The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1871-01-03


knife of murder, the infamy of nameless |
crimes, and once every week or so the ghastly
horrors of parricide and hild-slaying, that
curdle the blood of the decent world, they
would surely shrink from the awful responsi-
bility of offering their friends what is at best
useless and burdensome, and at worst per-
dition.
The SO. called hospitality of New Years D ny
is becoming an evident abuse. The custo
has passed in Europe into formal inte =
change of cards. There is much that is plea
SAINT and cordial in the American habit, but if
its abuses cannot be reformed the alternative
will be taken to ''reform it altogether"
THE PACIFIC RAILROADS AND THE
GOVERNMENT.
From the " y. Times
Mr. Boutwells viglant guardianship of the
Treasury has brought to light one purpose of
the Pacific Railroad Companies, which, though
often suspected, has not been till now
avowed. The conduct of the Government
towards these companies has been marked
by profuse liberality. 1t aided them witk
land grants in extent exceeding minor
principalities of Europe, and with bonds
amounting in the aggregate to more than
sixty-four millions of dollars. The lands
given, properly managed, should realize
more than the cost of the roads. The bonds
are an advance, repayable by the COM
date--the Government being responsible to
the holders for the principal when due, aud
for the interest as it accrues The liberality
of the Government did not end here. Origi-
naly, it's bonds constituted first mortgage
upon the roads, their equipment and lands,
but subsequently the companies were allowed
to issue other bonds, constituting first lien,
and reducing the claim of the Government
to the grade of a second mortgage. More
munitcent assistance was never rendered to
any enterprise; and the least the companies
can do in return is to promptly repay the
interest paid by the Government in their
! behalf
Instead of fulfilling obligations thus in
! CURED, the companies are devisng methods
of evading them. The interest paid on the
! bonds has to tins time amounted to IS, 3d.
! 345 40. The sum repaid in the transportation
! of troops, Government freight, and mails. is
! All 1895. The amount due the Govern
ment on the interest account is, therefore,
not less than $G,397, S51 "a, and every half
year increases the figures. Are we to infer,
! then, that the Pacific Railroad Companies are
not able to meet their obligations Are their
roads so unproductive that the taxpayers
must semi-annuay contribute the interest on
sixty -four millions to avert from the compa-
nies financial discredit? Nothing of the kind.
The companies themselves do not plead
poverty-they publicly advertise their
chosen not to pay the Treasury what they
owe it. For time they took no notice of
4 applications for payment-they even claimed
an amount as due for services rendered to the
Government. Mr. Boutwell,, however, has
not only firmly refused to allow the Treasury
to be further vietimized, but has insisted
upon bringing the matter to an issue by re-
ferring to the Attorney the question
of liability. Compelled to define their posi-
tion, the companies have thrown off disguise
and set up plea of non-liability for interest
except to the extent of one-half
the sums earned by transporting troops or
mails in the service of the Government. Aud
lawyers of repute furnish an ingenious but
a far-fetched and, in the main. technical
argument in support of the plea. 1t is case
of hair-splitting to enable the companies to
throw on the taxpayers a burden which, in
the judgment of the public, belongs to the
roads. The opinion of the Attorney General
sustains MIR. Boutwell,, declares the CON-
panies liable for the interest as it becomes
due, and suggests means for protecting the
Government from the fragrant wrong oontem-
plated by the companies.
There is no disposition, we believe, to look
grudgingly upon the muniicence with which
the Government hastened the construction of
the Pacific road and its branches. The work
required encouragement, and the country
rendered it without stint. The liberality
which gave success and prosperity to the
companies interested should have called
forth some better return than an attempt to
evade an obligation concerning which ne
doubt has heretofore existed in the public
mind. What holes lawyers eye may de-
tect in the legislation upon the subject is q
matter of small moment. The equity is
clear, and according to the Attorney Gene
raj so is the law, The understanding
has always been that an advance
of upward of sixty-four millions in money, in
, addition to a vast territory and most valuable
privileges, formed the measure of the succor
, afforded by the Government 1t was enough
that the Government loaned its credit for the
: principal, and made itself responsible for the
, interest Sc long as the companies were unable
, to meet it. That stage is passed. The com
, panies boast of large earnings in excess oi
' current expenses. They are, OH their owr
showing, able to repay the interest that hes
been paid on the bonds issued by the Govern
ment for their benefit.
o Unless the Government can enforce it
claim for repayment, the effect will be tt
/, swell the Treasury advances, in thirty years
= to an amount far exceeding the value of tn
r roads. Assume that the Government mus
t go on paying the interest for that period: tn
! amount which the companies will at it's OK
o piration owe will be, as Mr.. Akerman says
@ ''rearly treble the principal of the bonds.
+ While the Indebtedness of the companie
r continues thus to increase, their assets becom
n less. Every acre of land they sell lessons tn
Y security of the Government for the eventuG
10 payment of its debt. This oonsideratio
1f alone would seem to be conclusive. Ther
"a has been gross recklessness in the railroa
r legislation of CONGRESS- but we are not pre