Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1877-02-21
Mr.. Blaine's Remarks on the Fund
ing Bill for the Pacific Railroad.


mood to ask questions than TO answer them, to
seek information rather than TO give it. have
tried however, to carefully study the bill which IS
reported from the Railroad Committee. and my
conclusion has been that | could not see my way
clear TO give 1t my support, and for two or three
reasons which will briefly recapitulate. FIRST,
thiak the period assigned for the final payment
and liquidation of the debt due to the government
is too remote. l do not concur IN the entire line
Of argument presented by the Senator from Cali
fornia Mr.. Booth q day or two since. But there
was one point of great importance which the Sem
ator presented with force aud aptness, showing
that US you remove the date OF final liquidation
you may decrease the annual installment OF the
sinking fund.- and that If instead of 1917 the date
assigned by the pending bill, you insert 1880, or
1910, or 1850, you diminish in very rapid ratio
the sum to be paid each year, scaling indeed the
three quarters of a million now proposed down to
a mere nominal sum-
Second. am still further opposed to the fifth
section of the bill Taking what the amount re-
quired for ultimate liquidation would be and
counting backward for an existing present value,
you do not Exactly realize the reduc,O dd dbsurdn,
vet you do reach such minimum point as
shows that it amounts TO no adequate payment at
all. II is like looking at a man through one end
OF q telescope which draws him near TO you, but
forthwith you change it and look at him through
the small end, he becomes amazingly re-
mote. l think that section has the power of inf
mite mischief in it, of disappointment to the people
whole funding scheme.
Third. l am opposed also to the prov $50 in the
third section. am opposed to making any CON
diton that the Government shall or shall not pat
ronize this road would leave that With the Gov
eminent officials | would leave it, as the phrase
of the day goes, to "the laws Of trade" | think
the departments Of the government that have had
charge of the transportation are generally conscien
tious and upright. | think especially so in the
Qusrtermasters department, which would have
Il laL 49,
companies in this respect and that they may be
left to select the most advantageous and the cheap
est modes OF transportation without the law bind
ing them to use the Pacific Railroad.
For these reasons and others that might name
shall be constrained to voe against the bill org-
nally introduced by the Senator from Georgia,
MIR. Gordon, and substantially adopted by the
Railroad Committee, whose chairman Mr. West
has so ably presented it to the Senate.
On the other hand, am very sure that can
not vote for the bill reported from the Judiciary
Committee. The judiciary bill simply means
lawsuit. That is all there is OF it. do not mean
that The honorable and able committee which re-
ports il means lawsuit; but in effect it throws
this whole case into litigation. where it has been
now for years past and where legislation of that
kind will keep it for years to come. | do not be-
heve we can do any greater dsservice to the Uni
ted States Treasury whatever its effect might be
on the railroad, which we are not here specially
bound to consider, than to pass bill of that char
acter. 1t would be litigation, the laws delay the
laws uncertainty and the laws uncertainty thus
far has been pretty absolute certainty against the
government in all the controversies and conflicts
which we have had with these Pacific Railroad
Companies. | want to keep out of the courts.
1.-The burnt child breads the fire." We certainly,
to use common phrase, have not had luck in the
courts in our controversies with these two railroad
companies. l do not say that they have not had
right on their side; | am bound to presume they
have had. They have had most important de-
clslons in their favor from the very highest judi
cial tribunal known to our laws, and thus far
believe have come off victorious in every contest
with the Government.
In its great economic and financial feature this ques
ton Presents itself just about thus Under the decis
ION of the Supreme Court of the UntedStates they
have the indulgence on their side of such long
posponement of the annual interest as waits uatii
the maturity of the bonds. That is the law. We
are bound to respect it, The gross sum owed to
the government by these two railroad companies
when the bonds mature will be somewhere in the
neighborhood of Sl40.000,000 or $4,000 600,
and above that there lies a mortgage of about
$54 900 900, making an aggregate, if nothing is
done and nothing is settled when that point is
reached at the end of the present century, of
something over $500 900 900 which the govern.
ment would have invested. If it chose on its own
account to raise the first mortgage and become
the owner OF the road the government would have
On its hands some eighteen or nineteen hun
dred miles of railway in which it had invested at
the rate of $4,000 a mile. ! do not think that
would be profitable investment. | do not think
we ought to enact any legislation that would rem
der that step possible. Nay, do not think we
ought to take any risks on the subject. There
fore l should be in favor of doing something.
These railroad companies act in their own inter-
est and they will do that of course. There is q
great deal said. and has been for great many
years, about the men who control these roads be-
ing grasping and avaricious. aiming at MONOPOLY.
mn hat IA oil
They have got hold of great property and they
maintain their rights and hold on to it, and they
intend to keep all the law will give them. Every
body else would do the same thing in their place.
They are men. repeat. and that is all there is of
it. They have got property and they propose to
protect it, and to appeal to the law, and suppose
to fight it to the bitter end in defense of what they
consider their legal rights. They would be more
or less than men if they did differently.
Now, instead of making a bitter controversy,
possibly extending until the condition of things
to which have spoken comes to pass. when the
government confronts itself as the owner of this
railroad at the enormous price of $4,000 per
mile invested in it, is it not better if can have
some sort of adjustment that will be fair to the
government and fair to the railroads.
was very much struck. confess in reading
over the bill proposed possibly to be submitted as
an amendment by the Senator from Iowa, Mr..
Allson.) 1t does not propose specific sum au-
nually.' am little suspicious Of specific sums.
CoWpounu Interest ana DaODapef cacuIators arc
very deceptive, and there no tabular state
ments brought into legislative halls that are not
little tinctured with interest the one side or the
other. They are made out against the railroad or
they are made out for the railroads and distrust
both. The Senator from Iowa (Mr. Allison) pro-
poses as read it, to leave it to the Treasury De-
partment to say just what sum shall be paid by
those companies that shall entirely liquidate and
discharge their obligation to the government by
the year 1905. l understood the Senator from
California to indicate that he would go for sink
ing fund which would discharge it in 1900. There
is only margin OF FIVE years difference between
the Senator from California and the Senator from
Iowa. That is not very great period in the life
of nation. 1t would hardly be wise to put this
whole question at risk on a wrange or difference
between 1900 and 1905. do not think the public
judgment of the American people would Justify
the Senate of the United States in coming to a
sharp issue with the railroad companies and throw
ing the whole thing TO the doubtful hazards and
chances of suit at law. with its prolongations
and its doubts and uncertainties merely on the
point Of tine ultimate liquidation being in 1900 in
stead Of 1905.
Therefore have hoped in reading over the amend.
ment suggested by the Senator from Iowa thas his
proposition might be brought before the Senate for
a square vote. could not support the one which
the honorable Senator from Louisiana (NIr. Vest
has presented from the railroad committee, and