St. Paul daily globe., 1884-10-21
HONEST OLD THURMAN.
A Statement from the Lips OF the Old Fdr-
Horse ofthe Po,cerJttI Opposition of
the PGciJfcS, Led 5u Blaine,
"a His E,tndi00 Bily.

the PGcifcS, Led 6u Blaine,
10 His Funding Ban.
lColumbus Special Correspondence
Publications of Sentor Edmaunds' opinion
of Blaine's opposition to the Pacific rail-
road sinking fund bill having revived inter-
est in that act and the circumstances attend
ing its passage 1 called on ex-senator
Thurman at his old fashioned red
brick residence in this city to learn
his opinion of the matter. The oldstates-
man was found in his law Office next
door to his dwelling, seated in an old cane
seat chair before large table literally strewn
with papers, books and documents. All the
surroundings-plain, Democratic and un-
pretentious-bespoke the qualities of the
owner.
'When discovered the great risk the gov
ernment was incurring in its loan to the
Pacific railroads." said Mr. Thurman, ''Sen-
ator Edmunds and put our heads together
to discover a way out of the difficulty. The
government, you will remember, had loaned
the Union and Central Pacific companies
S55, 600, 900 in bonds, and had agreed to pay
the interest on that sum for thirty years.
At the end of the thirty years the companies
would owe the government, should nothing
be paid, more than $50, ,000,0 600. According
to the original act the companies were to pay
the government 5 per cent. of their net
earnings each year and refund one-half OF all
moneys the government may have paid them
for transportation. Granting that the roads
would continue fairly prosperous, and that
they would honestly pay these stipulations,
their Indebtedness TO the government would
be reduced only some $50, 200, 900 during
the thirty years, leaving S120, ,000,0 900 or so
still outstanding. This would be secondary
claim, the $50, 600, 900 prior lien mortgage
over shadowing it. l foresaw that the gov
ernment might never get its money. So
Senator Edmunds and L drew up a bill in
1876. But as we were both called to the
electoral commission that session were not
able to do anything. In 1878, after chang
ing our bill, it was reported by the Judiciary
committee. Isuppose no committee ever
listened so long and so patiently to the ar
guments of interested parties as we did on
that occasion. The companies attorneys
seemed to want to tire us out and to secure
delay. But the bill was finally reported, and
given into my charge. Up to this time the
companies had been paying large dividends,
| but had entirely evaded the law requiring
them to establish a sinking fund. Our bill
1 made it imperative that they should sci
| aside one quarter of their net earnings each
year as a fund to meet their obligations to
! the government. This would not have paid
the entire debt, and 1 was criticised
because the bill did not 60 far enough.
admitted that, and regretted it, but
was confident if we asked for more We could
not get the bill through at all. In fact, II
was extremely doubtful if We could pass the
bill as drawn.
''Immediately frightful lobby sprang up.
1t was tho most formidable lobby ever saw
in Washin gton. Gould, Huntington anC
Dillon were all there together. As for rail
| road lawyers aud agents. the town was full
Of them. They carried tdings with such &
high hand that it was hard to tell what to ex
pect or in whom to place confidence. A
one time the lobby thought it had US down
and l feared SO, too, but We kept up the
fight.
''The first move against Us on the floor o.
the senate was bill prepared by Dorsey, o
Arkansas. This passed through the railroad
committee, and was reported by STANLEY
Matthews. 1t seemed similar to our bill
but virtually amounted to giving the com
| paulcS SfU,OOU,OOO AAlSi OLS oC
bate had run on a week or two Blaine took
hand in it. 1t has been publish ed that Blaine
called on me at my house and tried to in
fluence me TO withdraw my bill. That is no
true. Blaine d;d not call on me. But at hi
request, at his house, | explained to him
portions of my bill which he said he did no
understand. Shortly afterward he proposed
an amendment TO our bill. 1t was a propo
sition that in consideration of the cOmpanie
agreeing to establish The sinking fund con
gress should surrender its right to change o
legislate upon the original charter. Tn
amendment was designed to kill the bill.
never could see what else it was propose,
for Had it been adopted neither Senate
Edmunds nor myself would have voted TO
the passage of our own bill. Rather thai
that the government should surrender thi
right then said and now say we might bet
ter have thrown the money nvolved into tn
Atlantic ocean. We had hard fight. Sen
ator Edmunds made powerful speech an
so Gid Senator Bayard. / made two sc
speeches. The lobby tried with all its powe
to secure the adoption OF that amendment i
order to kill the bill but we beat them
Blaine, Matthews aud Dorsey were the mo;
powerful men in opposition to u.s."