Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1888-03-24

Wneu It's existence as q nation hung IN the bal
ance, with patriotic faith in the final result ard
Its magnificent future bore its credit lying upon
his shield, | would throw the whole of that
property into the sea, and rather see it perish
from the face OF the earth.
am not here to defend the character of
Oakes Ames-he needs no defense at my hands.
When the name and existence of his slanderers
have long been forgotten, the memory OF his
acts, his devotion and fidelity will remain
part of the rich inheritance of those who will
occupy in peaceful pursuits the lands which he
reclaimed from the savage and the wilderness
and gave over TO civilization. to become the
home of happy and prosperous people.
1t would be hard 10 convince the noble pio-
neers of my own State that Cakes Ames, now
unable to defend himself. deserved at the hands
of the United States the disgrace which this bill
will bring TO his memory. In the early days OF
California well remember that that name
stamped on a shovel or pick was all the assur-
anee that hardy miner of that State wanted as
to the excellence and worth OF the implement.
But il Mr.. Adams is tired, and driven by cir
| cumstances which ii seems impossible for him
to control TO accept such measure, ! want to
put it upon the record now, that Leland STAN
ford, Charles Croker and c. L. Huntington the
survivors of the projectors of the Central Pacific
Railroad Company, are neither tired nor dis
heartened Age has come upon them it is true.
Their step is not as firm nor are their eyes as
bright as when for three winters they struggled
on the SUBMITS of the Sierras and triumphed
over nature itself. But while they may not be
as young as they were then, yet age has not
cooled the blood of our Douglass and before
they viii submit to any measure which shall in
volye the honor and integrity of the dead or of
| the living, they Will resist with all the power
which right gives, and if they perish in the
fight the glory and honor of their achievements
VIII be theirs and their children for all time to
come, while the shame and humiliation will be
that of the Government which they so faithfully
| served.
AN EXPLANATION.
And here, so that / may not be misunderstood,
| when l speak of the Government of the United
States l do not speak of it in its broad sense, |
do not mean the people of the United States
| but want to be understood when l use,that
term as referring only to those who administer
the Government.
l have faith and confidence in the people of
this country. l know that while hasty and I'M
pulsive they may be wrong but in the end their
Judgment is Us nnerring as the judgment of God.
| We Will stand for the right; We viii not swervc
| from the line. Whatever may be the conse-
quences to ourselves from the Judgment of the
Government of the United States If it should be
against US, we will appeal to the people, and in
the appellate Court SO constituted We win retry
the issues.
am here TO assert several propositions, many
OF which viii be startling TO you, for l cannot
close my eyes to the fact that, whether you may
be conscious of it or not it is not in the nature,
OF things that the Islander of twenty wears
| should not have made some impression upon
your minds.
THE PURPOSE IN HAND.
am here 20 assert, and to prove by the record
which the PacinS>Railway Commissioners have
| placed before you ):
First-That if this Government shall ever de
ScenQ rom It's nigh position and place itself
| this matter in the attitude of private creditor
| forgetting all obligations and regardless of all
equities, claiming the full amount of the bonds
| advanced this company with $50 per cent. usury
II stands in no danger of losing single cent of
the property or interest unless by its own acts
| Second-That the Directors of the Central Pa
| cific Railroad Company have faithfully per
| formed at the time and place mentioned in the
I law every obligation they ever undertook to
| perform towards the United States, and that on
| the other hand the Government OF the United
| States npla ohI
which it undertook, but has from the year 1864
! down to the present time, with reckless disre-
gard OF the rights of this company. which would
| have disgraced private contractor, failed and
| refused 10 perform in the manner in which it
| covenanted to do, any of its obligations.
Third-That the directors of the company
| have never done one single act which they
would not repeat under the same circumstances.
| That they can account, ana are now ready and
willing to account, and challenge the United
| States to meet them before any judicial tribunal
now organized, or which may hereafter be or
gained, for all of their actions, not only under
| the laws which govern the relations between
| trustee and trustor. but they willing to waive
| every statute of limitation and take that ac-
| count under the stricter law which governs the
relations between guardian and ward. They
are willing to meet the Government of the
| United States and to answer not only that they
| have administered the estate fairly and to the
interest of the ward, but they have gone further
and have protected their property to the extent
OF their power against the improvidence of the
| Government.
NO DANGER OF Loss.
