The national Republican., 1869-06-29

premises. lie has no authority to force the
companies to return bonds which have been
paid to them, and Il is not at Az likely they
will stand 10 much fear NJ him. There is, how.
ever, remedy for The luyernuent which will
be subsequently poipsed out. AE
There ~ ys,i stfsrs.So between rs i ss,sins g
peiisd 10 compete with Eprppesn ueos q
ss S.ss 'Is so Isias I, 80 ~
ished, for a partly finished tesd, Z PVT into
| use, acquires a reputation whhh II will take
years 70 correct. SO much has been ssid And
ptived il Of even what credit Il Is entitled to.
We must have a road to the Pacific, and this
line Of country for 1,Os0 miles, as far as trsy-
eled on II, which for feasibility of eonstruo.
ton, considering rs Iehsth, I. unequsled IN
is;sfysns. % I FIN sr.sSlsia! ssIisy sdS f"i.,
ley, plateau alter plateau open upon the eye
s.rr 'esss sfs ses rr a.: v
ne Bisss hii!s he wi9 see very ,lSht cuts
pSuntains are reAehed, they DO not l!ke She
mas, bat valley open bst<eea them, auIffh fhcse
valleys are Away re ashed and deseeaded by
,ollowing the easy grade o. some s,tefp. !
thing like heavy cutting "a the whole distsnce.
II n, almost one continuous natural ro.sibed.
o,rs,, HE issm sh, yhisa have Isst stated, and
n
part Of my report asmshd I'd of the conpsny
.hIst class road I'm, all rtspeets.n 4 will,
hoNsyer, siste other. bearlnk Iop. thu same
mark that the 9ovsrpment shesM kssI, its
pany 70 keep faith VIII u. II promises are to
ernment, not those ofths eonpsny. FSS1
The charter Of the eoonpsny,providsstha
the Government bonds should be 3 frat lien
th.n e,srv .ta,nat. ..a,i. ~ 4. "a ~, ~.
miles on each side OF the road should be given
And that payments Of bonds should only be
made when forty niles were flushed. Nopsr.
mission WAS conferred on the company TO hsue
nortgsge bonds Al ALL In this case, As In sim.
lisr ones, the company went back to Oongress,
not to surrender any right they bad acquired,
ditionsl grants and privileges. They ssh that
the Gofernment bonds be made . second lien
on the road and that they De SLOWED TO issue
SSa sSa ss.s ssst e ssss.
issued BY themselves, should be the hrst Hen;
that they should have every slternste section
rosd, instead OF ten, aud that ssey shssia =.
ceiSe bonds when each twenty miles Of road
vas done, instead Of when eseh forty. The
try, granted their request. The resnlt viii be
q sale OF the road on the compAny's mortgage
bonds, which are = brst lien, and the Govern.
ment willSet nothing unless 1t pteyents itself
being made party to the proceedings, and
thus forces asettlcme ut or compromise II, " hieh
however, would amount to little or nothing in
the end, ior u would yield everything 10 the
Ten or hfteep millions Of the company.
mortgage bonds win fall into the hands OF
| est will not be paid, the bonds will be fore
closed, and who Il to bid against the holder OF
them, representing, as he will, powerful
cannot do II. Ifit owned the road ninety per
| tent. Of its earnings would be stolen, and II
would soon run down: No Individual will
Government will lose the amount OF her
bonds, the holders Of the ms dor part Of the
mortgage bonds, who " III not be uhtewd eApi.
talisls but unsuspectinE widows and minors.
viii lose IRON my to seventy hyc per cent. on
| their bonds. because they viii only receive
upon them pro rata OF what the road sells
ior ! am only writing here the experience
and history Of the past, and what interest
prompts men to do. Whether the present
company operate the Tuad or not (mAny be
heve 1t 10 not their purpose to do SOY the
result will be substantially the same. The
great object will be TO get clear OF the Govern.
ment lien by foreclosure aud sale under tho
mortgage bonds. This VIII be done unIess the
Government, as have already suggested, re.
fuses to allow itself 10 be made party 20 the
ehAnceTy proceeding, or unleAs the sugKestions
contained In the following paragraph are
to the whole country. ....r 90 Z.
The amendatory act of July ?, 1894, sub.
ordinates the Government lien secured to
psny. T6e twenty second and lat section
OF that act declares "That Congress may
At any time alter, amend or repeal this Aot.'
