Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1878-05-04
RA1LRoAD QUESTION AGAIN.

we printed three weeks ago vindi
eating the rightof Congress to secur
the nation against robbery by com
pelling the Pacific railroads to estab
lish sinking fund to secure it deb
to the national Cover nment. Mr.
Chalmers, from Mississippi, in in
Producing in the House the repor
from tire Pacific Railroad Commit
tee, gives very able argument as
to the power of Congress to so amend
the charter as to secure such action
1t is well done and we give it be.
low:
Railroads, as artificial arteries OF
trade, have surpassed their prede-
cessors, canals, in importance, and
have become the rivals of rivers,
the great natural highways on
water, and the Pacific Railroad has
been called the Mississippi of the
East and West.
The policy of granting govern
mental aid to the building of a rail-
road to the Pacific was developed
soon after our acquisition of terrific
ry from Mexico, and, three routes
were surveyed, under orders of the
Secretary of War, for that purpose.
Sectional jealousies prevented the
adoption of either of these routes
prior to the war of secession, but
during that struggle the necessity
for preserving the Union, and the
danger apprehended from foreign
powers, fastened the consumma-
tion of this project.
In the act of 1862 large grants of
land and loans of credit were made
to the Union and Central Pacific
companies for the purpose of con-
structing a railroad from the Mis-
souri, river to the Pacific ocean and
chartered privileges were granted,
upon condition that the Government
should have first mortgage for the
repayment of its money, and that 5
per cent. of the net earnings, and
the whole of the transportation ac-
count of said roads, should be annu-
ally applied to the payment thereof,
with the proviso that Congress
may at any time, having a due re-
gard for the rights of said compa-
nies named herein, add to, alter,
amend, or repeal this act" These
words either meant something, or
they meant nothing. If, as is now
contended by some, no addition, al
teration, or amendment can be made
to or of this act, so far as the same
relates to the loan of money therein |
provided for, without the consent of
the corporations, then these words |
meant nothing, for eUe1y charter
may be amended, and every con-
tract may be altered, without origi-
nal stipulation therefor, provided |
it be done with mutual consent of
the contracting parties.
Prior to the enactment of this |
charter, the courts had held that a
charter was a contract, and that its
terms could not be altered by the
Legislature without the consent of
the parties, unless the power so to
alter had been reserved in the act.
With a knowledge of these decisions
before it, Congress passed this act,
and it is to be presumed that it in
tended what it said, namely, that
Congress should have power, at any
time, to "add to, alter, amend, or
repeal" the same, provided always
the purpose of thG'act remained I'M
changed. The limitation that such
power should be exercised with ta
due regard to the rights of the COM
panies" is a clear intimation of the
legislative belief that in the absence
of such limitation subsequent Con-
gress might make any alterations it
saw fit, without any such "regard
to the rights of the companies.
That Congress has power to amend
this act is evident from the fact that
It has already amended it without
dispute. This was done at the in
stance and solicitation of the corpO-
and conferred additional
benefits upon them, in 1864, by
the Government a second ;
and giving it but one
lalf its annual transportation ac-
count.
In this amended act the same
power to "alter, amend or repeaP |
vas retained, while the limitation,
having due regard to the rights
If the companies" was stricken out; /
)ut no words were used which indi- {
.ated any necessity for an accept s
Lnce of these amendments by the =
1t was not proposal i
or treaty; it was law. This act I
# 1864 lesSened the security of the
Government for the repayment of 7
is loan, by placing it in the posi-
ion of a second instead of a first {
nortgagee. but increased the power G
# Congress over it by striking out t
aid limitation. The security was i
Ieemed ample at the time, and if t
he affairs of the corporations were t
in good faith, might t
e so still but subsequent action of t
he directors and stockholders rem S
ers it highly probable, If not GER
ain, that the security is insufficient,
nd that if left to their uncontrolled r
iscretiOn it may prove utterly
worthless. This bill proposes to O
make that security more certain, n
pom the same principle that the n
Onds of public officers, mail con- o
factors, and of all parties who enter t
ITO obligations to perform any duty
} the Government, may at any time
e required to be made more secure. I
But, it is said, the loan of money
,as a separate and independent con- =
act. and that any alteration of this 7 Z
,t of Congress which affects the {
,an of money therein provided for ii
a violation of the contract and a Il
lost serious usurpation of uncOndi- 7,
onal power. The loan Of money :
as the fundamental idea Of the O
larter; without this it would have fl
cen fruitless, and the repayment of 81
lat money was secured in the act
1d nowhere else. 70 say that the
over to amend extends to every z
ling in that act except the right to
lake the repayment more secure, :,
necessary, is to violate every rule II
: legal construction. The loan of l.
loney without interest was the P
of this work, and II
le power to alter and amend was :
le main security reserved by the II
overnment to insure its proper +
h
Let us suppose that the act of 1862 ia
ad remained unchanged; that the tC
Overnment was the first mortgage, :,
nd that private capitalists held the y
,cOnd mortgage bonds, and that a
ley were here now appealing to OF
OngresS for such general legislation N