And before entering at length upon the proofs
which will support and establish these propo-
| sitions beyond all cavil desire in the begin.
ming to show that far rs the Central Pacific
| road is concerned the Government cannot lose
| dollar OF the full amount claimed, except il
| loses ii by reason of its own folly And this
result so creditable TO the Directors has not
| been attained by reason of the strength of the
| AID TO the line, or by reason of any act of the
| Government of the United States but by the use
of foresight and judgment and in many in
! stances against the action of the Government
want to show how idle all these charges are.
| Colonel Morgan, the engineer selected by the
Pacific Railway Commission, one of the most
skllltuli engineers in the United States, one of
| the best railroad constructors i'll the United
| States, is a man whose life has been spent in
such work, man whose character is above re-
| proach and whose word upon these subjects is
law unto itself, reports to the Commission that
| the property of the Central Pacific Railroad
! Company, including its aided and non-aided
lines, including its terminals and workshops. is
| to-day of the actual cash value of one hundred
| and ten million dollars s110090,000).
ASSETS AND LIABILITIES.
If no legislation whatever is had the debtor
| and creditor account of the Central Pacific
| Railroad Company will, in November, 1888,
when these bonds become due, stand as fol-
| lows
Debt to private creditors, exclusive of the
| debt secured by the land mortgaged (which
| takes care of ITSELF, S55, 81, 900.
Principal of Government claim, 81, COO
Thirty years interest upon the Government
claim $50 per cent?, S50, 140, 224.
Making sum total OF Indebtedness at that
| date OF Sl35 Sl2.904
Cash assets available at that date. private sink
| ing fund of the company, S22,0OO0O0.
credit to the company in the Treasury of
the United States on the bond and interest ac-
| count up to November !. 1883. Sc, 203 $40.
Sinking fund held by the United States up to
November l, 1883, s., AIS 1896.
Estimated payment from 1888 to 1895 under
the Thurman Act on the basis of the payments |
for the years 1SS3-lSS6, 81, 10000.
Making the total, without computing any in
| terest whatever upon the money paid into the
Treasury of the United States, and after com
| putting full interest upon all claims by the
United States, and cash asets available on the
LIST day OF November. 1898, Sc, i02.375, leaving
but little over sos 600 900 due to be paid out of
property now valued at S110, 900 Co., on the LIST
day of November, 1895.
IF CERTAIN THINGS ARE DONE.
If we should pay TO the Government of the
United States the SD 00l 600 in our sinking fund
the Government then would have on hand |
without counting any interest in the meantime |
nearly sSI 100000, which, after paying the debt
on the first mortgage, would leave but $4,000 |
200 OF indebtedness, exclusive of that OF the |
United States. The Indebtedness to the United |
States would be little over ST. 0OoO OO the prin
pal portion OF which would be interest.
Now mark how simple the process and how |
easily the Central Pacific Railroad Company if |
the Government is disposed to act with it, could |
handle this Indebtedness. Call the indebted |
ness in a round sum 500 600 600 for convenience
The Government could issue its bonds for that |
amount. which would be readily taken if they |
bore an interest Of per cent. per annum. That |
would make charge upon the Treasury of the |
United States OF S2,0000O0 per annum. The |
company could without any difficulty and |
without assuming burden nearly as great as is !
now upon 1t TO- interest. pay into the United |
states Treasury 100000 annually, which |
would pay of the last dollar of this Indebted |
ness long before the expiration of forty years
This Indebtedness could be made to constitute |
lpso Jdct0 mortgage upon the property, and 1t |
would be first mortgage readily available TO |
the government or to any person who desired |
to use the security. l
There is no mystery concerning these affairs |
| nor any long drawn out bills necessary to ac-
complish honest or just purposes There is not
member of this Commission who could not |
| within an hour frame bill and against this
| plan there is not a business man who could
raise a single objection, and it is the plain
| straightforward course which would be taken
| by any business man under the circumstances.
| THE coMPANY's CLAIMS
Again, in this mass of Indebtedness the Cen
\ tral Pacific Railroad Company has large claims
! against the Government. There are millions of
| dollars in the Treasury of the United States
which honestly belong to il under the judgm enty
| oftne highest Courts in the land and TOR which
| the United States has made no provision for
| payment /; also has claims against The GOV
eminent for injuries caused by breach of the
| Governments contract with it. A simple clause
| inserted III the bill allowing the company TO
| sue the United States upon these claims aud
/ ~.