The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-06

| The animated debate which has been
! on the rival bills for securing payment to
| the United States Of the subsidy bonds ad-
vanced to the Pacific railroads deserves
more attention than it has received. There
are four of these bills, but only two OF them
have made any considerable figure in the
debate. OF these two one is genuine and
tho other sham The genuine bill
the one which means business and IS
meant to protect the government-is that
reported by the Judiciary Committee and
advocated by Senators Thurman, Edmunds,
Herman Beck, Booth and their conductors.
The bogus BILL which is intended us
stratagem to defeat the sincere bill. is the
one reported by the Railroad Committee and
championed by Senators Matthews and
Hill The last named of these bills is sup
ported by the powerful railroad lobby
which swarms through the corridors OF the
Capitol, invades and infests the floor OF
the Senate, besieges Senators in their
private houses and hotels and has the Tree
run of the committee room III which 1T was
concocted. 1t is important that the deceit
full sham be defeated and the honest bill
passed.
We do not choose to discuss now topic
of large scope and interest which these COM
peting bills and the activity Of the lobby in
behalf Of one OF them suggests. 1t has been
felt for many years that one OF the most for
midable dangers which threaten our free in
situations is the overmastering power OF the
great and grasping railroad corporations,
which corrupt Congress and the State
legislatures and IRE becoming more
powerful than the people. The coun-
try needs to be constantly warned
against this colossal danger, but it
is beside our immediate purpose to dwell
upon it at present. We hear it almost daily
said by men OF sense and penetration that
the government will never be paid, and, SO
far as there are grounds for this opinion, it
is fresh proof that such corporations have
outgrown legal control. 1t this be q
fac. it is most melancholy and
discouraging fact While abstaining for
the present from the general topic
OF railroad influence over legislative
bodies we also dismiss as not pertinent to
the bills now under consideration the
Credit Mobilier and other gigantic swindles
perpetrated in the earlier period Of the
Pacific railroads. There is no reason for
surprising that their management is whit
more honest than it was at the time of the
Credit Mobilier, and considering the char
acter Of the roads it seems important that
the government should try to protect its
interests before it is too late. The men in
Congress who are attempting to enforce
justice on these graceless and INSCRIPTIONS
corporations deserve the heartiest support
OF the press and the people.
In $685. when the subsidy bonds issued
to the Pacific railroads will mature, they
will be indebted to the government to the
enormous amount Of $122 200, 900, and
SIT, 600, 900 according to another mode Of
computation. The difference between these
computations turns on the question whether
the government is entitled to interest on
its semi-annual payments. If the debt
due from the roads to the govern
ment at the expiration Of the thirty years
consists only of the face of the bonds
and simple interest it will amount to
sl22, OOO, 600; but if the interest paid
by the government were compounded the
debt would amount to s177,OOO,OO0 In
equity the latter mode Of computation is
correct, but in law it is possible that the
Pacific roads can be held to pay only the
amount Of the bonds and accumulated SIM
pie interest. AS we do not wish to strain
the law against the roads we will assume
that their Indebtedness to the government
at the expiration of the thirty years will
consist merely Of the principal and simple
interest, the government losing interest on
it's advances. According to this method
Of omputation the amount which the two
roads the Union Pacific and the Central
Pacific--will owe to the government on the
maturity Of the subsidy bonds will be
Sl22, 900. 0O0 The total length Of the roads
is |, 800 miles, SO that when the debt to the
government natures it will amount to
s65, 900 per mile. The roads could be con-
structed anew for $4,000 per mile. 1t
hence appears that the value Of the roads at
the maturity Of the bonds will be SIS, 600
less per mile than the debt which will then
be due to the government.
1t is perfectly clear that the roads do not
intend to pay the debt. There is first
mortgage on the roads amounting to
sos, 600, 900, to which the claim Of the
government must be postponed. without
preventive legislation nothing is easier
than for the roads to make their property
worth merely this amount at the expira-
ton Of the period, and to cheat the govern
ment out Of the whole amount which will
then be duo. This danger OF the utter
loss Of the government claim was not
first brought into view by the
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