National Republican., 1882-12-20
mittco of the whole (Nr. callsins in the chair)


panics which have received bond subsidies in
addition to grants of public lands shall receive
as compensation for carrying the mails 80 pcr
cent. of the amount now allowed to them for
that service.
Mr. Robeson explained that his amendment
was intended as an amendment TO the charter
of these railways declaring the legislative
intention. 1t did not reduce the compcnsa-
tion largely ii reduced it only to 50por cent:
and when that reduction was made those
roads would still have more compensation
than any other railways in the country. This
legislation was necessary in order that the
question whether congress has or has not con-
troll over this matter should be brought
fairly to the test of judicial decision
and settled for the present and the future
Mr.. Caswcll opposed the amendment as
being in conflict with the rights which some
of the railways aimed at had obtained. Con-
gress could not invade vested rights. He
would not talk about the merits of the ques-
tion; but he could not give his assent to n
proposition, which he conceived to he a plain
violation of the rights of q corporation. If
this amendment should be adopted il would
fall short of the purpose intended by its au-
thor. 1t would not affect the Union Pacific
or the Central Pacific in the slightest degree
ana these were the two great corporations at
which it aimed, but would be cffcctual as to
all other smaller land grant roads which had
hard time of it already.
Mr.. Robcson stated that his proposition af
tectcd no roads except those which had re-
ceived bonds in addition to land grants.
Mr.. taswell replied that he so understood
u, but that It would be Intellectual as TO the
Union Pacific and Central Pacific, because
they had vested rights which could not be
taken away or invaded by this house. The
question had arisen whether the compensn-
TO these railways was governed by the postal
laws that governed other railways, and the
Nt NtNNn ,vA l.. 4 4
statute did not apply to the Union Pacific
railway company because there was n pro.
vision in its charter that it should have fair
and reasonable rates. At the present time
there was no fixed rate allowed the Union
Pacific or the Central Pacific for CARRYING the
mails. There was sufficient confusion now
existing between those companies and the
Pnstol'icc department, but if this amendment
ihouId be adopted confusion would he pilcd
ipnn confusion, for who could determine
what htty per cent. of an unknown quantity
was.
Mr.. Hewitt opposed the amendment. Com
SresS llad sought to compel the Pacific railway
companies TO carry the mails ut the rates at
which the land grant roads were compclled TO
carry them. The case had gone to thc s,I-
rrcnc court, and that court had decided that
the PdciltC roads were not subject TO the nostnl
IoNS, nut mat there was a law for them which
M@' iaid down in their charters. In view of
that decision came this amendment which
proposed TO alter and amend the charters of
these railways so as to subject them to thn
provision of this law. In other words here
was proclamation which sought to insert
INTO the charters of these companies Il condi-
tlon subsequcnt end the authority for MAX
ing this new condition was claimed to be the
rlEht to alter, amend, and repeal the original
octS lie woIld not pretend to express an
opinion as to whether the decisions in the
yynn f,,
chat the right to alter and amend con-
ierred this power on congress- To him |
IL was lmmaterial whether that power rested |
In congress or not, If it rested here, il ought |
not to he exercised; because if the power cx- |
listed IN the house to cut down arbitrarily the |
compensation allowed to these companies to so |
percent, there was no reason why il should not |
require these railways to do this work without
compensation at all. There was no limit but
the sense Of justice which rested i'm members
ot congress. In the charters of the companies
there was provision that the rates to be paid
should be fair and reasonable. The right TO
alter and amend the charters WINS reserved in
remarkable language, And the better to ac
complish the obligations of this act, congress
may at any time with due regard for tho
rlEhtS OF sand companies, to alter, amend, and |
repeal this act"
re was no lawyer; he was not very familiar
w u charters but he had never seen a clause
an! c'"'r,er IN Whlch that peculiar language
WAS inserted, "having due regard to tEn
l|trs OF said companies" The object souchi
""' canned by the original acts was the build
"i n great highway, and every inducement
44.b'teuln the grant an incentive to engage
g, "iNate capital and enterprise in this scheme.
was done, and now the house was asked to
come III and take away the very incentives
"AiGh were proposed TO the men who built the
l"Au' was congress prepared to begin the
work OF the confScatiOn OF private proucrtv2
: might have the right, the physical right TO
40 thlS thing, but was IL prepared to begin the
WORK OF conisCation, which, when once nm.
l|oN'd ~ a vote of the house, would procoed
wish fearful strides until il ended in ,hr l.gi. |
Cal result communism. lie held tbnt ovcry .
man VINO became a stoCkh0ldyr in d Uvly /
acquired right of private property. aud II .
congress took away by legislation auy of tho |
corporate rights guaranteed by the povcrn |
mcnt, and did it against a promise NOT IN do |
it, II invaded the right of private propcrtv
ana the only legitimate and logical result WINS
land. ''''
II this amendment were founded ON GOOD
principles, why fix the compcnsation nt ffIv
ler cent? Tho amount allowed the Pacific
railways FOR carrying the mails during last
year was SI39OOO. Fifty per cent. of that
amounted to about $3G90O0. If the govern.
!i"en' wanted to get any compensation for its
LOO 5."h'H VI iahus ana bonds S360000
was scarcely worth CONSIDERING Let il take
the whole S!3J,00O and put it into tho treas
uIE as some compensation to the government
lor lhe great loss which certainly awaited il
When the bonds matured. The amount due in
lne government immediately after the passage
VI the thurman act was S99000OOO The
amount due ON the last thirtieth of June was
Hl'Joo0MO-An increase of S4OOOOOO in one
year II the government were to-day to take
possession % uiIS property it would have to
take 1t subject TO prior liens OF $82 600. 600
The result would be that these roads
would W0nuId -, cost the government $lG5.0OO,-
ooo' there was an impression aboad
IN TINS country that these railways did
not intend to pay the debt due to the United
States lie confessed that he shared in that
impression. He did not believe that tbcy
would bc able to pay it. There was but one
pailisr III the way of the obligations of the
people 10 lake these roads, ard that was the
4Peratlon oi me Thurman sinking fund act.
that funds would be provided sufficient nj
least to liquidate the prior debt But in the
report OF the commissioners of the Pacific
railways, there was a statement that when
the ueDt matured there would he due TO the
government the sum of $7l 100000. Add
lhat to the $62,0O00O0 first mortgage bonds
and II would be seen that $l33, 900 900 was the
minimum lien which wOuld be on these roads
lie mad not been unObservant of the policy of
these companies. They were securing other
Ioadslndependent oftheir own roads and he ex-
pected to see them abandoned, and the people of
lhe country would be brought face to face with
the great question of administering and own
1ng railways. The proposition brought before
the house would diminish the sinking fund by
the amount of 80 per cont. of the compensa-
tion now allowed for carrying the mails, for