The New York herald., 1868-08-18
THE CENTRAL PACIFIC RAILROAD AND ITS SUBSIDIES.

SAN FRANCISCO, August l, 1858.
The silence OF the Eastern press in regard to the
transactions OF the Central Pacific Railroad CON-
pany Is very remarkable, in view OF the magnitude
Of the c0mpany's operations. On this coast the
political and moneyed influence OF the Central Pacific
Railroad Company Is so great that our newspapers
either endorse or preserve an humble silence In
respect to every act OF the company This company,
In connection with two other wealthy corporations,
controls almost absolutely our elections. In fact the
members OF Congress from this State and the State
Of Nevada represent these corporations rather than
the people. Through the press aad by the assist
ance Of sub0rned politicians the magnitude Of the
undertaking and the cost OF the construction Of
the west end Of the Pacific Railroad were 80 sys-
tematically exaggerated that Congress was induced
to waive the right OF the government to the secur ry
Of first mortgage for the bonds issued by 1t and 10
permit the company to issue preferred bonds to an
amount equa ling the government 5ubsidy-a privl-
ege which at once converted what intended to
be government loan into an absolute GIFT, for no
pany, Is silly S enough @ to to s think that as is conn conn
pany viii ever redeem the bonds issued
o the S road. Not satisfied with this forfeiture by 4e
government OF all security for Its advances the COM
pany, through its representatives at Washington IN
duced Mr.. Lincoln and the Secretary OF the Interior
to locate the loot OF the Sierra Nevada mountains at
a point about twelve miles east OF Sacramento city,
under which ruling the company received govern.
ment bonds at the rate OF $4,000 per mile Tor the
building OF forty miles Of road over country as "a
v0rabe for the construction OF railway as the aver
age OF railroad routes In the United states The tr
picaon Of the mileage subsidy was clearly Intended
TO apply only TO the heavy work OF those sections of
the road crossing the higher mountain ranges: vet
this triple subsidy has been paid with its compile.
ment or an equal amount In preferred bonds for the
construction OF long sections OF road over a com
parativey level country. The road IL chcaply con-
struced and built as fast as possible the mile
age subsidy. The work is principally done by China
men, working FOR eighty cents per day and finding
themselves notwithstanding the fact that the high
price OF labor In California was made q special pre-
tence TO enable the company to obtain q favorable
consideration Of their demand by the authorities at
Washington.
Leaving out OF consideration the immense grant of
public lands secured TO the company, the stock SUBJ
scrpton or &550000 by the counties OF Placer and
Sacramento ana the guarantee by the state OF Cali
forna OF seven per cent per annum $4,000 900 for
twenty years, and considering only the GIFT TO the
company OF s40000o In gold by the city Of san Fran
CISCO the national subsidy and the proceeds OF the
preferred bonds the company has received thus far
more money than 1t has expended in tue construction
OF the road.
II retrenchment Ia the policy at Washington, here
IS an opportunity to economic and be Just at the
saIne time. There is no danger that in making the
subsidy subject to the clear intent OF the law the
completion OF the road Will be delayed. The endow.
ment Will still be 30 magnificent that the race be-
tween the eastern and western companies TO obtain
the largest share Of II viii DO vigorously main
taincd