The New York herald., 1877-11-14

and moved that It be referred to the Committee on
/ In reporting back this resolution Mr. HAML1s said
the committee was impressed with grave doubts upon
this subject The negotiation Of treaties belonged 10
the branch OF the governments besides, this
resolution looked TO the raising OF revenue and such
matters must originate IN the House OF Representa-
uves
| A number of bills introduced and referred 10
| Mr. BoorH submitted resolution requesting the
| President, II not incompatible with the public
| formation az his command relative the late Neg
Perces the Of that war; the number OF SOL
tho cost OF war; also what disposition has been
made OF Chic Joseph and those who surrendered with
| him 10 the forces OF the United States Agreed to-
| Mr. Booth, chairman OF the Committee on Manufac-
lures, at his own request excused from further
service on that committee.
cHAFREE's sPEEcH
Tho morning hour having expired, Mr. CHArYEH
trep OF Colorado, called up bis resolution eauestng
the President o. tue United States 10 inform the Seu-
ate what legal impediments II any, exist which pre-
vent hm from executing the laws OF Congress con-
cernlne the operation OF the Union Pacific Railroad
ana It's branches He said he asked attention this
subject thus early IN tho session because the long.
continued failure and refusal OF some OF
the companies TO operate their roads accord
ing TO the acts OF incorporation wrought
almost incaicuabe damage and loss the
people aud tho government Ins his Judgment the
hardship Il inflicted was greater than would be
several companies. Tho law required that the main
line and branches should be operated as one
nected continuous M line the intention Of the statute
pense ofthe brancnes-not that one part the road
should be used TO the injury OF another part but that
the main line and branches should be the
common recipients of untrammellcd aud
unrestricted trade The relation between tho govern
mcnt ana the great railway system of the country
must soon engage the serious consideration OF Con-
gress Four or more mon, controlling the four great
board and tho Mississippi and Missouri Valleys had
the power to mark up or down the price
realize Tor their products and this uncertainty
penacnt upon transportation was one OF The
oical invest cations INTO the manner OF constructing
tie Union Pachc Railroad had disclosed q degree of
fraud ana yiliany hat not only shocked tho con-
foundation OF public and private morality The
frauds exposed by Congressional inquiries have been
Supplement- ted by other infractons OF law so garng
and nexcusablo that conservative and honest
entertained the apprehension that this great govern
ment potent in subdung rebellion, would itself TALL
victim TO a corporation creation. The scheme
OF great trans continental railroad was worthy the
statesmen who conceived It. To tho people generally
1t opened up alurng prospects because was pres-
nant with tho promise Of new markets, rapid travel
ana cheaper transportation OF chief obIiya-
t,onslau Dy law upon The npan los the provision
prorate mile Tor mile upoh.the main road and the
several branches The act Of 1852 provided that 'yhc
track upon the entire line oI railroad and branches
shall OF uniform width" WhyY The law an
swered, 80 that when completed cars can be
from the Missouri River to the Pacific coast" and that
the whole line OF said railroad and branches and
graph snail bcopcraed ana used for all purposes OF
public and government are concerned,
nected CONTINUOUS line" 1t was upon this explicit
vpess loaned these companies ovor ss1 ooo, 600 and
gave them such munhcent grants OF land.
LIABILITY OF THE GOVERNMENT
| When the bonas matured the liability Of the govern
their account would be $50 9i5 833, and al
though provisions had been made Tor par
yoar, they had not been complied with
in single instance BY the act Of 1854 the mortgage
70 the government made second licn This gave
eacn company double the amount OF the govepnmeut
bonds. The Union Pacilc Company could thus
realize about s52 600 per mile than the
probable cost road ana its equipments. BY lhs
same act the land grant was doubled, and that
12UO at average prices Of 81 AZ per acre,
total Of So 00o AT this ratio the ana grant alone
would pay the entire cost Of the road. by tho same
act tho companies allowed to take coal and
iands and the governments was required 10 pay each
ernment business instead OF simply credting tho
whole amount. Many other very. important advan-
| lagcs were given the company IN the act Of 1854.
