Democrat and sentinel. [volume] (Ebensburg, Pa.) 1853-1866, 1856-04-30
VOL. 3. NO. "a.

tion viii be increased, IN nearly atwo-foid ra-
tio. 1t must not be understood that the Board.
in these remarks. intend to recommend an
abandonment Of any part Of the main line
The bill before the House gives the company
that power, by which they will obtain for 81
100000. property worth $11 ISL .275. If
the interests of the people along the line are
| to be sactifced by such a power conferred
upon an incorporated company, by Legislative
action, true economy would dictate the rojec-
| ton of the bill, and the retention by the
State of tho profitable portion of the line. and.
the abandonment or the other. Between
81, ,000. 900 and S5000.00 would accrue to
the treasury by the operation which would
otherwise 60 into the Golfers of the company.
| Tho Beard. entertaining these views. sus-
Ftained as they are by official facts. opened TO
the inspection OF every one, are. therefore, of
| the opinion, that the price proposed to be paid
| is not an ample compensation for the property
| and tax proposed to be-sold.
Are the securities for the payment Of the
purchase money such as q prudent regard for
the safety ofstle public finances Uould Justify
| the Legislature IN racceptingY - rr,
The second section of the bill authorizes
the company to issue SIS. 900, 900 of bonds.
bearing an interest of six per cent per annun;
81 500, 600 of these bonds together with a
mortgage on the companys road, finished and
unfinished, from Sunbury to Erie, and all their
real estate in the city and harbor of Erie and
elsewhere, are to. be deposited in the Office of
the State Treasurer to secure the payment-of
the purchase money-this is not required to
be first mortgage. Thesecond issue of ST.
500, 600 of bonds, is to be secured By first
mortgage on the canals and railroads pur-
chased faom the State-$4 600 900 of which
is to be placed in the treasury as additional
security for the payment of the purchase mon
ey, aud the remaining $500, 900 to be
thrown into the market to enable the company
to progress with their railroad All the secu-
rity that is here given to the State, 81 100000
In bonds and mortgage on unfinished
road for it will be observed. that, under the
second issue of 1880, 900, the canals and
railroads purchased from the Commonwealth.
may be sold to satisfy the holders of the S.
500, 900 of bonds. The works now owned
by the State may thus pass beyond her reach.
and she be compelled to rely on the first issue
and its securities for payment. If any exigen-
cy should arise in the finances of the State.
these bonds cannot be used unless at large
sacrifice. Would it then be wise, would it be
just to the people of the Commonwealth, to
part with a valuable and increasing property
for sum less than its intrinsic value, and that.
too, where the security is of such an uncertain
character? That is question presented by
the bill to the consideration Of lhe Legislature.
and by that body is must be decided.
The third section of the bill provides that
the tax on the tonnage passing over the Penn
sylvania railroad shall be collected and paid
into the State Treasury as heretofore, and
credited to the Sunbury and Erie railroad
company, on account of interest on their
bonds, until single track tf their road is
completed to the harbor of Eric. This would
seem to be an anomaly even in these days of
enlightened fnancering. The company de-
sire to purchase the main line at less than its
value Not content witn this, they must al
SO have included In the sale, at far below its
present value, a tax which is punctually paid
into tue Treasury. Or in other words, when
stripped of the terms in which the proposition
is couched, they ask the State to give them
the cash means from the treasury to pay the
interest on their own debt due the Common
wealth.
Would the taxpayers be reliered of any
portion Of their present durther by a sale an-
der the provisions Of ttis diNy
No sale should be made which would not
afford an affirmative answer to question SO
intimately blended with the interests of all
classes of our citizens. 1t is possible, how
ever, to discover any such an answer in the
provisions of this bill, should it become a law
in its present shape Their taxes would not
be reduced single cent. On the contrary it
has been shown by the statements in the pre-
ceding part of this reply, that the resources of
the treasury would be diminished by sale on
the proposed terms.
Is tie monetary condition Of the treasury
at SO toao an cob as to ,CdrrdRt sogre0t q sdcri-
flee Of inUested copitalf
The statements of the State Treasurer and
Auditor General communicated to the Legisla-
ture, exhibit the finances of the Common
wealth to be in as fourishing a condition as
they ever were. There is no prospect Of
deficiency in the revenues-no demand for a
resort to extraordinary means to sustain the .
faith or the credit of the State A sale for
the sum mentioned in the bill would not prac-
tically reduce the debt of the Commonwealth
1t would be, In fact, merely disposing of the
net cash revenues of the main line and the
tonnage tax, for the uncertain payment of the
interest on bonds of fuctuating, and at
present of an uncertain value-a sale of pro-
perty increasing in value for sum far less
than Its present value-a transfer of source
of revenue worth at the prevent time. in ono
case, 81 AL ,457, and in the other, S11, ,751,-
275, for 81 ,500, 900 ia bonds secured by
on an unfinished road, the whole of
which is not even yet under contract. Is
there any such an existing condition of the
Treasury would justify such sacrifice.
The board have thus frankly given their
opinion of the bill, ' as a measure of public
policy" and as the 'propriety Of its passage"
In doing so, they have endeavored to keep
within the requirements of the reso ution of