New-York tribune., 1870-12-20

In fru nv the companies the Government
,vorld he mt of pocket only tho ceded lands,
wbich-considering that 1t reserved each alter
nate section-woud be really less than moth
ING. The Roads in fact greatly Increased the
volne of the Governments lands, after de-
dnctinp the value Of those ccded to tho CON-
panies.
4. But capital could not be had on these
terms. The credit OF the Government was
low, it's liabilities enormous and increasing
and its very existence in peril. hence IN
1864, in order to induce mOneyed men 10 invest
In the work, and push it on to compieuoh'
Congress passed a second act, whereby the
companies, on specified conditions, were
authorized to interpose another mortgage OF
equal amount, ahead Of the Governments anu
tbus to issue bonds which, though not guar
anteed nor PAYABLE by the Government, were
in effect made available by the acton OF
Congress. This first mortgage on the foads'
backed by a second mortgage guaranteed py
the Government, insured the success OIL the
great undertaking, which was pushed 10 COM
pletion with extraordinary and unprecedented
rapidity. a.
s. The two roads, forming complete chain OF
iron from the Missouri to the SacraInento'
have been for year and half completed.
Their National ends are fully subserved. Daily
Mails are swiftly whirled across the continent
in either direction far cheaper than they couiu
be slowly dragged in the absence OK the iron
track. Oar Military posts in the wild new
Territories, thinly peopled, for the most par,
with rowing savages only, are quickly and
cbeaply reinforced and fed. Our miners en-
10Y an immunity from savage hostility that
hundred thousand soldiers could not give
them in the absence of these Railroads. They
obtain their supplies from the States" Ear
cheaper and more regularly than they could
do but for those Roads.
9. But the income Of the Roads-and espe-
cially that of the Union Pacific stretching from
the Missouri to Salt Lake)-is, as yet, made
ouate to meet their running expenses ana pay
the interest on their bonds. They have thus
far paid promptly and In gold the interest on
| their First Mortgage bonds but that on the
| bonds loaned them by the Government they
have hardly attempted to pay at all, except by
| the services rendered as aforesaid.
! 2. 1t Is now claimed on the part OF the
| Union Pacific (but not, 30 far "a we are aware,
on that of the Central Pacific that the interest
on those bonds is not due from tho Raitroads
until their maturity thirty years from the date
Of their issue respectively. That is to say: the
| Government must pay the interest semi-an-
pually as it accrues, and look to the COM
panies for reimbursement of principal and In
terest in lump from twenty-five to thirty years
hence! All that the companies arc bound to
pay thereon meantime is one-half tho sums
from time to time earned by them in carrying
Mails, troops, munitions, provisions, &c, fol
the Government. The other half the U. 7. de-
mands that the Government shall pay to 1T SO
fast as it is earned; and this half it Is now
after.
s. Attoney-General Akeman do mt see it
Being required to give an official construction
to the acts of Congress aforesaid, Mr.. A. hold:
the construction Of the companys lawyers
forced and unwarrantabe-holds that it i:
bound to pay as it accrues the interest on the
bonds loaned it by the Government; de
ducting, of course, the sums earned by il
in transporting mails, &C., as aforesaid.
, Such is the whole case, as fairly can stat
| It. We presume few disinterested persons vii
, doubt the correctness of the AttOrney-Gen
erals construction. We only add that before
Congress shall grant the companies any relie
} from the conditions of their bargain, we holt
it indispensable that their expenditures from
the outset be thoroughly investigated, and The
public well assured that they have honestly
and frugaly husbanded and applied the re
sources whcrewith the Government has sup
piled them.