The New York herald., 1869-06-28

these several together ana they give $40 per
mile as the actual cost while the company receive
So voo per nile from the government Inc ie.sso
does not include allowance for rolling STOCK, tee
graph, &C.; but deduct $4,000 per mile Tor TINS par
pose and there remains s9 $40 per mile. Ss add 10
aeducting $500 per mile to Be expended for te e
graph, rolling stock, &c, making the whole allow
snGe 70 be used ior such purposes slZ per d e me-
S9s40 together ana It will show surplus OF 800 9l0
per mile above the cost OF the road. rhis result WIN
whether the members OF the company paid anytning
out OF theirown pockets to build It.. But take the
1855 miles furnished IN government ponds TO wit
$2o,475-and who doubts but this OF Itself should be
suficient 10 build and equip the road and CONSTRUCT
line OF telegraph and there 10 still lett $4,000 per
mile in mortgage bonds Ia the hands OF the COM
pany making in all $34 600 for the whole length
or the road, 1855 miles. These figures are drawn
from experience and reason. The exact amount
made by the company will never be known, fer 1t
WIN never be to their advantage that tshoud BE- Inc
ernment every alternate section OF land on each side
OF the road for twenty miles, aggregating for the
i will be somewhat less 390o 500 acres, or l2e00
&C es per mile, which at So per acre amounts TO
bonds, and ' we nave sum total % % Of s75 100
enough 10 make seventy-five individuals million
aires. But throw half Of this away and you have
nearly thlrtyeight millions Of profit left for dlstri
button among few men, TO say nothing OF capital
stock. am SATISFIED my estimate Is low.
Divide $53, S72, the whole amount or govern
ment bonded debt on the two roads, by 1875, the
number Of miles from Omaha~to Sacramento, and 1t
gives $40 907 as he average government subsidy per
mile. Add To this the same amount Tor mortgage
bonds, and 1t VIII show the whole average bonded
debt OF the road to be $780, per mile or $lo6
IN ALL upon which the government hos only second
lien on half the amount 500, 1882. Upon tue
main road and branches inclusive, IL has u second
lien for 1872, furnished in bonds, bearing six
per cent interest. 1t is an easy thing to create
public debt but not easy pay 1t out OF the labor
or the producing classes, who have to pay all pub
Tic debts, and not the millionaire.
The Union Pacific Il know nothing OF the Central
Pacific In this regard) has provided for Issuing
$l00, 900 OF capital stock, aud has actually issued
about $4,000, 900. This stock has been selling In
The market heretofore at seventy five to eighty cents
on the dollar. How much 1t IS worth now am not
advised. How much IT will be worth when 1t Is not
held by those who mold the controlling power over
the road, intelligent men can Judge.
REHABILITATION.
Railroad companies TO the people, DR..
For $685. ll5,S72 Of government bonds.
For S53, lie, S72 OF mortgage bonds
For So, 334, ,962 interest paid for their use.
For $50 O477o56 for %. 492 1862 acres public lands.
For Sl00, 100000, amount of capital stock au-
tnorlzed to be Issued on the ABOVE basis, about
twenty or twenty-five per cent OF which Is In the
hands OF the public.
For income Of said roads.
For the railroads themselves, t1 rolling stock and
all property OF every nature and kind connected
herewith
The people to the railroad companies, Dr.
For the privilege Of riding over said roads by pay
ing for II.
The amount realized for the capital stock, whether
twenty-five, fifty or one hundred millions, Is so
much additional gain to the company.
So the companies have the bonds. $loe, 23l, IA
the benefit OF S3,334962 In trust paid for them by
the government-tbe capital stock amounting to
as above stated, $780, 600 900; the lands 500 056
proceeds OF %, 352 acres and own the road and
all the properly connected with 1t besides. This Is
what is called III this country the enterprise OF CAPT.
tai and Its investment for the public good. 1t may
be o misnOmer.
II Congress made bad bargain am not for re-.
pudiating It, / think however the government
should project it's Interests by avaing Itself Of oil
reserved rights, and insisting upon rigid COM
pliance on the part Of the companies with their
gagements before anything more paid or the lands
patented. There is certainly nothing wrong in this.
The right to pass the roads, such they are,
by paying for 1t Is all the people Will get for the
enormous amount they have been compelled to con-
entltIed to have rst class roadn s.ln ali respectsh
that they may be assured Of life and limb. Unusual
care should be taken in operating this road as well
as IN constructing 1t, for II serious calamity should
happen to passenger train, 1t would be almost I'M
possible TO obtain medical aid and proper shelter for
the wounded, so sparsely is the country settled.
l VIII add, In conclusion, that on my return to
Omaha was shown a prepared report, gotten up by
"a oilicer ot the company. on the first section OF
section, setting forth 1t was constructed in strict
compliance with law, and was told that other simi.
gress OF preparation; that such was the accus-
TONED way for reports TO be prepared for Commls-
sloners, and then they signed them. Not being
satisfied that could, without violation Of duty,
adopt the usual form ana sign such paper. have
prepared this report for myself and as expressive OF
regret being compelled to go over the road with
OF the time the Commission was to meet at
Omaha growing out OF an unexpected delay IN In
structions. sho9ld have been highly gratihed to
have accompanied General Warren and Hon. James
+. Wilson. AS that pleasure was denied me was
obliged TO perform my duty by making the necessary
sung either OF these gentlemen before this report
was prepared was aforded me. l therefore submit
1t for myself Most respectfully,
MAY %, 1869.