texas 296.
Other States m a scattering way raised the grand total to 200,507, making this undoubtedly the largest petition ever presented to Congress from the Pacific Coast.
LABOR FEDERATIONS' MEMORIAL.
I have received hundreds of letters and telegrams from all parts of California and the "West, from official as -well as from private bodies and individuals, all urging the defeat of this measure as essential to the future prosperity of a great and rich section of the Pacific Coast. I can not now even refer to them specifically, but they undoubtedly speak the universal sentiment of the West, as do the resolutions of the legislatures of California and Colorado, now
in session.
But there is one other memorial expressive of the sentiments of the great body of the laboring classes East and "West on this subject. It is the memorial adopted by the American Federation of Labor at its last annual session in the city of Denver, in Decem-
T'^pT1 Tad"
The memorial is to be found on pages 17 and 18 of the official record of its proceedings, and is as follows:
To the honorable Senate and House of Representatives of ttie
United States of America in Congress assembled:
Your memorialists, citizens of the United States, respectfully protest against the passage of either the bill prepared by the Attorney^enerd of the United
States, now pending in the Senate, or the bill Presented W^?0"^^0"
mittee'on Pacific Railroads,nowpendingbef orethe_Souseof ^P^636"^1.^:
or anv other bill of a similar character, both of said bills being ror tne re-
orgaSzation of the Union Pacific and Central Pacific railways and for the
extension of their securities, ni-^'hain^vaa^a TirRnant and First. Because said bills ignore almost entirely ^^STo^cFtSens here-prospective, of the people now occupying ftndthemultltude^
after to occupy the vas rich, and fertile re,^onofc?^nt;LS^^^ affected by sa^d railroad system; a_ country.lndudln^t^ ^
Nebraska, Colorado, northern New Mexico, nort^rnres^„wyomlug^^^
"^nTBT^u^tte^h^ffl^^^
WW^WW^^^^^^ meara- or eTOn fifty years, to come.
1824
11
Third, We protest against the»passage of anv such bm.be^u^
considering the matter in the light of what ought to be the S113^"6511011,1^;, the publicTnteresfc and nationaTwelfare, their mam consideration is directed
to a question of how to recoup the sto^holders of the main 1^^^^^ Pacific road, the successors of the Credit Mobiher, the most pampered bene^ ficiaries and the recipients of, the largest powers to oppress the people and of the most munificent contributions of Government aid in the history of the
^iSiSSi. Because these bills extend and ratify the authority of said beneficiaries to foreclose and to cut off all other stockholders in the branches of the TJmon Pacific system, who were never aided by the Government, and who owe it nothing. And for the unworthy purpose of using their property to strengthen the Union Pacific security, now only on its main line, it is proposed that the branch lines also shall be mortgaged to the Government to strengthen its security for the whole property, on low valuation and low interest, for fifty or a hundred years to come. .-_. - ..
Fifth. Because both bills propose to rehabilitate the Union Pacific corporation with power to ran the vast system, main line and branches, as it has heretofore done, discriminating against the development of one part of the country, breaking down its manufactories and building up others, suppressing the trade of one place for the benefit of anotEer, to the enormous profit and aggrandizement of its own company, andespecially the persons and parties in control thereof, and that for generations to come.
Sixth. We protest against the Government conferring upon the Union Pacific Railway Company, the Union Pacific system, or the Central Pacific Railroad of California, or any other corporation the credit of the Government to enable either or all of them to borrow- money at the rate of 2 or 3 per cent per annum, as is proposed in all the plans for their reorganization,
PUBLIC RAILROAD HIGHWAYS.
But gentlemen who recognize the force of all these arguments against the funding bill, and. against the funding scheme generally, are very much concerned lest, upon foreclosure- these roads may possibly fall into the hands of the G-overnment and become public property-
And gentlemen on the other side have studiously and adroitly sought to avail themselves of that prejudice by seeking to force the opponents of the bill to declare for Government ownership and operation of railroads,
Personally I am opposed to the Government operation of railroads, unless it shall finally appear that there is no other way to get rid of the curse of railroad monopoly,
I am opposed, to the Government engaging in business enterprises of any kind except such afi are necessary incidents of its governmental functions-But I am more strongly opposed to all grants of privileges or
immunities to citizens which enable them to exercise monopoly powers over other citizens, '
This latter principle is manifestly superior to the former, and more important, both as regards the Stability and purity of republican institutions and the happiness of mankind, 1 hold that no spec^l privilege should ever be granted or continued by government to any citizen or class or set of citizens, under any circumstances or for any purpose, and that it is the first, highest, constant duty of government to preserve and maintain the equal nghte and equal natural opportunities of all her citizens. Monopoly, in its very essence, is an invasion of the natural rights
^teSSeSt8 CTtortions' and is essenaally incon8is?ent
^'^^^^rwW^^^^^ ^eSro^^^^.^6^^^^^^^^
, But the public function should not be extended beyond the elini inafcion of the monopoly when thai- fm-^r nf+^n;- "
separated from the purely business S^ors t^,entel•^aQ uaQ be ^ r J " u&i.iiehb laccors. ii the monopoly tac-
15
tor ca ii not be so separated. I do not hesitate to say that the whole entprprise becomes properly a public function. y
TnP1 b'^ u^J r^Tt130^is in the "^ of ^.v and roadbed. Ihe mMncssot railroad transportation is not necessarily a mo-
nopoly, It is made such only through the absolute private control ot railroad highways, now generally permitted- Full and
tree private competition in transportation over public rauroad
highways is, however, perfectly feasible
If our public roads and streets were given over to the exclusive control ot private companies, as our railroad highways are we would suffer the same oppression and extortion at the hands of
such couipanies that we now suffer at the hands of our railroad companies.
