, 1877-01-16
AN OLD THIEF. TH1NLY DISGUISED,

Knocked construction companies md tho sys-
tem Of building railroads without money
higher than n kite, Col. TON Scorr laa boon
laboring TT Washingto ION to havs the money and
tile credit Of tho Unitod States placed Mt his
command, to enable hin, as railroad com.
pa1.y, 10 contract with himself, rs constr,lc-
ton company, to build certain railroads.
This scheme Of his wns that tho United
States shonld guarautee the payment Of gold
interest on the bonds Of tho Company, ut
tho rate Of . per cent; That these bonds
should run forty years, aud be Issued ut the
rato Of $4,000 per mile of the 1,S0o miles
Of contemplated aud act,1ally y-conatructed
railroad. At tho last session Of Congress,
Nj. HUNTINGTON, representing the Southern
Cnlifornin Railroad, which has boon con-
structing q RAILWAY from San Francisco to
tho southern line Of that State, oploscd
Sco1r's scheme, nnd offered, on behalf Of lis
Company, to construct all Hco7Tis proposed
| railways without any other subsidy than tho
lnutl-grnnts possessed by those roads. In
ths interval since tho last session Soorr md
HUNTINGTON have come to an agreement.
| Scorr'N oil Rollomo has been ronlodelei, ro.
painted, varuishcd, and nowly labeled, but
substantially It's character IL unchanged.
| The new bsll, which, 1t Is said, has received
the support of largo minority Of the Conn.,
,nittce on pactlc 1sailrold> md will soon be
reported and put on its passago in tho House,
provides as follows:
That the SCOTT mud HUNTINGTON Companies,
representing 1,S00 miles east Of San Diego
| t.. -. u1,otf In
tho Eastern tern,iut In Missouri and Tcxas,
mud ahall iss.lo their own bonds to the full
valne of their roads, and deposit them in tho
Treasury at Washington. These bonds arc
to run forty yoasH aud bear 6 per cont inter-
est. Tho United States are to appoint Com
i.lissioncrs, who are to examine the road con-
Btructed or hereafter constructed, aud on
their report tho Secretary OF the Treasury
IL to issue to tho Company itH own bonds,
l,curiug tho legend, "Tho United ssatcs Of
Alnerica guarantees tue payment OF tho in-
tcrpst on this Lond." Tins inlorsctl, tho
bond IL 10 DO put Oh tho market and soll.
The bonds aro to bo Issued to the Companies
to an amount equal to the cost por milo Of
construction. Aa the roatis aro 10 DO built
for scnrr, by Scorr'a Construction Com
rauy, scorr will have M difficulty in know
ing tho exact amount Of bonds per mile tho
Secretary Of the Treasury shRll isauo to him.
AZ a security for the Indebtedness thus as-
surnotl by the United States, thu Companies
aro To execute u first mortgage on all theis
property; are to pay into tho Treasury their
earnings for Government transportation
aud tho proceeds Of thu Halss OF their la,,d.
Tho aggregate OF lands granted to tlesa
Companies IL about g, ,OOU, 900 ocras, QUE
half Of which arc not worth s ccnts an aero,
and on which the Companies have already
borrowed moro than tlloir value.
It Isl denied TINT this Is a subsidy. Let US
see. Eatiulating tho wllolo line Of road aud
OF the several branches at 1900 miles, anl
the average cost per milo at $4,000, we
have AZ the aggregate bonds to bs Issued
and tho interest guaranteed as follows:
! Eighteen hundred miles At $a5. 900
Ahsa.p e It'll Tntsf:.t al psf een iS oSt o
Aggregate inertst, toFty yeaEs..... leu. Uo0, oot
This bill, therefore. Is to compel th'
United States to assume legal obligation te
pay to the holders Of these boul4, during
, the next forty ycars, the modest suln ol
| @Asu3SVVtV1V AA kosas NO Aa0Athako lat VI
! coumo. to cover the principal and int crest 0
: tho bonds, sud to fozaclose the mort gage t.
recover tho interest will require the assump
: ton OF the principal aud interest o1
! the bonds. In plain terms, the mortgage Is
sham and fraud; even il 1t were good SO
I curity for the debt, tho Government Is not
l noney-lenler nor pawnbroker, and hears
i forbid that 1t should ever BIO The owner OF
: railroad, whether by purchase. Inheritance
0 or revcssion!
, Stripped Of all its varnish and frauds, 1t
t, presenses and eqaiyocations, ths seae me
4 that The United atates shall by ta1atio
|. raiae 50, 600 gold annually, for fort
i years, aud o1pend 1t to pay Tox scorr'
i Construction Company for building 1,80
It ,niles OF railroad in sandy desert. II this
:, not q subsidy, then what Is it7 The fa'
Il that the guarantee Of the bonds IN require
d IL evidence that, without the Government T.