The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-01-31

DEBATE N THE SENATE ON TIL. ACTS TO
CREATE SINKING FUND FOR THE LIQuIDA-
TON OF THE INDEBTEDNESS DUE THE Gov
ERNMENr--sPEEcH OF MR. THURMAN.
WASHINGTON, Jan. 80, 1877.
The Senate to-day resumed consideration of the bill
to amend the Pacific Railroad SO as TO create
sinking fund for the liquidation OF tho Indebted ness
due the government by Pacific Railroad companies
Mr. THURhAN gave notice that no would ask the
Senatd to remain session to-day and dispose of this
bill The bill had been placed in his charge, and 1t
was known that he would not be able to be in the
ate after to- morrow for several days.
Mr. WEST, rep.) OF La, said he hardly thought the
bill could DO disposed OF to-day. There a number
Of Senators who desired speak, and he hoped tho
vote would not be taken until tomorrow.
Mr. EAToS, (dcm.) of Conn.,, said the Senator from
Georgia (Mr. Gordon) desired to speak, but he was
physically unable to do so to-day, he would there.
fore be compelled to ask that the bill be allowed TO 20
over till tomorrow.
SPEECH or Mr.. MITCHELL
Mr.. MITCHELL OF Oregon, then resumed tho floor and
continued his speech commenced yesterday He
argued that the passage of the bill reported by the
Judiciary Committee would be a most unwarrantablo
assumption OF legislative power, as 1t prescribed new
and onerous conditions foreign to the original con-
tract. He favored the bill introduced by Mr. Gordon
which had been reported tavorably by the Committee
on Railroads. and said pass that bill the government
would not violate Its own faith disturb the vested
rights Of tho companies He argued that tho Gordon
bill would be acceptable to the companies, under IL
the sinking fund provided Tor would in thirty five
years, reimburse the government Tor the whole
Of the bonds issued. both principal and interest.
ARGUMENT THURMAN
Mr. THURMAN, (dem.) OF Ohio, reviewed the lcgisIa-
ton OF Congress in regard TO Pacific railroads, and
argued that the government had first lien upon the
Union and Central Pacific railroads until the act OF
1854 which surrendered that lien and gave tho roads
great advantages II had been proven that the gov
ernmcn subsidy in LANDS and the proceeds of govern
ment bonds issued were sufficient TO build these roads,
Not one mile OF tho roads was built by any expendi-
ture of the Individual stockholders and now II was
said that the government had security, right 10
get It's money back after having furnished the means
to build tho roads. lie argued that Congress had
power alter and amend the Pacific Railroad acts and
denied that the bill reported by tho JUDICIARY Commit.
tee unconstitutional that impaired the obli-
cations Of The contract
Referring to the bill reported by tho Railroad Com.
mtee, he argued that the $3.50 900 which It required
the Central and Union Pacific companies to pay INTO
the Treasury annually a smaller amount than they
paid in under the existing law or would pay in
business revived To pass the bill reported by tho
Committee on Railroads would be an extension OF the
debt due from the companies for all time. He had
no doubt that tho 1--WE per cent OF net earnings
required to be paid into the Treasury, and tho
sum Tor transporting mails nc. would amount
to 81, 500 900 per annum, or $l,00O,o00 more than
would be received from the two companies under the
bill reported by the Committee Railroads. " would
be much better TO let the law stand as at present
snEImAS's AMENDMENT
Mr. SHERMAN, OF ONO, submitted Amendment to
the BILL so rs 10 provide ttat tho Central and Union
Pacific roads shall pay into the Treasury the credit
% of sGn Of Their
any one year shall not exceed 1880, 900, and the
amount thus paid in shall be In lieu Of tic Ave per
cent the net earnings and half OF the amount
earned ior transporting mails, &c, paid INTO the
Treasury unGcr tho existing laws. Ordered to DO
printed
without further action on the bill the Senate ao.
jOurned.