Butte semi-weekly miner. [volume] (Butte, Mont.) 1886-1890, 1888-03-21
CENTRAL PACIFIC.

A specious Showing by Which the Govern
ment is Declared to Have Saved $780,
OOO, ,OOO-The Iniquity of Holding the
Road to It's Bargain.
WASHINGTON, March Ex-senator Stan
ford, who appearet to-day before the Senate
special committee to which was referred the
reports of the Pacific Railroad Commission,
told graphically the familiar story OF the
construction and completion of the line
He said the Government had loaned it's
credit to the extent OF SGT, 100000 aid
the company had issued bonds to like
amount. The Government bonds had been
sold at discount, bringing in but little
over $50, 100000 and the company's bonds
mad brought Il little less than this sum. All
the money realized had been expended in
the co; ruction Of the road. 1t would be
seel that the stories that hundreds of mill
ions had been made out of the Government
were without foundation. The road was
comI'ie'ed seven years before the limit in
time VAS reached. Before that time was
reached, the Government had saved more
in reduced charges for transportation in its
mail and troops than he entire invest
ment. The road was
CONSPICUOUS SUCCESS
ard it could easily have paid off its in
debt eduess to the Government had the lat
ter not by its own act fostered competing
lines which divided the business and charges
He did not suppose any one expected the
Government bonds to be paid at maturity.
The first mortgage bonds were due At the |
me time those of the Government were
dut. The cOmpany's sinking fund to meet |
the list mortgage bonds now amonrted t.
nine millions. Ey,ry dollar OF this made
the Government security SO much better. |
The amount standing to the credit of the |
road rOw in the Treasury was actually |
$500 900 less than the amount paid in by |
reason Of it's Investment in Government |
bonds of high premiums. The Govern
mem in all its other dealings had sold its |
bonds for what it could get, losing itself |
whatever might be the discount yet the
Central Pacific had sold Government bonds
at a discount and WAS now asked TO
PAY THE FACE VALUE.
1t might be said the road issued large
amount of stock. So it did, but this did |
not affect anybody but the shareholders.
II this Government debt was paid the Gov
ernmet,t would have saved over $2O0,O0O,-
600. The profits of the road were derived,
not from the Government, but solely from
values the road had created.
General Counsel Ray ymond, of the Central
Pacific, followed Senator Stanford. He
said the Central Pacific could not in honor
state " hat it was willing to do as long as
men were resting under charges
a affecting their character. They simply ap-
peared now to demand OF the committee
an investigation of these charges. Later,
when the committee should acquit the
OF all wrongful acts, the road
would state what it could do. He said
that in no single instance had the road
FAILED IN ITS OBLIGATIONS
to this Government or people; declared
that since 1892 in no single instance from
the beginning to the end has the Govern
nent performed faithfully one single obi
cation that it entered into with the road
He declared the Thurman act was Il failure
as every body knew it would be.
Senator Frye asked when under the
Thurman act the company's indebtedness
would be paid off.
"Never" rejoined Raymond. "And why.'
1e asked, ''shoud it be paid OFF, If the
owed hundred millions to the
JLlUtu OUdOc5, Uuc CuluS w Dc uOIie was "
wipe it all out. Not onedol]ar ought to be
collected. 1t was a question of levying Il
AK upon local community to pay obliga-
ions which the United states had enterei
nto to save the Union with.
TAKE YOUR THURMAN ACT"
le said, land let us give you so many |
thousand dollars year and let US perform
he services which we are required to per
orm.'
Mr.. Hiscock did not see the force OF the
lrgument. An inventor whose invention had +
)een dispose of to the Government mi ght |
Us will make an equitable claim against t he
government for incidental benefits which |
lccrued to citizens from its joption.
Raymond maintained that the road had
,evn constructed tr keep the Pacific Coast '
Il the Union. Had those states gone nrt
lie Union would surely have perished. Nov
he debt mus he paid by people at no,-
competitive points and there were bIt few !
ii tnrs,, left. If this tax was put upon the
oad it must be pad b. p, ople Of q small
portion Of the country and there would, :
70 assured the committee, be trouble. |
Twenty -four months ou! not elapse BE- l.
ore these people would be here and they :
would be heard.
The committee adjourned to week from !
lext MUniay, when Raymond y III conclude
lis argument.
4aavv Snow an Gar1nanv and nfsa atroua ,