The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1866-10-27
OREGON CENTRAL RAILROAD.

We have before us tho Report of the
Special Cor,mitteee to the Legislative
Assembly, on the Oregon Central Rail
road We learn from this Report that
grant of twenty sections of public land
per mile has been secured, from Congress,
to aid in constructing line of railroad
from Portland, Oregon, to the Central
Pacific Railroad, in California. But, uu-
der present circumstances, says the Re-
port, the land is not available for the pur-
pose of raising money; one of the grant
conditions being that twenty miles of
railroad must be finished and put in OPP
Grafton before the Government patent will
issue for the land. 1t is assumed that it
would be unreasonable to expect the Fed
eral Government to construct our works
of internal improvement, without the
least effort on our part, And the Com
mittec give it as their opinion that it is
bCtlCI lOI lLC pldlC W iCFu HSI ulu W INC
enterprise than to rely on the uncertain
aid Of private individuals. The Commit
tee advise that the Legislature levy and
whenever a section of TWEEN
ty miles of railroad is finished and put in
operation, sum of money sufficient to
pay the interest on another S500,000 of
the company's bonds, and so pay this in
terest for twenty years; and also loan the
company the sum of ten thousand dollars
for preliminary contingent expenses; the
whole amount to be secured by mort
gage of all the company's property to the
State, and to be returned at the expira-
ton of the twenty years, then this com
gany agrees to proceed at once to the
work of constructing the road.
We shall not, at this time, say whether
we endorse or reject this proposition. 1t
may be n good and wise one, or it may
not We have not reflected upon it sufii
ciently to enable us to give a decided
opinion. But some of the statements by
which the proposition is attempted to be
sustained, are incorrect; consequently
the reasoning based upon them is un-
sound. For example, the report asserts
that sin 1852 the State of Illinois issued
its bonds to the amount of 1900, 900,
taking therefor stock in the railways pro-
jectcd in that State; and although the
annual interest on this vast amount of in
debtedness amounted to $40, 900 annual
ly, yet such was the rapid increase of
property on the tax roll, that it was not
necessary to increase the rate of taxation
to pay it. The revenue from taxes on the
increased value of property occasioned
by these railroads, has already enabled the
State to pay off more than 100000 OF
the principal debt"
The sl2 900 600 bonds above referred
to, were issued by the State Of Illinois,
not to aid in building the railroads that
now exist in that State, but to build a
system Of railroads projected in 1886 1t
/ is untrue that Illinois owns stock in her
railroads. They were built with the pro-
ceeds arising from magnificent grant Of
land by Congress. These lands were
ceded to a company of capitalists on Ger,
tain conditions, one Of which is that
seven per cent. of the gross proceeds oi
the roads shall be paid into the State
treasury; and it is this money, instead ot
that arising from taxation, which is can.
ceiling the old public debt of Illinois
and which may pay the debt she has in
CURED by the Civil War.