Cleveland daily leader. [volume] ([Cleveland, Ohio]) 1865-1873, 1866-05-02
THE NORTHERN PACIFIC RAIL.
ROAD.
Remarks of Hon. II. p. SpaldiDg In
House of Representatives, April
25th, 1850.

ScSSasHOh hSaihSb LAhb SAdut3 ~ 0O INV
against charging upon the Government
liabilities for money in the shape of inter-
est upon stocks to be issued by this organ
izatiOn. l considered it an association
contrived for stock-jobbing purposes. But
my words ofadmonition were not needed
that bill became q law, and thereby the
United States, L the language of my
friend who has Just taken his seat, (Mr.
Delano,) were virtually robbed of forty
seven million acres o lsnd.
But it is said on the n side that this
grant consisted of poor land; while on
the other, when it suits the parties better,
it is said that these lands were the most
fertile o. the West, and of a value almost
i~ncalculable.
Mr.. Speaker, l hold in my hand a re-
port to the Boston Board of Trade last
autumn, at the instance of these corpora
tors, to show the extent and quality of the
grant which the Thirty-Eighth Congress
madeto this corporation. And it consists
of a certificate over the signature of gen
tleman who has for q long time admins
tered the duties of the General Land Of
fee, who was for q time one of the active
managers of the Illinois Central Railroad
Company, and who now is the efficient
Third Auditor of the National Treasury.
I send to the Clerk and ask him to read
for the benefit of this House in his audible
tones of voice the opinions of Hon. John
Wilson in regard to the value of the land
grant now held by this association.
The Clerk read as follows:
al have not the figures, nor would l
be able to work them up if l had but
comparing this with the Illinois Central
railroad grant, l think it would be q small
estimate to say, that if this grant is prop
erly managed it will buildthe entire road,
connecting with the terminus of the
Grand Trunk, through to Puget sound and
head of navigation on the Columbia; fit
out an entire flee. for the China, East In
dis, and coasting trade, Of sailing vessels
and steamers; and leave a surplus that
will roll up to millions"
Mr.. WASHBURNE, of Illinois. That
pamphlet is put out in the interest of the
company.
Mr.. SPALDING. Yes, sir; it was
made for the purpose of obtaining stock
in Boston, at the hands of the capitalists
of that city.
Mr.. LYNCH. Will the gentleman al
low me to ask him a question
Mr.. SPALDING. Not now.
Mr.. LATHAM. That was made for
another purpose.
Mr.. SPALDING. 1t was made for
another purpose; the gentleman is correct
in that. It was made for the purpose of
inducing confidence by capitalists in the
stock of this company, and induce them
to invest their money in it.
Now, 1 do not design to impute any
improper motives to the Third Auditor
of the Treasury, far from it. 1 believe
he was expanding his best judgment upon
the question then submitted to him for
his opinion, for he proceeds in a portion of
his letter TO describe these lands, their
quality, their location, and everything
about them. And he thus concludes by
giving his estimate of the grant made by
the Thirty-Eiehth Congress, assuring the
capitalists that if these lands are judic-
iously managed, they will provide the
means to construct this road from the
Grand Trunk in Canada to Puget sound
and the navigable waters of the Columbia,
and in addition to that, fit out q feet of
merchant vessels and steamers for China
du0 LAO Ldo 4ANACG1 Il a mai u 1CAl VI
/" millions of dollars"
Upon this munifcent grant a company
springs up-recognized, they tell us-and
asks US to do, what2 Why, in the face of
a present ascertained Indebtedness on the
part of our Government of nearly four
thousand million dollars; in the face of
the taxation now imposed upon our peo-
pie to pay current national expenses and
the interest upon the national debt, we are
asked to pay interest upon the bonds of
this company. To what extent, sir 2 The
sum total of the amount upon which the
government is TO bind itself to pay inter
est at six per cent. per snnum is S57,420,-
900. One years interest upon this amount
is So, 445,2 200.
But, say the advocates of this measure,
the Government will never be called upon
to pay the whole sum. When the first
twenty-five miles of the road shall be COM
pleted, then the amount will be estimated
at an average rate, as stated here, of
S3l, 900 per mile, making for the twenty
five miles S707,50 on which the Govern
ment is expected to pay interest. When
the first twenty-five miles are completed
the bonds are to be issued and the indem-
nifty by the Government is to go into eff
feet. At that time the interest upon this
sum for the first twenty-five miles will
amount to S47,s5O, which is to be paid out
Of the Treasury and SO IN from the first
twenty-five miles, and another, and an
other, until the road is completed.
But it Is claimed by the advocates of
this bill that the Government is here offer
1a-r~NnEn anlvnrN- e. ~
liability. Security in what way? The
company will give Us, they say, as secu-
rity, one half Of their lands-all their
lands lying on one side of the road. The
other half they reserve for their own pur-
poses, speculative or otherwise. 0ze half
of our liberal gift to this company they
give us back as security for the further
advancement in the shape of a loan Of the
national credit, upon which we are to pay
interest, as upon bonds, for twenty years.
Now, l am willing to take the chairman
of the Pacific Railroad Company at his
word. For the sake Of argument, l will
admit all the great practical benefits
which it is claimed are to result from the
construction of this road. l will admit
that q portion of these benefits will flow
IL hPOh any " POOPAOj IL 10 SlhlLucu
that all along the route from Minnesota
through Lake Superior and all the great
chain of lakes, eve to New England, the
benefits resulting from this great national
work must flow in most c~opiously. 1 will
go further and admit, if you please, that
SO soon as the first twenty-fvem miles of the
road shall have been completed, and it
shall be ascertained that the company can
stand upon its own feet, they will not call
upon the Treasury for a dollar. I say
that, even admitting that not one single
dollar may ever be taken from the ma
tional Treasury by reason of this under
still 1 say the weight of the argu-
nent is against any such proposition as
hat contained in this bill.
Sir, we cannot assume at this moment, |
behalf of the Government, liability
IF S57, 900, 900 without shaking faith in its i
responsibility and integrity. Why, sir,
one Of the first lessons which we learn in
Dur school-boy days is that "money is
credit and "credit is money" So long
IS our nation preserves its credit it can
command money. But, sir, if you heap
lpon the Government, the organ of the
,ofio7 Iiobi1itr imam labiEfra 80, 1