The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1878-03-21
SENATE.
Mnshinpton. March y. lS78.

In the Senate NJ. Thurman (Dem o. reported
with amendments, the bill to prohibit members OF
Congress from Dt coming surlties on certain oonos
and il was placed on the calendar. He said mat
II would probably incur no opposition.
William A. Wheeler laid before the Senate
communlca from Carl Schurz In answer to
recent resolution Of the Senate relative to timber
depredatlons In the Territory Of Montana.
Mr.. Matthews (Rep, 0)said the communication
was long, and he therefore moved that 1t be refer.
red to the Committee on Public Lands, and be
printed in the Record
Mr.. Sargent (Rep. Call Obj 2ced to enoumoerlng
the Record with such documents.
Mr.. Matthews then demanded that the paper be
read He said that during recent debate the
course of Carl schuH In these timber cases had
been commented upon, and his reply should be
printed in the Record
Mr., Sargent said that SchurSs timber policy, II
carried out, would ruin many industries in sever
al Western States and Territories
Mr.. Matthews said that he desired to reply to
the Senator, and would have the communion read
as q part Of his remarks
Mr.. Sargent made the point of order that the
Senator had not the right to do this
William A. Wheeler submitted 1t to the Senate
and 1t was overruled.
Mr.. Sargent then objected TO the further consid'
Grafton of the motion to refer the communication
to the Committee on Public Lands aud under the
rule 1t was laid over until to morrow.
Mr.. Conkling (Rep N. " called up the Senate
bin in aid Of the Polar Expedition, and II was
passed unanimously without debate. 1t author
ICES John Sherman to issue an American register
to the vessel purchased by James Gordon Bennett,
under the name Of Jeanette and also authorizes
R. B. Hayes to detail with their own consent,
commissioned, warrant, and petty officers OF the
navy, not to exceed ten in number to act Offices
of this vessel during her first voyage to the Arctic
seas, provided that such detail shall be made of
such officers only as can be absent from their
regular duties without detrment to the public ser.
vice
Mr.. Spencer rep. Ala called up the House bill
for the relief of VIM, A. Hammond,
Mr. Plumb (Rep Kan) spoke against It,
Mr. Conkliug said that Dr. Hammond was cit
zen fNew York, distinguished for his talents and
his achievements in the field Of science. He had
been spoken ofbitterly and urjustly; but time was
of more Importance than anything he (Mr. Conk'
ling) could say as the friends Of the bill hoped to
get vote upon 1t, therefore he would not reply
10 the Senator. DR.. Hammond was tried by a
court oflimited and special jurisdiction in the din
and chaos of great war. He was not convicted
Of personal turpitud1 OF venality, Of treason to
his trust, or Of making gain improperly for him
self
The bill was passed-yeas S. nays, l; Mr.
Plumb
The bill referring the claim OF Benjamin Holla-
day IN the Court Of Claims was recOmmitted TO the
Committee on Claims. with instructions to re-
port what amount L any is eqnitably due the
claimant
Mr.. Thurman tDem o. called IN the bill re.
ported bv the Judiciary Committee in regard to
the Pacific Railroad sinking fund ard said he
would sneak in explanation Of It, leaving the
question as to the power of Congress to pNss this
bill to another member Of the committee, The
object Of the bill was To create in the Treasury Of
the United states sinking fund for the purpose
of paving the debts Of the Union Pacific Ind Cen
tra Pacific Railroad Companies The hill as orig
iuallv introduced include1 the Central branch Of
the Union Pacific road the Sioux City and Pacific
road and the Kansas Pacific road butthese roads |
were stricken out of the bill for reasons stated in
the rpnOrt This sinking fund was not for the |
benefit Of the Government alone, although the
Government was the principal creditor Of the
road The bill carefully guarded the right of ev.
cry creditor and made the sinking fund a security
for all debts of the companies according to their
priority The Government had loaned the Union
Pacific road in bonds running thirty years and
bearing interest At the rate OF six per cent |
rler annum S27 512 The thirty wears interest |
on that amount would be $40 OPS 100 making a
total due the Government a. the maturing Of the
hOnds of S76 2G2 24, providing the Government |
did not receive in the meantime any reimburse
ment of the interest paid. TO the Central Pacific
the Government had loaned bonds to the amount
of S27 7Sj5GS0 and he thirty years interest on
this amounted 10 $50 40 22i making a total of
977 995 904 It was the duty of Congress to begin
to look out for something to secure the Govern
ment against loss The companies themselves,
although they had been the recipe IT'S of the most
lavish bOunties ever bestowed upon any corpora
ton by any Government, had not provided one
dollar for sinking fund toward paying their in
deb;ednesS. Instead Of providing for such sink.
ing fund they had divided among their own
their enormous profits The Union
Pacific Company had declared dividends Of eight
per centum on the nominal value of its sock
equal TO tWalve per cent Of its market value, and
the CentrnlPGcifc had declared dividends of from
eight to ten per cent, on the nominal value of the
stock The other Indebtedness Of the companies
was as follows: Union Pacific road, S5i 497 000
and Central Pacific road, S554j70OO The Com
mittee propose to define net earnings for tn. fu
ture only; as to what had constituted them in the
past the Supreme Court must determine. The
bill was fair and just and no man could deny that
it was liberal. After providing for the sinking
fund the Union Pacific Company could still de-
clare diyidends OF ~ per cent, and the Central
Pacific dividends oft 100 per cent on the nCmi
nal value of their stock TheTe was not one rail
road in fifty In the Uuted States paying such div
idends. In less than twenty year fiOm now these
corporations would be the richest corporations on
the face of the earth. 1t might be asked why
then do you require a sinking fund.- Why do
you want security? Experience has shown that
no matter how rich a railroad company might be.
come security must be given for the payment Of
lis debts.
Mr.. Davis Ind. ILL., spoke of the necessity OF
making some provision for the payment oil the in
due from these Pacific railroads. and
argued that Congress had the right to pass such
Dill as the one proposed. He referred TO the 18th
section Of the act Of July /, 1862, charteEing the
road, wherein Congress reserved the right to add
o, alter, amend or repeal the act, and said that
he passage Of the pending bill was nothing be.
7Ond the exercise Of justly reserved power. He
quoted at length from legal authorities in support
If the power Of Congress 10 pass the bill and ar.
5ued that the public Interest required it,
The Senate then went into Executive session.