The words "h any timer may, pefhaps,
| be regarded as subject to some limit alto
The Courts might hold Il even doubt this) that
this sAlutsry protective clause would not ap.
| ply after the completion OF the road, or more
certalnly after its acceptance BY the dovern.
| ment. Before that time there IL no question
but 1t follows the mortgage bonds wherever
| they go. No matter In whose hands tho DO nds
are found the plea that they are held by limo.
| cent parties, SO often interposed, cannot avail
| The purchaser is bound to take notice OF the
law which constitutes part OF the condition
| Of the bonds as much SO as II 1t were Written
upon their face. The road 10 not completed,
| nor anything like Il, and the power 10 yet 10
Congress $ to protect the 9oysrnnent. INT.
Government bonds sh ouid be restored TO hrst
| lien as they stood In the original charter, and
, the 1.r,ssss sS bond, % OF the eoTPsny should be
| done all csvil and dlitleuity With the eompsby
| will be at end rne Government has supplied
road, .nd Why should u be given awsyI What
| moral or equitable right has any set OF men to
IL The money OF the people built II.
| The provision In the Amendhtory act grant.
| Ing an extra quantity OF land should also be
| repealed or suspended until the road is con-
suueted as required by law. At least an .op.
| TO ttsnspire before smother dollar 10 paid to
| the company. ... ..r "
whileit cannot be regarded that Congress
ssoiatIcn S SsprepeS p%ps iotS 20 ,ss
authorizing the President to Appolnt 4 com
| mission OF nve to examine the whole road
anst the subsidies had been nearly all paid
| that Tesolution must bo treated as An ex
pression OF Congrsss that II did not regard
any part Of the road as finally scoepted. l,
| may be that body was looking to tho restora
tion OF the Government lien by Its action be
/ fore 1t was pFeclIded from doing so by Iapst
Of time. The title of the resolution would
seem to establish this conclusion. 1t 10 a,
i follows:
"Joint resolution for tho protection OF tn
| interest OF the United states In the Union Pa
i cthc Railroad Company, the Central PaclhC
| Railroad Company, and Tor other purposes"
| The 'inteTesi' OF tho Government Ia now
| attracting attention, and II is to be hoped that
consideration will be suiiicient to lift railroad
matters out OF tho groove In which they have
| been running. Something for the people and
not everything for corporations
| II the subsidies should he all paid and the
lands conveyed now, the railroad companies
| would have no Induce mont to go on and nnlsh
| their roads. On the con ntTSry, II would be Tor
their interest to keep them only In pasIabic
| running order, even " they Intended to operate
| them In the future, untilt the sale 10 N sde on
| aportion OF the mortgage bonds aud tho Gov
| ernment lien eItinguished, for the reason that
| the worse condition the road is In the less II
| will bring. The temptation to do this 10 too
| great to be resisted. Wiping out an encum
| brance OF some hfty.odd millions Of dollars
on the roads when Il can be done 6y short
| chAncery proceeding 10 an advantage railroad
| gentlemen will not be slow to see and avail
| lHt pfActlcc Ol tONttuultHt
and communities furnishing the means to
| build railroads, and then Allow those who
take the contract to build them, tfOT that 10 all
| II is) without Investing a dollar OF their pr.
| VHte means, to own them after they are built,
10 not 4 very wise system OF nnSnciering on
the one hand, but excessively shFewd Oh the
| other.
There 10 still another and more powerful
Argument why the railroad eompAnies should
| be held to the s'rictest letter Of the contract
,ud receive no more special hvofH
| fhey Aro not rele lsed from the pro
vision OF the sixth section OF the chnr
eF, which requires them TO pay ,.
maturity the principal aud Interest Of tn,
Government bOndsi Only from the provision,
Of the NTH section, making the bonds a nrs
| lien.
The following statement will show N.
amount OF bonds issued on each mile OF tn,
| road, or to be issued
| UNION PACIFIC.
| The eastern base Of the Rouky mountains wal
| axed at point 525 7s-l,OOO miles west 0
625 $4,000 miles at tlo.OOO........ sstOi,2
"a va 1000 o. 90 OSS'..'' '..,,... 10 5S;Y 30
l,OVl IWt. s2iyyS, 10.
| from thr 900 mile post 10 PTomOn.
tery SuInmit, AdiItA1oe of 50 miles,
boLds have not becaf issuad,
neitEer has 1t been decided AS to
| which company will be entitled to
receive hen They would amount,