New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-01-05
CENTRAL PACIFIC RAILROAD
REVIEW OF THE TESTIMONY AND
EXHIBITS.
PRESENTED BEFORE THE PACIFIC RAILWAY CON-
MISSION.

EXHIBITS.
PRESENTED BEFORE THE PACIFIC RAILWAY CON-
MISSION:
l.
THE PUBLIC POLICY THAT LED TO THE PASSAGE
OF THE ACT OF CONGRESS
The Central Pacific Counsel have submitted
statement to the commissioners which they ask
may accompany their report.
When the subject Of the construction OF trans
continental railway was first proposed, the MISS
issippi River practically constituted our
Western frontier, and Texas was en-
gagged In her war OF mdepeho-
epce. The matter had been preached In Congress
before that State had come into the Union. When
Mr.. Douglas introduced his first bill for the con-
struction of railway, the war with Mexico had
not begun When the Mexican war was closed
there was not a single mile of railroad west OF
the Mississippi; and IL not until lSos thab
the railroad system Of the country was connected
with the Missouri River by the completion OF the
Hannibal and St. Joseph Railroad.
H.
CONTRACT BETWEEN TIE UNITED STATES AND
THE CENTRAL PACIFIC.
By the passage of the Act of s62 and the ac-
ceptance of its terms by the Central Pacific Rail
road COMPANY, q contract was created between
it and the Government, by which the Company
line. from the Pacific coast at or near San FRAN
cisco. or the navigable waters of the Sacramento
River. to the eastern boundary Of California.
urovided that the said Company should reach the
boundary before it met the line OF the Union
Pacific: the Union Pacific being authorized, with
the consent of the State of California, to construct
through California until it met the track OF the
Central Pacific and if the Central Pacific should
first arrive at the boundary Of said State, then IL
might continue the construction OF its railroad ana
telegraph line eastward, to such point as IL might
connect with the Union Pacific.
| Tn aid of such construction the United States
agreed to donate every alternate section OF pupic
land designated by odd numbers, to the amount
of five alternate sections per mile, on each side OF
said road on the Inc thereof, within ten miles Oh
each side of the road not sold, reserved or other
| wise disposed of: the title of said land to be
vested in the Company when it should have COM
pleted forty consecutive miles OF railroad ana
! telegraph and that on completion or SAID secoioi
the Secretary of the Treasury should issue TO inc
| Company bonds Of the United States payable
thirty years after date, bearing six per cent. per
annum interest, payable seml-annuaiy, 10 INC
amount of sixteen Of said bonds per mile, ont from
rho western base of the Sierra Nevada Mountains
| lsuch points to be fixed by the President OF the
United Statcs,) the bonds to be issued should be
ut the rate Of s4s, 900 per mile for one hundred
and ffty miles eastwardly; and between the
| mountainous sections at the rate OF $4,000 per
mile: the Central Pacific to complete fifty miles OF
said railroad and telegraph line WITHIN TWO
years of filing their consent to the PROVISIONS oi
| this Act and fifty miles each year Thereafter; tie
entire line between the Missouri River and the
| Sacramento to be completed so as to form con-
tinuous line of railroad, and ready for use by
| the first day of July, 1876.
| The Act provides that the issue of said bonds
and delivery to the Company shall ipso facto con-
stitute first mortgage on the whole line OF the
railroad and telegraph, together with the rolling
stock fixtures, and property OF every KIND ana
description and IN consideration of which, said
! bonds may be issued.
| That the grants Of The said lands and bonds are
made upon condition that said Company shall pay
said bonds at maturity, and shall keep It's said
railroad and telegraph line in repair and use
| and shall at all times transmit dispatches over
said telegraph line and transport mails, troops
and munitions of war, supplies and pubic stores
on said railroad for the Government whenever
! required to do so by any department. thereof
and that the Government shall at all times have
the preference in the use OF the same for HI the
purposes aforesaid at fair and reasonable rates
of conversation, not to exceed the amount paid
| Nv pryate parties for the same kind On service !;
and all conversation for services rendered for the
| Government shall be applied to the payment OF
| said bonds and interest until the whole amount
is fully paid and after said railroad is competed
until said bonds and interest are PAID, at least
| five per centum Of the net earnings OF said road
shall be annually applied in the payment thereof
| These are the express terms OF the contract on
the face of the agreement But there was an I'M
| plied. IL not an express understanding between
the contracting parties as voiced IN the various
| debates in both branches OF Congress- that IN au-
dition to the veper cent of the net earnings to be
| paid annually after the completion OF the ROAD
| the Government would look only to the perform
oncc OF that portion Of the contract by which the
! Railroad Comnany undertook to do its telegraph
business and transport its mails, troops and NUM-
| tions of war; and public stores for the repayment
OF the principal and interest Of the bonds
From those debates, and especially from such
| nortions which we have heretofore re-
| ferred to, it is evident that not q
single vote was cast in favor OF the
massage of this Act with any expectation that the
| Government would receive from the Railroad
| Companies in reimbursement one dollar III al
dition to the five per cent, and the services
| rendered in such transportation.
The hill carries the idea, and this section provides
for the repayment OF the loan, as gentlemen eau IT,
Tn subsequent section. II is provided that the pay
n,ont shall he made In the carrying Of the malls sup
niles and military stores for the Government al lar
prces and also per cent OF the net proceeds or sums
70 no set apart for the Government That Is all tho
| nrovision there is In the bill for repayment
| Mr.. Wade said:
Sir your money will not be lost In pccuniary
poInt OF view 1t will be gain 10 this Government to
| make these facilities for settling this wilderness III
will sire gthen In military point OF view IL VIII
Strengthen the Union which IS more than all 1t will
do more for the country than we have done for any
| number OF years past.
Mr.. Kelly said:
Can there DO any question that country can bear
| such an augmentation OF Its annual expenditure, or
will IL harm II postery, being blessed by this work
| should perchancc, have to pay the principal OF the
| credit investedf
Mr. white, of Indiana. expressed the views certainly
then entertained by majority Of the Representatives
| lie said:
Now sir contend that although this bill provides
ernment IL is not expected that cent Of the money
will euer he ronald Ii the committed intended that Il