| OBLIGATIONS
| But what the corresponding obligations i'm
hcs Congress reserved TO itself not qualified, but
the absolute riget to alter, amond repeal the ncor
poratng act The companies were required not only
] 10 operate their roads scted, continuous
line, but AS the law says, 50 as "in such
operation and 10 AFFORD and secure each equal
advantages and facilities as TO rates. time and
porlation without any discrimination OF any kind
iavor OF the business OF either OF said
companies adverse 10 tho road or business OF
or either OF the others" All the branches
required TO pro-rate, mile per mile, with tho main
1 such equal advantages and facirtiea IL would
be mpossbility for the branch roads ever TO
repay tho government unless they could share IN me
business oil throus liue aud already because OF the
| Union Pacific Company's unlawful determinations
aud refusal pro rate, the Kansas Pacific road had
passed into the Dands Of motion Of the
hrst mortgage bondhoiders Tor default ia interest
hence the bonds advanced By the government must be
Al least SIS would have been taken IRON tho
Treasury consequence OF ~ refusal Of the Uni"n
the acts Of Congress- So far that company mad suc.
cessiuly doiicd The power OF the three coordinate
| branches OF this government.
| UNLAWFUL ACTS OF THE UNION PACIFIC
While The DraLch roads were thus made bankrupt
the Union Pacific, by illegally monopoiizipg all the
through traffic bonanza rates, we're enabled TO pay
not only interest S52 000. 000 OF bonds,
over the bonds Of tho United States, but also
a dviueau of eignt per cent per annum on over
$38 600 900 of Stock besides investing large
every year constructing other roads IL should DC
borne in mind that large part OF the company's
company itself IN constructing the road, ana
never had been pan pa,d TOR TOR IN % cash "a, as re- re-
| at about thirty cents on, tho dollar IN ''road
making sat enormous profits The gross and net earn
ing expenses were les than torty per cent, winch
| was smaller rato than on any Eastern road The
average OF Operating all tue roads In the United
states was sixty per cent Of their gross receipts
There couu be question oi the rights o the hansas
Pacinc Us oranch nnc inese rlgnts es'aosnea III
cnriier acts, wcr3 confirmed IN the act oil 1862 fho
Union Pacific Company nad set up tue plea that u
would bo Unfair to compel them to pro-ratc on tho
western hall Of their rod In view OF Its higher
| pradcs ana larger operating expenses. Even
| were this true would present reason Tor
| non com piianco with the law. But the Other
| hand tho Union Pacific received double subsidy,
S 900 per milc ior large portion Of the western
hall OF the road anu treble subsuy, or $4S OO0 per
| mile, for the most difficult part OF II An
exam, nation OF tho detailed Official statements OF the
| grades OF both these roads showed that The Union
Pacific had larger proportion oil lcvei track and Of
all grades up to sixty lee, per mile, and that It's Slight
excess OF grades OF from sixty to ninety cet was more
than by It's superiority in level track.
rnus IN cost OF operation II had greatly the advan.
tage sdering gra1es alone, well rs the advan-
tlge in good material Tor its road bed and In tho
abundance convenient location and cheapness OF coal.
| Mr. CHAFFEE quoted from the report oil General
Warren, United States Engineers anu the civil en-
puecr appointed by the President IN 1865 TO examine
tue line OF tue road, which states that the construc
tion OF the road had been remarkably easy, the
general route beng exceedingly woli To-
Gated and possessing capabilities Tor easy
grades aud favorable alignment unsurpassed
BY any other railroad line on sim larry elevated
grounds These unimpeachable facts demonstrate ed
that the pretence Union PacIc that opcrat-
ing expenses heavy as 10 justify It's enormous
tariff between Cheyenne aud Ogden was entirely
false. Even " II did cost the company moro TO opcr-
ate the hail OF the road their agreement with