National Republican., 1877-09-06
THE PACIFIC RAILROAD BONDS

II Is n well-knOwn fact that the General
Government Is liable for large amount of
bonds issued TO aid in the construction of
the several Pacific railroads. II is equally
notorious that the Government was de-
frauded out of an immense sum OF money
in the construction Of those nilroads The
financial transactions connected with build.
ing them forms one of the most disgraceful
chapters In the history Of our national lcgis.
lation. II would, therefore, he natural to
suppose that AFTER the Credit Mobilier had
ruined the characters Of 30 many public
men, future members Of Congress would be
very chary about supporting any measure
demanded by the Pacific railroad. Yet IL
was only by the active cxertions of Senator
Booth that scheme was defeated in the
last Congiess which would have virtually
defrauded the Government out of nm inn.
mense sum Of money.
The liability which the United States
rests under for the several Pacific railroads
Is no slight one, but is so large TINT il would
in the earlier days Of the Republic have
been considered an enos nous national debt
of ITSELF The latest official statement
shows the account between the railroads
and the United States to stand as follows
Government bonds outstanding. ........ s6L625.5l2
iuterers raid by United StatcI......... S,eSI6p
tnterest due and not paid sI6.2sN
Total advanced by United States .slol. az so
Interest repaid by transportetion....... Ss7e.sso
Balance due TO the United states Sep.
tember l, 1877 .....................s sSlbSl.it d
These bonds have eighteen OF twenty
years to run yet, 50 that after dednctinp
charges for transportation the balance due
ths Government when the bonds fall due
will not be far from one hundred aud sixty
millions Of dollars. BY the torms of the
contract with the railroads no part Of the
interest paid on these bonds by the Govern.
ment can be collected until the bonds
mature 1t therefore becomes q matter al
very great importance that the interest vi
the Government should he 20 guarded that
this immense sum may be ultimately re-
placed In the National Treasury.
The officers Of the railroad company, In.
stead Of making an effort to discharge this
Indebtedness by making payments on IL,
have devised scheme by which they pro-
DOSE TO get rid of the indebtedness
OF the corporation In o very easy man
ner. They propose TO make pay
n,euts Of Sas8,tOO half yearly, with COM
pound interest nj six pet cent Tins, with
out actually paying any part Of the indebt-
cdness ofthe railroad company, they pro-
porc by means Of the compound interes,
upon the money loaned 10 the Government
to discharge their entire indebtedness.
This scheme Is manifestly so unjust thai
the idea Of accepting 1t should not be toler.
atod Tor moment II Is we'll known tina,
the Government was deirauded ont Of i'm
mense sums in tho construction OF that
railroad, and IL those sums lcsnn0t be re-
severed We should at least guard the Treas
ury from further impodtiops from the SAINT
source. The people are now happily fore
warned as TO the efforts which will Ike mad'
to plunder the Treasury In this in
direct manner, and they will therefore scru
tniss the proceedings of Congress with grea
watchfulness TO see that their interests In thi
natter arc properly cared for when the ole
scheme which was defeated In the last Con
greas is revived in the next
1t is not 700 late ~ look into tho stiaiI
of the Pacific railroads to see whether tn
management OF them on behalf Of the Gov
ovuuW TOR scffcaf isnun1r .nudu So- -usfrs
6ally examined, for IL may be found ths
overcharges have been made under thf
head. II would not be strange IL err0l
should be found In an account amountin
TO nine millions Of dOllnra The money Ia
Sorests Of tho General Government In tll
Pacific railroads are 80 great that miliior
may be readily lost or saved accordingly .
sfli.irs Of those corporations are CAREFUL
i,oked after. We hope, therefore, that
tn. next Congress the offor.s Of Mr. Boor
to protect the interests Of the Governnie,
connected with them may he hearth
seconded In both Honses. The task
dealing with and controlling such powerfr
corporations will require both vigilsn'