They would prevent any but their own wagons from carrying freight or passengers on the roads and streets, and would fix their charges, not according to the value of the service rendered but according to the advantage which would accrue to the shipper or
traveler by having his goods or his person transported to the point of destination.
Manifestly it would not be necessary for the Government to go into the business of transporting freight and passengers in order to release tlie people from the oppressive power of that monopoly-In that case, the true and rational remedy would be to make the ownership and control of the roads and streets a public function, leaving to the perfectly free competition of all common carriers the reductions of freights and fares to the reasonable value of the service rendered in transportation.
The same thing is true of monopoly in transportation upon canals, and the same remedy has been successfully applied to that evil.
Why not make railroads public highways, over which all common carriers may operate their freight and passenger trains upon equal terms, and freely compete with each other for traffic?
There is no real difficulty about applying the public highways plan to railroading. This new kind of public highway, for the new mechanism of transportation, would, it is true, require more Government supervision than the old turnpike road, but not more
in proportion to its utility.
The roadbeds, including stations and yards, as well as the time schedules and movements of trains would necessarily be under
the absolute control of Government officers.
That would not be, even in the least degree, inconsistent with the private ownership o£ trains, nor with the free and perfectcom-petition of the independent common carriers operating such trains
over the same track. ,.,/-, ± — With locomotives and cars built according to Government regu.
lations; with time schedules fixed by Government officers, and with publicly licensed, though privately employed, engineers and
conductors subject to the control of Government^rJ^S^ and train dispatchers, in the movement ^ltr^ns'thes^^
.
ISSi
16
also stimulate improvements in train service and equipment, which Government transportation would probably discourage,
This recognition of what seems to be the true relation of public and private functions in railroading would immediately and forever solve the very serious railroad monopoly problem. It would avoid all of the difficulties and dangers involved in any possible scheme of Government transportation, while permanently securing to the people all of the advantages that could possibly, result from Government operation of railroads,
It would avoid any great increase in the number of civil servants of the Government, while entirely eliminating railroad influence as a factor in politics,
Under snch a system, the "railroad influence" would have no more to do with politics than would the county-road influence. It is the element of private monopoly (special privilege) only which now, necessarily, makes the railroad interests a factor in politics. Political power is now necessary and effective to maintain and extend the special privileges of railroad owners, and political manipulation is therefore an essential part of their business,
Eliminate the monopoly element and railroading will become and remain a perfectly honorable and fair private business, serving all, oppressing none, seeking no Government favors, requiring no Government interference with its charges, yielding reasonable profit to those engaged in it, and diffusing its advantages among the whole people.
This is certainly good Democratic doctrine, for it accords exactly with that most fundamental of all principles of Democracy, as laid down by Thomas Jefferson, "Equal rights to all; special privileges to none.*'
It has the merit also of being thoroughly practical. And, so far as I know, it ha^ the merit also of being the only practical remedy for the evil of railroad monopoly yet suggested which accords not only with the great principle of Democracy which I have stated, but with that other great though, subordinate principle of Democracy which declares that the only proper business of the public agency which we call t1 Government" is " to govern/'
We have not presented, and will refrain from presenting, any substitute or amendment looking to the permanent ownership of the Pacific Railroads by the Government; because we are satisfied that thia House is not prepared to adopt any such proposition and that its presentation would weaken rather than strengthen the opposition to the funding bill. The defeat of the bill is our first and principal purpose» In that purpose several elements are united that would be divided upon the other question-
We therefore prefer to postpone the issue as to the ultimate disposition of the roads.
Let the mortgages be foreclosed and the rights of the Government enforced in accordance with existing laws, and let the ultimate disposition of the roads abide the ordinary course of events in such cases or, if need be, the judgment of a future Congress,
0