National Republican., 1876-06-30
A WRONG AND A REMEDY.

way. 1t was upon this theory, and this
alone, that Congress finally voted to
authorize and aid its construction, and
public sentiment indorsed the undertaking.
| The original charter of the road was care
fully drawn and all the rights of the Gov
eminent strictly protected. No bonds
were to be issued except the stipulated
amount per mile, which the Government
was to gu srsntee, and these bonds were to
be first lien upon the road and all its
other franchises and property. Nobody
had any objection to this, and, had the
matter remained in that shape, the Pacific
railroad business would never have be-
come the unclean and odorous thing that
it now is in the popular estimation. But a
set of shsrpers and tricksters got their
| greedy fingers into the Union Pacific pie,
and changed it all from its original laud-
able purpose to a glsring and scandalous
| fraud. For proof, let the following facts
be submitted 10 candid and outraged
public:
On the I'd of July, 1864, an amendatory
act concerning the Union Pacific railroad
was in some way pushed through Con-
gress, authorizing the railroad company to
issue its own mortgage bonds, equal in
amount to the bonds guaranteed by the
Government, and making these new bonds
a first lien upon the road and its property.
In other words, the Government lien for
repayment of its liberal subsidy to the road
was practically removed and rescinded,
and it is not to-day worth a penny on the
| dollar. As it now stands, the affair cap
have but one result. The road will even
tually be sold on the company's mortgage
bonds, which are first lien, and which
will absorb all the road and its property,
and the Government will be lett holding
an empty snipe- bag, at a cost to the tax
payers of nearly $s9.oo0,0OO The bonds
guaranteed by the Government were alone
| equip the road, and yet the company's
own bonds in an equal amount were after
wards issued and given priority of lienover
the Government bonds. 1t requires no
very astute or comprehensive mind to
grasp the meaning Of this statement. In
plain terms, the Government paid for the
building of the road, and the act of July 2,
1854, made present of the whole thing,
including the large land subsidy, to the
ring of light fingered spectators who
manipulated the organization of the COM
pany and the management of its affairs in
the first years of its existence.
1t would be strange, indeed, if the Gov
eminent (Which is the people, had no
remedy against such brazen wrong and
yet such an opinion largely prevails. We
make bold to say that there is remedy
plain, direct and effectual remedy
which can be easily invoked. In the able
and exhaustive report of Hon. Isaac N.
Morris, as one of the commissioners of the
Union Pacific railroad, which was placed
upon the desks of the members of the
House Of Representatives a few days ago,
attention is invited to the singular and po-
tent fact that the last section of the iniqui-
tous act of July 2, 1864, declares that
Congress may at any time alter, amend
cor repeal this act" Nothing could be
clearer or more forcible than those twelve
words. They embrace everything requi-
site to a prompt and thorough righting of
the great wrong done the American peo-
pie by this srrogsnt..and grasping Union
Pacific railway ring, 1t is only necessary
for Congress to repeal the act of July 2,
1884, as it has an unquestionsble right to
do, thus restoring the Governments first
lien upon the road and its property, and
the people will get their own again. This
lucky reservation Of the right to repeal
was probably made to afford members Of
Congress who voted for the bill chance
to palliate their action to their constituents
but it is there, nevertheless, and there is
no decent way now to 60 back upon 1t.
They builded better than they knew. 1t
may be urged that these bonds of the COM
pany are in the hands Of innocent holders,
and so beyond the reach of legislation af-
fecting their validity. This plea is with
out application. The courts have repeat
edly held that there Is no such thing as an
innocent holder of corporate or municipal
bonds. Whoever purchases bond based
upon q special law ie bound to take notice
Of the law, the provisions Of which are as
much part of the bond as the signatures
of the subscribing officers and one of the
provisions Of the law authorizing the issue
of these bonds Is that 1t may sat any time"
be altered, amended or repealed. We do
not remember to have heard the "inno-
cent holder" cry when by this very act of
July 2, 1854, the Government lien, secured
by the original charter, was arbitrarily
subordinated to these mortgage bonds of
the company, and yet the Government
was then an innocent creditor of the COM
pany to the amount Of those bonds, and
this act stole from it the sole security upon
which it had become such creditor. 1t is
never too late to undo palpsble wrong
and in this instance the authority is given
to exercise the right OF repeal cat any
time" There can never be better time
than the present for resorting to the plainly
provided remedy for one of the grossest
wrongs ever perpetrated upon this Govern
ment, and Congress could do no act for
which the people would be more grateful.
The original theory of Pacific railroad
building was fully defensible, AID the
country approved it. There would proba-
bly, be no serious opposition at the present
time to new schemes in that line, but that
the experience with this Union Pacific
swindle he's set the public jodgmeat and
the public conscience against all such pro-
jects on general principles. The first move
towards securing favorable recognition for
any new road to the Pacific is to sppease
and satisfy the people by promptly vrest-
ing the rights of the Government from the
Union Pacific bandits. Thus the prompt
ings of common prudence are added to the
obligations of duty in the matter. And
when the power to act Is SO plain and so
complete, why should Congress hesitate to
apply it, both as righting of past wrongs