Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-02-06
TEE cossoLIDATIos QUESTION.

Va '"e southern racine route. The question
before the committee was on the adoption of the
substitute offered by Mr. Kelly to the resolution of
Mr.. Del Vale, and also on the amendment of Mr..
Spencer.
Senator Kelly supported his amendment because
he cid not believe, a legal proposition. that tbera
is any authority for the action proposed in the
Constitution Of the United States, or any OF the
statutes passed under it. He did not think there ia
such thing az FEDERAL corporation, and believing
that to be the case he was not in favor of SAYING
legal proposition, that the results OF combining
with any other company would have the eject Of
making this
A FEDERAL CORPORATION.
II this proposition Of consolidation viii be delete
posed to it, and was also opposed to its going on
record that the result of the consolidation will be to
effect Federal corporation.
After some debate as to the method of proceeding
with the debate, Sc ator Reddy said Here is a
body created by the State, who asks to be relieved
from the jurisdiction Of the State That is the oDy
question involved 1t has been created in this State
and wants to do business in this State, but free
itself from the original control Of this State That
is the question.
MR.. RAYMOND
don't think that is the queetion, ard don't think
that this bill frees it from any obligation to the
State of California. You assume what we dent con-
cede and we don't ask for any delay, but we ask to
be heard.
Senator Kelly-There is no way to incorporate or
create a corporation under the laws Of the United
States that know Of
C.nator padI, Va, -o;zod A. o,,...;e. - ~
power Of the General Governments to create such a
corporation? But is not the question here, that we
don't want it, whether the Government has the
power or not?
After further discussion as 70 the real ssues
it was ordered that Mr.. Raymond openand close the
debate, having one hour allotted for each Mr.
Raymond then addressed the committee.
Mr.. Raymond spoke for about an hour, until re.
cess He described the entire transcontnental rail.
road systems, referring frequently to a large map
He outlined all the Acts of Congress authorizing
railroad construction, and explaining the relation Of
one to tie other. There was a large attendance,
and Mr.. Raymond was listened to with profound
attention. His speech rose to high plane of i'm
pressive eloquonee. After recess
SENATOR CROSS
Addressed the committee saying In the Senate, afew
days since, when this resolution was proposed asked
that it be referred to this committee and gave as
for the motion that believed the resolution
contained three direct statements Of falsehood.
said then that would investigate this resolution
for the purpose Of determising that matter before
should put myself upon record upon that PROPOSE
tion. l have not yet had time 10 consider it as L
should like to have done on account of illness
and other matters which demanded my attention.
Mr.. Cross said he spoke as Senator, as a citizen
and as man. He believed all these were contained
in the words, al am Democrat" AS Democrat
he could never consent that Congress could by any
act take from the control OF the State any OF the
taxable property Of the State after the decisions
of the Supreme Court Of the United States. What
ever property is within the limits of the State is un-
der the control OF the State AS citizens of Cafor.
nia in what position will this resolution place u.s. if
by it say the Central Pacific Railroad and other
roads are freed from State control? How could the
State if Congress passes the bill after the declSra
ton the State Is now asked to make offer to exer-
else control these roads Suppose the next day
Mr. Del Vale should introduce bill to control the
railroads OF the State, in what position would we be
placed2 Would it not be
CASE OF EsToPPRL.
He proceeded to say that States have rights the
Federal Government cannot take away While the
latter may pass laws and may incorporate com.
panies to carry out the functions OF .he Govern
ment, such IS military 9, stI it has a ight b
foraa corporations to lo exsaYt from Sts- eoKtrsi
When he YVES asked as Senator to declare that, by
the passage of the Act pending in Congress to con-
solidate the roads. the State OF California will
lose her control over the Southern Pacific Railroad,
he replied emphaticaIly, No, tir He was willing
to place himself squarey on the record to the effect
that the State
DOES NOT LOSE CONTROL
Over these roads, so far az taxes are concerned,
whether the Act passes Congress or not II the
SeHat1 adopts the resolution it takes the response
blity of the truth Of it, Mr. Cross here referred to
the proposed Act, as he had seen it. 1t proposed
Simply to make one continuous line on one route
and prohibits the consolidation of any parallel roads
He read from the Act and analysed it. He said that
California claimed the right to control the roads
within her borders first, to regulate freights and
fares second to collect taxes on all property owned
by those Dads within the limits of the State He be
lie ed her claims to be just and true and when the
resolution admits the possibility OF their being
taken out Of such State control it rectes n false
hood. 1t is fasehood because the question has
BEEN BEFORE THE COURTS
Again and again, and their decisions have been uni
formly in accordance with these views He cited
18th Wallace Reports United States Supreme Court,
Union Pacific Railroad Company vs. Peunison, in
support of his yiews. He read from the case, be-
xx,itb < tI,a+
Court of the United States has laid down the law
that although railroad company may be chartered
by the United States Government and carry out the
franchise OF post AMI military road that still such
road is under and Subject to TIE control of State
and subject to taxation therein, as much as any
other piece of property in it, and subject to what.
ever rule Of law the State may see ft to impose
upon 1t.
Mr.. Cross said be took Il to be well understood
and settled that the State has the control Of rates of
freights and fares within the limits of the State.
Within State limits the Federal Government has no
right to infringe upon the powers Of the State to
tax these corporations and to control them. For
one, he would yield up this State right. and
the Government at Washington cannot deprive the
State Of
THAT SOVEREIGN RIGHT.
Mr. Gross dwelt on this branch Of his subject at
length and with great earnestness and an eoquence
tnat kept the attention Of his audience completely
He spoke for something over an hour, and delivered
what was certainly most effective argument
J. Ii. Budd, Congressmane elect, then addressed the
committee favor OF the resolution He took
the ground that the Act OF Congress under consid-
Grafton contained deceptive clauses. That the ter.
mini set forth in the Act indefinite and would
permit consolidation by the Southern companies
with auy other companies touching at any points on
any Of the waters either side. He held that the
Act revived the old charter of the Atlantic and Pa
cifc Railroad, and that grants and privileges to fix
freghts and fares would be revived also, and could
be exercised by the new company, ard that the Act
will revive all apsed land grants the new company
may connect and cons llidate with.
As Mr.. Budd made these several assertions they
were replied to by Colonel Hsymond and Senator
Cross, who pointed out that kr Budds argument
was based on mere and forced technieaIities and
strained conclusions and false predlcates Colonel
Raymond said that in proof of it the contestants
were willing that the bill might be amended
TO COVER ALL THRsE TEcHsIcALIr1Es
And objections All the railroad people wanted was
the right to operate the lowest economicsi
plane one continuous line from the Gull