People's Pilot, Volume 5, Number 46, Rensselaer, Jasper County, 21 May 1896 — “AN OBJECT LESSON.” [ARTICLE]

“AN OBJECT LESSON.”

REPUBLICAN PAPER MAKES A FEW SUGGESTIONS. Not Surprised That Coxey BUU Find Favor Whoa Corporations Secure Loans From the Government—The X Kay on Some Corrupt Deala Dispatches from Washington announce that “the Pacific railroads’ committee of the two houses of congress will in a few days report bills granting an extension of fifty years to the Central and Union Pacific roads; the payments for the first ten years to be $365,000 per year; for the second ten years, $500,000 per year, and thereafter, $750,000 per year, until the debt is paid. The principal and interest is to be refunded at 2 per cent interest to he paid by the roads to the government. The roads are to have credit for the amounts in the sinking; fund and the bond and interest account in ascertaining the amount due the, government.’' An’ faith here is an “object lesson.’ 1 The Central and Union Pacific railroads owe this government large sums of money and their debt is due, secured by bonds or mortgages on these railroad properties. This government, the people through their representatives, deliberately propose to renew this great debt, or virtually make a loan to these railway corporations for the amount of the principal and interest due, for a term of fifty years at 2 per cent interest pei annum, requiring payments each year as stated above. Now, we do not particularly object to the rate of interest charged or terms of payment agreed to but simply suggest that this transaction might be taken as an object lesson by the people. There are those who might ask why others besides great railway corporations cannot secure loans from the government upon similar terms. It is quite probable that when th* people look at this transaction thejl may be led to think that it is no wonder that Mr. Coxey and others are advocating very similar financial schemes in the interest of the general public instead of solely for the benefit of railway corporations. In the case mentioned above the gov> ernment takes the bonds of the railway corporations and extends the payment of debts due for a term of fifty years at 2 per cent interest, payable in installments as noted. Mr. Coxey proposes that county, municipal and other public corporations issue bonds and that the government issue, or loan, to said corporations money at a cost, or interest of 1 per cent, and that those corporations pay a certain amount of their obligations to the government each year, cancelling the entire debt in twenty-five years. The railroads by their agreement, havd fifty years’ time to pay what they borrow, paying certain fixed amounts each year for the first ten years, other fixed amounts for the second, and for the third and other ten year periods. While there is some little difference 'between the two plans, yet they have certain features in common and just as long as the people, through their representatives, continue to make such contracts with certain private corporations no one need wonder that the people listen to and indorse such propositions as Mr. Coxey advocates. The debt due the government from the. roads named was created by a direct loan of the government’s credit to the private corporations the same as Coxey asks for a loan of the government’s credit for public corporations. These private corporations defaulted in their payments and instead of being brought into court and forced to pay, or their securities sold to the highest bidder, as in the case with individuals and the debts they chance to owe, renewals are given as noted above. — Evening Press, Carthage, Mo. (Rep.)