Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1875-12-04
THE CASE OF THE UNION PACIFIC.


The immediate effect Of the decision
OF the supreme court in the Union Pa
cific case is to keep the government out
Of aIbout SIS, 900, 600 and the compound
interest thereon for about twenty-three
years, when the aggregate Of principal
and interest-the latter not compounded
will be due by the company to the
United States in one sum. The original
principal of the bonds issued to the road
was about S65, OOO, 900, which, with SIM
pie interest at six per cent. for thirty
years would make the total obligation Of
the company at the expiration Of thirty
years $50, 900, 600. AS there is no pro-
vision for compromising the interest, the
supreme court deciding that the accrued
interest and principal are payable in one
sum at the end of thirty years, the
United States will have to lose about
S20, 600, 600 meantime in the way Of COM
pound interest, and at the end Of thirty
years have only q second mortgage
upon the railroad for the enor-
NOUS sum of SlSO,OO0,OOO This is,
as We say, the imm ediate effect of the
unlocked for decision. Another will be
to deter members of congress who were
inclined to favor our scheme to oppose
the Endorsement OF the bonds Of the
Texas Pacific railroad and branches, as
was proposed by the Memphis and st.
Louis conventions. Already we have
warnings from leading northern papers
that this is likely to be the case; warn
inRs conveyed in language, too, that
leaves no doubt that the decision, up
holding, as it does, upon technical
grounds purely, 8 manifest swindle, will
be pressed upon congress to prevent any
and all subsidies, the Texas Pacific espe-
cially. AS q specimen of these warn
ings we quote as follows from the New
York Journal Of Commerce, an old
fashioned Democratic paper that is just
" regarded one of the ablest and purest
opponents q public opinion:
The supreme court decision will still further
sicken the public mind of subsidies. 1t will
now be clearly seen that the government is
It grants such faVors-Jhe good fortune of the
Union Pacific only furnishing another most
convincing example of this fact The pres
ent congress "a large number of whose MEM
bers come fresh from the people, may be eX-
pected to reflect public sentiment on this SUBJ
feet. Therefore we have strong reasons for
surmisiDg that the railroad lObbies Will not
find their work very easy at the approaching
session. We may indeed hope that every one
OF the subsidy schemes to be proposed will be
defeated. The Texas and Pacific road, as it
asks the most, will be most exposed to disap-
pointment. 1t received no true national in
dorSement at the 81. Louis convention, though
large number of states were there represent
ed by individuals. On grounds of pol
icy and expectancy alone-irrespective
Of the disagreeable experiences which
the government has had with the
other subsidized Pacific roadside Texas
and Pacific route does not merit national aid.
But when it asks for this on the heels of the
supreme court decision, the public will be
cautious indeed about giving consent to more
of thisloose legislation which railroads have
succeeded in getting out OF congress. No one
can tell what Interpretation the court Will
put on any statute, however plain its purpose
may be to the common mind. The only safe
way TO avoid such difficulties as the supreme
court has settled at the expense OF the people,
is to grant no more subsidies whatever.
II congress will put its foot down fatty
Just there, we will bear with all possible
equanimity the costly burdens of the past.
Thus, if Jay Gould has not triumphed
over the south in the railroad conven-
lions, he is likely to do so through the
operation of the supreme court decision
upon the average congressman, literally
striking two birds with one stone. For
he has not only succeeded in defrauding
the treasury of one hundred and eighty
millions of dollars, but has dealt the
heaviest blow to the hopes of the Texas
Pacific that it has yet been made to feel.
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