The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1875-11-04
RAILROAD ROBBERY.
Millions Of the Peoples Money
Squandered Upon Rascally
Corporation.
THE UNION PACIFIC SUITS.

Times Cf yesterday says: case OI unusua
importance was argued on to-day in the
Supreme Court-that OF the Union Pacific
railroad upon an appeal from the Court OF
Claims. The court below bad given the
railroad judgement OF s6l2,-
632 so against the United States.
The railroad sued the government ior
Withholding the interest upon The bonds
issued to the road. The government con-
tended that the 70 d should pay the inter
est upon these bonds, and that such was the
express intention of congress when aid was
given to the road. The railroad claimed
that IL was not required to pay the interest
upon the bonds until the principal OF TIE
bonds is due. The is one of greatsf
importance, so far as mere money goes, than
any other ever argued in court OF law. In
the outset of Lis argument on to-day the
encouragement said that the courts final
Judgment in this case will determine the
disposition of far more millions OF money
than ever was determined by any single
Judgment before, and the
MORAL AND POLITICAL CONSEQUENCES
which must follow will largely outweigh all
the pecuuiary considerations. More than
500, 900 will be taken from the property
of the people and transferred to the pockets
OF the stockholders OF these roads If the
court sffirms the judgment below. The
railroad company was r presented by MIR
StoughtoD, of New York, and Judge Bart
lett, of Boston. The argument in the entire
case did not occupy over three hours. The
attorney general az the outset spoke up
wards of an hour and quarter, and
used about twenty minutes in
mis- closing argument. Under Mr.. Pierre
points handling the case was much SIM
plified. He only contested one point. He
said that the only question in the case was
whether the railroad company was bound To-
reimburse the interest as the same falls due
on the bonds borrowed from the govern
menJ, or whether the company may post
Done the payment of the interest, which the
government pays half yearly, until he ma
turity of the bond at the end of 80 years.
The counsel for the railroad dwell much
upon the fact that the Union Pacific rail
road is
A NATIONAL ENTERPRISE,
and in its support the people were willing
TO be taxed MIR. Pierrepont, in bis argu
ment, in the plainest OF plain language, re-
lated the history OF the road. He said the
original charter obtained by Walter S.
Burgess, Ben. H. Cheever, and Ben. Holla-
dsy with the sole end Of private gain. To |
the gift of their valuable franchise was
added principslity of lands, the exclusive |
right TO all the vast business OF /
the government without the slightest dis |
count from individual rates, besides some |
tZo.UOO,UOO In government OOnuS, more J0aI /
enough TO build every mile OF the road, leav- |
ing this colossal power and unimagined |
wealth In the hands OF private corporation, |
q lasting monument to the lavish and the |
corrupt enrichment of private individuals |
at the expense of the public. In return the |
government only asked a first mortgatt |
on the road to secure the bonds. In eak- |
ing Of the action oftwo years later he says
that emboIdeDed by past success and using |
means now known of all men, his corpora
ton
INVADED AND SUBJUGATED
the congress OF the United States and pro
cured large additional privileges and dons |
tions. Mr.. Pierrepont in another part of
his argument, slluding to the action of coz
gress In 1873, ordering the withholding OF
the interest, said that time developed the
fact that this great corporation was a fraud
upon the public, and that the nation was
taxed to raw the corporate spOliations
and that in 1873 congress awoke to the shame
of taxing the people to enrich private cor
porations. Mr.. Pierrepont claimed in the
main that the original act of 1862 was the
charter of the company, as it had been ac-
cepted by the road, and all the emOarrsss-
ments created by the acts of 1864 and 1871
were removed by the repeal OF 1873 He ex
preSsly argued that the company as pr1
vate corporation In every sense of the word,
and that 1T was all nonsense to talk about
proprietOrs being treated to special immuni-
ties. Section of the act of 1873 provides for
bringing suit In equity against
THIS CORPORATE ABsoRBER
ofpublic property. By the bill filed and by the
public records, it appears that this corpora
tion has received from the government, be-
sides the enormous grants OF lands and
other properties, franchises and privileges,
-, an Oooo
of interest paid by the government, and not
reimbursed or sstisfi d by any earnings OF
the company; that a mortgage of S27 230, BOO
with interest payable half yearly at six per
cent, has been put upon the property OF
the company and the proceeds realized
that a land grant mortgage of S10,4000OO,
with interest at seven per cent, payable
half yearly, has also been made Dy the COM
psny and the bonds sole; that on Sept. 1,
1859, the company issued its bonds, calico
income bonds, to the amount OF $40, O00, OOO
with interest at 10 per cent, payable half
yearly; that the company has also issued what
they call bridge bonds to the amount OF
$500, 900, payable in gold with interest half
yearly at the rate OF per cent per annum;
that on the 18th of December, 1872 the COM
pany ordered another mortgage of SIG 000,-
600 to be made, bearing interest at per
cent. per anuum, and that the stock issued
Is $50, 762 300, and that there are numerous
other
OUTSTANDING OBLIGATIONS AND CONTRACTS
involving the company. In speaking OF the
intent of congress when the original grant
OF aid to he railroad was passed. the attor-
ney general said that if the bill had read
that the mortgage given by the road to So
cure the govern meut bonds, whose interest
was payable alt yearly, should be so con-
stTued as to allow the road to post pone all L
its interest till the end of thirty years, not
an honest man in that entire congress
would have voted Tor it, and no reputable
man believes that the bill could have re-
ceived single uncorrupted vote. Had the
corpOratOrs who, under this statute, have
received S65 100000 of government bonds
bearing interest a. 6 per cent. payable half
yearly, stated that at the end of 80 years the
xvouId bovo ,,afrt 80 |