The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-07-09
JAY GoULD,s sCHE MEs.
Defeated in the House he Hopes TO Manipu-
late the Senate.

'btt INC FtuNtts
To THE EDITOR OF THE SUN-Sir: A
Democratic House has finally come TO a vote
upon the question Of exacting payment from
the Pacific Railroads for the immense sums
which were loaned to them by the Government
to aid In their construction.
The bin perfected 10y Mr.. Lawrence, from
Onto, and which for long time past has been in
the hands OF the Judiciary Committee, was
passed 10y vote of l5a to Q. The bill provides
that the Union Pacific Railroad shall pay $4,000
into the United states Treasury, semi-annually
or AZ the rate 81 $4,000 per annum.
This is to be used as sinking fund, the Secre-
tary Of the Treasury being required to invest the
amounts received emi-annually In securities OF
the United States Government. After ten years
the Union Pacific will DO required TO pay
81 Ooo0oo per annum, instead Of f,iO,0O0 into the
sinking fund and this payment must lie con-
tinued until the entire debt Ia liquida-
ted The Central Pacific IL obliged by the terms
Of the bill to pay an amount proportional 10 It's
Uc'iies the s75OOoO per annum, the Union Pa
cinr will be Obliged to hand over Ave per cent. OF
its net earnings. and the Government VIII SIN
retain one-half of the amounts which tho rail-
road earns for its transportation. .
This bill which has passed the House Va not
materially different in liz provisions from the
prUuusitun made 10y Sidney Dillon last year TO
The secretary uf the Treasury. before the decision
of the supreme Court cuibuldcned the Union
Pacific officials to resist payment Of any portion
of the Indebtedness until the maturity of the
principal The scheme, although 10y no means
adequate To- hquidaie tho sHONUO which tho
Union Pacific will owe the Government when
the bonds become due. J. nevertheless sufficient
To wipe out "a large portion Of the indebtedness.
and the amount remaining will hC So small that
the road will not be apt 20 go into bankruptcy to
cheat the people out OF their advances.
Could idea since the decision Of the supreme
Court was rendered has been To mako no provi-
sion whatever for paying the Governmcnt but to
absorb all of the net earnings OF the road In the
F4ataf ~ stf ~ a IL
well hnown that he believed that no hill could
be brought TO vote in tho House at this
session. aud that his agents have been working
hard at Washington to block the wheels Of
legislation, SO far as his property Is concerned.
seuted, signed by sidney Dillon. President Of
the Union Pacific, Offering to rcconvey worthless
lands &C. congress, aud To pay certain insignih-
cant aiaounts, Il the road were released from
payment 4 nve per cent on its net earnings
and Mere allowed to collect all. instead Of one
half Of the money earned for Government trans
| purtation.
1t was a great surprise to GOULD when
| he received the news OF the sudden and de-
| Lawrence bill 10y an almost unanimous vote. In
\ no way can this be more clearly Illustrated than
| by the appearance of his tribune which has been
! used without stint to aid In carrying out hts
| schemes in Washington. The Tribune Of July =,
/ mutilates the Associated Press dispatch relating
| 10 the proceedings of the House Ia passing tho
! Lawrence bill. SO that II; 10y comparison with
! and then aIIuaes in the following words editor-
/ ably to the congressional action
" 1he large majority 10y which the bill was
| passed To- secure to the Government semi
| annual paymOn mt on the subsidy bonds Of tho
| Pacific Railroads. will occasion surprise. a. the
measure Was only brought before tho House 10y
| eight more yeas than nays. treat doubts are
still expressed rs to whether 1t Will pass the
| senate"
Ii appears from this that Gould relies upon
| q Republican Senate to defeat any atten Ut
made 10y the House to secure payment OF the
immense sums which the roads owe the Govern
ment. aud it IL likely that II. 10y hook or crook,
the bill should be carried through that body
faFta min.
| to veto the tin which should become a law. The
| senate, II is plain, is the object Of Goulds So
liCitude; aud that lie relies upon it, members
| 30 work for his Interests can Ice seen by tn.
| attempts which have been. and are being made
| 10 nti up the organization with touls Of the
| Pacific Railroads f. n. Rollins. prominently
| connected with the Union Pacific Interests, has
lately been elected to the United States senate
rom New Hampsire' and blaine. equally prom.
inent in connection with Pacific l.ailroac
schemes, Is likely To- nnd a berth Ia that body 10y
| court, sy Of the state of Maine.
| A senate committee recently reported In
! favor Of the outrageous proposition Of Could =
Tor the recouveyance OF worthless lands to ihc
| Government al the rate OF $50 per acre II is
| no wonder that the Tribune, the stool pigeon,
| and Jay Gould all look auxiously to the United
| States senate 70 breaN up any move by which
| the Pacific railroads will toe made to pay their
| honest due. should tile Senntc however not
| prove so plia u toGoulds will a. hc expects.
| and the bin nOt he vetoed b., tho Executive, II
| is likely that Guuld will appeal 10 the courts Ia
| decide in reference 10 the consiitutionaIity of
| the law. That lie will do this Mas forcshadOwed
| some time ago by the young editor, VINO cdi-
| toraly doubted the power OF Congress To enact
| any law which should ublige the Pacific rail-
| ruads To make provision for the payments ~
| their debts 10 tne Government until the maturity
| Of the mortgages.
Gould IL evidently hasing his hopes Of cheat
| ing the reouc ont Of their hhrd earned millions
! which have been loaned to the Pacific railroad
upon the corruption Of the keTuhl,, an party
| For this reason he has grown en- hu,iastic "Nei
| the nomination Of Hayes and wheeler. Know
| Ia that the election Of the Republican tickci
| vii! change tie heads of the GoNctnmcnt only In
name and NOT In disposition nor practices, h,
| hopes for IT, success. The wore IN the HOUSE
| shows couclu Noiy that If the reform tcket Is
| elected Gould and the Pacific Railroads Will LAY
back the money they owe tie people, the burden
Of taAe.lon Will D- greatly lightened, and an era
Of corruption and swindng SIMILARLY chocked
| srlKABOUT.