The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-05-23
NEW YORK HERALD SATURDAY MAY 23 l874-TRIPLE SHEET

schools in Pennsylvania along Mason and
Dixon's line were free to both races, and black
faces were seen among the white children in
nearly every district school The public
schools were not injured there, and we do not
think that even with the Civil Rights bill they
will be destroyed in New Jersey.
Pacific Railway Legislation-somethi
Too Much OF This.
We have had many rumors from Washington
in reference to plans for reviving the subject of
Pacific Railway subsidies. We have not paid
much attention to them, because we have felt
that public opinion had made itself SO en-
phatic about railway grants that the
question would be adjourned to q more
convenient season. 1t seems, however,
that the Railway Ring has its mind
made up to o contrary view, and we have only
to remember the evidence of o former officer
of Pacific Railway, that he had paid half
million of dollars to influence legislation in
Washington and the recent developments in
Credit Mobilier, to understand how it is posi-
BILE for railway ring to affect legislation indie
pendent of public opinion. The precise shape
in which this railway business comes before
Congress is as o memorial from the
Northern Pacific managers and bill
from Mr.. Ramsey to carry out its pro-
visions. The directors of the road thus
present their case:-They have done. all
they could to build the road and would have
done so but for the Jay Cooke panic in Sep
TENDER The failure of their road would be
q national calamity because its bonds are dis
tributed among all classes of the people, "rep-
resenting the savings of the widow and the
orphan" and because an immense tract of land
would remain thus excluded from the blessings
Of civilization TO avoid this the government
is asked to guarantee the interest of new
series of bonds, at five per cent The govern
ment will indorse the bonds, and the company
will guarantee the government by giving as
security the enormous land grant it now
holds.
This is an ineligible plan, but there are
many objections to its acceptance. The panic
of last September would not have affected
the Northern Pacific if it had been on q sure
foundation. If it had been the enterprise Of
men who really meant to build road as
they would build house, to pay for it as
property and own it, there would have been
only temporary trouble But it was always
speculation, not serious business project
The men who owned it had paid no money
for the franchise, unless what was paid
to Christian statesmen for 'sinfuence" and
votes. They invested no money in its con-
struction, none, comparatively, considering
the greatness of the work and the amount of
capital necessary. They had simply the contin-
gent ownership Of valueless but in time, per-
haps, valuable land grant, and upon this they
were endeavoring to borrow money. In other
words, they owned nothing and were seeking
to convert that nothing into an immense and
valuable franchise by issuing first mortgage
bonds upon it at seven and three-tenths
per cent. Of course the panic struck it
reeling blow, for it was as the house builded
upon the sand, which went into deplorable
insolvency when the winds arose and the
waters came. We are panied to learn that
the bonds, illuminated and blessed by
Christian statesmen, arc largely in the
hands of working people, and now
represent the savings Of widows and Or
phans." But this is matter with which the
government has no concern. If it did, its
duty would be to redeem the Emma silver
mining shares, which were sold to thousands
OF English widows and orphans under the
patronage of the American Embassy in Lon
don. We should much rather, as question
Of public morals and credit, vote the public
money to redeem the Emma shares than to
make good the bonds of the Northern. Pacific.
more serious question is, What return will
the government obtain for this proposed en-
dowment? One road was endowed in Kansas
with lands and bonds. Yet it cannot pay the
interest on its bonds. The Pacific roads were
endowed with extraordinary liberality But the
men who received the gift divided it up with
needy statesmen like Colfax and Bingham and
Garfield, and pocketing bonds, lands, subsidies
and all, divided themselves immense profits
and left behind them q barren road. Here
was an evidence of government iberality, and
vet it was abused in a shameful manner. Is
there any assurance that the managers of the
Northern Pacific would deal more honestly
with the government? Would they really build
the road with the proceeds Of their guaran-
tsed bond, or, throwing together some kind of
on affair lasting until the government inspec-
tors had made their report, divide the balance
in dividends of eight hundred per cent as
Cakes Ames did with the Christian statesmen?
We do not question the good faith of the dis
tingushed men who offer. this memorial. But
business is business, we know, in railways as
well as in other affairs, and these gentlemen
endowment is granted we shall have the Credit
Mobilier business over again. There is no
guarantee in any feature of the proposed plan