Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1882-07-25

gage, was inserted because it was shown
to be impossible to raise the necessary
funds upon the Government bonds, and
because the only way by which the money
could be procured was by soliciting the
aid OF foreign capitalists. The Govern
ment, and not the corporations, really had
violated its contract. For it had pledged
itself to loan them so many thousand dol
lars per mile, and when its bonds were
issued they were found to be worth less than
ifty cents on the dollar. Some of these
bonds, in fact, were sold as low as thirty
nine cents on the dollars, and because of
the low condition OF the Government credit
in consequence of the rebellion it became
necessary for Congress 10 grant the rail-
roads better terms, even to bring the con-
tract up to the basis of the original under
standing. Had the credit of the Govern.
ment been at par there would have been
no necessity for the supplementary Act of
1864 but the facS that its credit was not
at par certainly was not the fault of the
railroad companies, and to say that they
violated their contract because they could
not dispose of the Government bonds at
their par value is simply ridiculous.
The mendacious private organ to which
we have reference Gays the corporations
went to Congress and "whined about the
provision in the contrac. OF 1862, which
"gave the Government first mortgage
"on the road" This is another lie. They
did nothing of the kind. They merely
showed Congress that it was impossible to
raise money outside unless first mortgage
could be given as security for it /; and mas
much as Congress had not the credit to
supply the funds itself, it saw the neces-
sity OF stepping aside and enabling other
arrangements to be made. The first con-
sideration at this time was to get the road
| built, and the Government and the people
then held, and rightly, that this must be
done no matter what it cost. San Fran
cisco, in 1859, was very much of this opin-
| ion. She was then willing to lend 3d.
900. 600 to whoever would build the road,
| although afterwards she refused to per-
| form the contrac. she had made with the
Central Pacific, aud litigated it to the last
moment, without shadow of justification.
When violations Of contract are under dis
cussion, San Francisco journals ought to
be cautious about what they say, for their
own city affords conspicuous example Of
Just such breaches of faith in this connec-
tion. Our mendacious contemporary next
accuses the Central Pacific Company of
"swindliDg the Government and people of
80 the United States out OF about $50, 000,-
1000 worth of land" This is another
reckless falsehood. In the first place the
whole of the land grant to the company
was not worth the half of $50, 600, 000
In the second place the land, having been
granted, belonged to the company, and
since it was grant, it was certainly not a
swindie. The most enormous lies, how
ever, are constantly told about this land
and its valne. About one-tenth of it has
been sold, and probably seven-tenths of the
remaining portion is absolutely worthless,
and always will be. The land grant has
not Melted the company $1,000, 900 from
first to last, and this shows how much
truth there is in the stupid assertion we
have noticed.
The lying private organ of Hearst goes on
to accuse the Central Pacific of not having
fulfilled its contract with the State, and
here it is again guilty of shameless falaif-
cation. The same assertion has on two
recent occasions been made during the ses-
sion OF the Legislature, and each time it
has been the subject of investigation.
Each time the committee having the mat
ter in charge has been compelled to report
that there was no truth whatever in the
assertion that the company had kept its
contract not only to the very letter, but
beyond the exact terms of the covenant.
No longer ago than the last session of the
Legislature this old charge was revamped,
and once more received its quietus at the
hands OF committee. The fact is that
every provision of all its contracts both
with the General and State Governments
has been most scrupulously fulfilled, and
that though its enemies have repeatedly
endeavored to find loopholes of attack in
this direction, they have invariably been
bafiled. The shameless mendacity of the
I characterless sheet to which we have been
giving attention has apparently no limit,
however 1t proceeds to assert new
charge, to the effect that Z" there was al
"ways an implied contract that the rates
"of transportation should be reasonable, F"
but that many of these charges have
been, and still remain, by hook or by
crook, above the highest rate specified in
&c the General Transportation law OF the
estate" Here we have more wild and ut
terly irresponsible Misrepresentation. The
truth is that the rates of freight and fare
have never been anything like as high as
the company was legally entitled to make
them that they have been lower in pro-
portion than those of nine-tenths of the
Eastern roads that they have been steadi-
ly reduced from year to year; and that
they are now and always have been en-.
tirely reasonable"
OF course when an irresponsible serib-
ingless phrases as "impled contracts, !"
he can make anything of them he chooses,
since all he has to do is first to invent
his supposititious implied contract, and
then to accuse the company of violating
it. This is all beside the point. We are
not dealing with distractions, but with
realities. We assert that the Central Pa
cifc Company has kept all its contracts
with the Government, and that instead of
having robbed anyone it has benefited the
State and nation intellectually. Take in
illustration the land question alone. In
his work on the 4" Commerce and Indus
"tries of the Pacific Coast" John S. Hit
tell states that ga strip of land through
'the San Joaquin valley, of width of
Twenty miles, on each side of the rail-
"road, aggregates 5000, 900 acres; and it
sis estimated by reliable statisticians that
these lands have increased in value to
"the extent of $4,000, 600, since they
I" have been opened up by the railroad. "
The same authority observes in another
place: 1.-The area of fertile soil that has
" been granted to railroads. and that