, 1874-12-23

r,f ,nenS Sf special COMMITTEES as askea for by 'ae
9hls reso!utton. which was ,novoa by 155car1l;
ton, Of California, wis carriud BY u vutof -
.. ono moi voting. Tho Cisairnlan of t}V g.
mittcn, Phllotun Hawyer, OF Wiaoonain,F -, T.
Btruciod tn report thla roaolutton, toGatf :. III
sni u c ss2rt prts ad i senaa'i.'' Sossns3a o
DO kbn,itso;l nt IN carly tay. ! =
] roit r,tn ACTION or TIE cou,s.4 =
o aso FySn y sS ssGSst ~ ssS s%l%'?o IN ~ t Of
sfnors's: Tho discrimination OF lSoS fso ill.,
twcou tho Company md E : hoSorn-
aSs S1ss anu ana 'S obss:6ns ws a5is @ In:
posed OIL tho Company by its contract.
Tho Original acts relative to Tho pncitic nntlrnau
bear ato ,1an. 2, laGi with MI nn1ondmont, July
8, 1866. Tho CoNtral pncisic nai'road Conpn,y
Rccoptcd the oonitious Of theso acts by filing itu
assent ilt tho Department Of tho o1htorior Thoae
lnwb authorized tho construction OF u railroad
md Telegraph lMu from tho Missouri 1siver 10
tho Pacific occa,i, with certain branc, lines trou
tha lonlM ,ncridlsn. to lo completed by July,
ls1G. Tito tltlo Of tho corporation wag to bu tho
Union 1'aec Railroad Company. Tho Central
pGciiic Railroad Company wau
CREATED ul THE IAws or oAL!FonSIs,
antl derives ali pt itH powera from thu lawn Of
that 6lntn. NO corporate powora woyc conferred
upon 1t by tho duuornl Government. Certain
gsants Of lands aud bonds woro given 10 this
Company to facilitate tho construction Of the
roads. These Eranta weEe medo upou tho contli-
tions that tho Company Should lmy tho bonds Mt
maturity aud perform certain services for tic
Government. Tho central Pacific 1!ailroad Conf
psny rd,e. has fully ts tSompioa au,o w tos aw I
road md performance Of tia SERVICES
for tho Governmunt,> although tlR tmo 10 wllic!,
it's construction "aa limited has not yot oxWrcl.
Part Of tho loHd conetructod by tho Central
paoiilo laas for ucycra[ yoa:Abccn III successful
| aud profitable operation Tho earnings of Ito
road havo boon III follows:
:SG b,6s9, ,ae9
!5tV.. i,lI, ~
1911, 9.6l1nfa
4"s9aJt"1
Tho net earnings for 1879 vero %; ,6a9. It
| IL estimated that ,1utler tho law tho Company
| will recoiyo from tho Government
D,10O,000 AcEl:y,
Of which patents hnvo been isgnol to Jt,no 30,
| 1875 for SID J. H ncreb The Government Blbsidy
bonds, Including those Issued t" tl,o Western Ta-
bonds interest l.as been paid by tho Gov
ornment to tho amount Of f9,2I3, 900.
| Thoro haH been repnd in transportation BY tho
| Company IT, ,04o,000. Tho default Of the Com
],anY must bo considered with respect to tho it,
| tcroAt on tho bondB, and as to tho per contunl
| on the net earnings Of tho railroad. Az to tho
itorcnt on t4o bondn. 1t 1B wcll known that thero
GREAT DIFFERENCE OF OPINION
among attoIne;u aB to whether tho Company il
required by tho Law to pay the Interest OF, tho
bonds before maturity. Whet'1or or not te Con-
| pnry III in default by not paying tho interost
depends on ]cciDion OF the lego! question aB to
| their d,ltios under tho law. Five Eor centun, of
| tho mt earnings OF tho road Is required to bc
paid to The Government to be applied to thc
payment Of tho Gubsidy-boAda and interest. Il
is claimed by tho Connny tint 1t ia not iabo to
pay my rart OF ita earnings until the railroad
has beeil accepted by tho United States NJ com.
plo.cd This question iB legal onn, and
law hns alrcady bcon rnaeed requiring
tho Attorney General 10 bring suit against
thcAn roa<a for tho & per cent TIlis
suit Ia now being proBscd. As tho question oi
tlofaNl. in therefore in Process Of adjudication b3
the courts, It would lo uuwiBo to call OIL to in
yostigation to proceed wien the courtB arr
better calculated to mako such inyontiyntiol
thai any Congressional committee hs to tEtt
Withholding OF money duo to tho ronl On thu
trnuHnortation account, Congress has alrcAll.
passed II Inv directing tho Secretary of TIL
Treasury to withhold II, and permitting lilo Con
i tho right of tho hecrctary uf tho Treasury 80 II
do. Tl,o Cositral Pacific l!as alroRdy
DROUGHT SUIT IN TlIl: COURT OF CLAIMS
to test that question.
Thu report OF ihe Committee conc,utoa
After :. careful fnveatiEa.ior into tho charger
md allegations maln against the Central racllie
lsailtoad Company, in tho preamble aud resot1
ton presented July II, 1871, and submitted tt
this Committee. your Committee lind, first. tila
tho evidence submitted is insufficient TO enablt
lie Committee to dotorlnno tho truth or falAit,
t1ue. your Committco nro Of tho opinion TINT ti
remedy already IL found for Rl1 Tho matter com
plainod OF in tho courts unCor oxiating stntutcB
! where tho caECH nro now pending.