The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1878-04-18
THE GREAT RAILROAD KING DE.
EEATED

uuires the Union Pacific and Central Pa
cific railroad companies to set aside one
fourth oftheirnet profitsas sinking fund
for securing the advances Of bonds and
payments Of interest by the United
States Treasury. 'N
The measure passed the Senate after a
long struggle, and indicates an import
ant change in the public policy of the
country. 1t is she first serious blow that
organized corporate power has received.
For fifteen years and more, under abso-
lutte Republican sway, these organiza'
tions have plundered the Government
and the people.
The Credit Mobilier swindle was in
the interest of these companies, and q
hundred millions would probably not
more than tell the robbery. Such VIC
tory was impossible before the Demo.
cratic accessions to the Senate, There
has been no buying of committees this
time by wholesale, and the bill passed
by over two to one. Truly moral re-
form improvement is manifest in this,
Jay Gould, Huntington, their associates
and allies, have been for some time aware
of the danger, and have spared no labor
and expense to avert it. They were all
in Washington, male and female, and
that powerful lobby were directed aad
managed by stationary agents and coun"
sci who we're skilled in their business.
They beset the Judiciary committee, but
could not prevent the bill being reported
back. After this failure, they got the
Matthews bill reported from the Railroad
committee in order to antagonize the
Thurman bill. This scheme had the
odor of the ring to such an extent that it
was withdrawn.
The next scheme was to kill the Thur
man bill by amendments, and Blaine,
Efigy Sargent and Chaffee heartily en-
gagged in it but failed. 1t was ingeniously
Contrived, but as Judge Thurman said,
it was as prussic acid to the genuine bill.
Mr.. Blaine was probably over jealous in
his effort, for he represented Jay Gould
as an injured patriot. The proposed
amendment was to make the present
legislation final, 80 that no future Con-
| gress would have any power over these
corporations. The test vote, which was
on the amendment, stood yeas 23, nays
35. Seven Democrats voted with Blaine,
and nine Republicans against him, Eigh-
teen were absent, of whom fourteen were
paired. After this defeat the Thurman
bill gained FIVE converts. The winning
side has attractions to politicians, and
sometimes these exhibit remarkable agil-
ity, 8.
The measure is still stronger in the
House. The Committee on Railroads
are for the bill except two, one Repub-
lican and onea Democrat. Jay Gould, too
will have the satisfaction efseeing Hayes
sign the bill, the man whom he helped
to put in the White House by his per-
sonal influence and his money. His or.
gan, the New York Tribune, will not pre-
vent this act of justice.
In speech made during the debate
on the question of compelling the Pacific
Railroads to reimburse the Government
for the money it has expended for their
benefit, Senator Morrill,, of Vermont,
made clear and concise statement of
what the roads have had thus far from
the United States. 1t puts the matter of
their obligations to the Government in
80 plain q light that no one need misun-
derstand it. He said:
I lFirst-We have given to them, as es-
timated at different times by the general
land Office, from twenty to thirty million
acres of public lands, not wholly ofmuCh
present value, but with abundant coal
fields Of priceless value, exceeding even
the inexhaustible anthracite coal beds of
Pennsylvania, and affording cheap and
marketable product, as we'll as supreme
element in the cheap operation of the
road
Second-We aided by lending the
companies our six per cent bonds for
thirty years to the amount of $57 062 1872
secured at the outset by first mortgage,
and these bonds now bring in the mar.
ket over eighteen per cent premium. We
gave our security and took theirs to cover
an exactly equal amount.
Third-We consented to change the
place of our mortgage security from the
first place to that OF subordinate, and
gave to the companies the privilege of is
suing an equal amount with prior lien.
Fourth-The whole of their charges
for services in carrying the mails and
other transportation accounts by the act
of 1862 were to be at once applied on
their Indebtedness, but by the act of '64
only one-half was to be so applied.
Fifth-In the first act all the coal beds
were reserved to the United States, but
in the last they wholly surrendered to
the railroads.
9ixth-We have thus far paid the ac-
Cruing interest on the second mortgage
bonds Qess the amount reimbursed) to
the extent of $24343 91236. We must
continue the payment of this interest as
it falls due for twenty years longer, or a
further sum of $66.11062040. Nothing
Of this will be DUE Simple interest upon
these payments at six per cent will be
nearly or quite S70000000. If this also
is not debt when we are paying six per
cent upon loan of millions, then it is
gratuity largely in excess of the original
bonds, and one of those things never
dreamed Of in the philosophy of Con.
gress.
The account stated as between mer-
chant and merchant, or between man
man would show that beside lands, be-
side coal mines, beside credits, up to the
year 1900, we shall have aided these cor
as already indicated, to the
extent of not less than $217.5l6.624.76.
The object of the bill which, after two
years effort Mr.. Thurman succeeded in
getting through the Senate last week,
Tuaadav ia tn nomnal tho roada IN aat