Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1876-05-28
SENATOR EDMUND'S BILL
To Secure the Government Mort.

To Secure the Government Mort.
gage ON the Central Pacific
Railroad.
The Eastern press, for some time
past, and more recently the journals Of
this State, have teen engaged in dis
cussing the relative merits and demer-
its of Senator Edmund's bill to provide
for the further securing of the mort
gage held by the Government on the
Central Pacific Rsilroad. We have
never seen MI. Edmund's bill and it is
only within the last two days that we
have been furnished with an intelligi.
BILE synopsis of it. With the aid of that
synopsis we are enabled to gather the
following facts, which we condense for
the consideration of our readers:
The trans. continental railroads had
their inception before the ommence-
ment of the rebellion, and therefore
before the greenback issue and the con-
sequent appreciation of coin. The sub
sidy granted by the Government to
the roads was based upon a coin valu-
alton. To secure the repayment of this
subsidy, which was granted alike in
Government bonds and in Govern
ment lands at a fixed valuation, the
Government took a mortgage upon the
franchise. These subsidiary bonds
were, by the Central Pacific authori-
ties-we know naught of the action of
the Union Pacific-placed upon the
market and the proceeds Of sale de-
voted, at least ostensibly, to the COM
pletion of the road. As time passed
on the necessities of the Government
required the issue of legal tenders, and
the necessities of trade discounted those
evidences of Indebtedness until a Fed
eral mite for 81 vas worth only 81
cents. The Central Pacific. in common
with the entire creditor class, suffered
by this initiation of the currency, and
indeed suffered more than others. 1t
was found impossible, under the exist.
ing burdens to continue the erection of
the road, and the company applied to
Congress for relief. Based upon this
application a law IA enacted whereby
the company was released from the
operation of the mortgage held by the
United States, and authorized to go.
into the market and execute a mort
gage for a fixed sum-some $30, 900 900,
we believe-lhis latter mortgage to be
q first lien upon the property; the
Government claim being deferred as u
second mortgage, and the second mort
gage bonds not falling due until 1890.
So stood the case at the time when
the "Iowa case" was presented to the
Supreme Court. The claim had been
made on the part of the Government
that the interest on the second mort.
gage bonds vas due annually. This
claim tie company resisted. The Su-
preme Court of the United States
passed upon the matter and ruled that
nothing was due from the Central Pa
cific to the United States until the
termination of the bonds: that is to
say, in 1890.
The Central Pacific is to day indebted
to the General Government in the sum
of $2s, OOO, 900, or Whereabouts, and that
sum bears interest at six per cent. per
annum. That is to say, the company
will be indebted to the Government
when the bonds shall become due in
the sun of 500, zoo, 900; for which the
Government has no security other than
the road itself, and the road subject to
the first mortgage liens.
The SENTINEL has ever sought to adj
vance the local interests Of Nevada
without regard to the welfare of a gi-
gantic corporation like the Central
Pacific. We, in the above remarks, lay
before our readers the facts in the above
matter, promising 10 our next issue to
submit In full the "Edmunds BILL"
and promising that we regard the
measure as one calculated to promote
our interests.
ruosr Ass Acu MuRDERs.-