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

! tional Government. That was not our attitude
IN any aspect. With our own means, and sup
plemented by fndomitable will and courage we
undertook to construct this road. We would
nave constructed it had the Government of the
United states never made single contribution
| toward the work. We would have been far
better off now if that contribution had not been
made have grown sick and tired of hearing
or the generosity of the Government in this
matter matte The generosity was upon our side.
The Government wanted the road; wanted it
lor military purposes; wanted its use for all
time to come. We built it for them and in re-
turn they gave, not money, but their deprecated
currency. They did not even give their bonds
at the time at which they promised to give
them. They caused u.s. by reason of this delay,
10 add 10 our large expenditures Upon the in
terest account, for at the time we were con-
! structing the road the rate of interest in the
State OF California was from to 3 per cent. a
month month and we often had to pay that rate upon
/ large sums OF money by reason the delay OF the
government refusing and neglecting to comply
with It's contract with us.
THE LAND GRANT.
1t is true that they promised to give us ten al
| ternate sections OF land upon each side ofthe
railroad. They have never complied with that
promise They promised 10 give us lands over
which they had no more domination than had
/ the devil over the land which he promised to
Chrlst upon the mountain if Christ would fall
Town ana worship him. In order to get those
lands we bad to rescue them from the Indian
tribes then in their occupation
THE ACTUAL SITUATION.
We were not beggars nor suppliants at the
hands OF the United States. We were then
strong and the United States weak They were
| the supplants at our hands. The United States
loaned The bonds and they exact payment with
usury
/ l have yet to learn that a man who borrows
money from another, gives him ample security,
all the security that he asks and pays him a
rate OF interest in excess of what he could Dor
row money for. is under obligations
/ When We shall have paid back in gold the
| money WI ieh we borrowed in legal tender
/ what viii we have from the Government? We
VIII have its untitled promise TO convey to ms
/ these alternate sections of land This company
| mas not received pay up TO the present day
/ from the sale of lands granted by this Act 10
exceed S5,OOOOOO. Charged upon the books of
/ TINS company as expenses for surveys and ex-
penses IN the endeavor TO obtain these lands is
| over 81 10000 in gold while the trouble and
annoyance, il-feeling and ill-will which has
resulted from our having claim to them
would, II computed, more than exceed the bal
ance.
REMARKS IN CONGRESS.
As have said, am not proceeding and can
not proceed, IN logical sequence, so let me turn
/ Tor a moment to what was said by the great
! statesmen who passed this Act: let us see what
| interpretation they place upon it; let us see
what they thought were the obligations they
were imposing upon this company; let us see
| upon which side II was considered the favor
| then was.
! 1867 was under discussion in the senate. Mr..
| Wilson of Massachusetts said
" nave little confidence in the estimate made
| by the Senators and members of the House of
Representatives as TO the great profits which
| ire to be made aud the immense business to be
| done by this road. give no grudging vote in
giving away either money or land / would
| sink sl00,OO0000 TO build the road, and do il
most cheeriully, and think / had done a great
| thing for my country if | could bring it about
| What are SIS 600 900 or 500 600 600 to open a
railroad across the central regions of this CONT
nent which viii connect the people of the Pa
cific and the Atlantic and bind them together
On the same day he used the following Ian
guage:
LAS to the security the United States has
taken on this road, would not give the paper
1t Is written upon for the whole of il. / do not
suppose II Is ever to come back in any form eX-
cept in doing on the road the business we need
and carrying our mails and munitions of war
In my Judgment we ought not to vote Tor the
bill with the expectation, or with the under
standing. that the money which we advance
for this road is ever to come back in the Treas
ury of the United States. | vote for the bill
with the expectation that all we get out of the
road land think that is great deaD will be
mail-carrying and the carrying of munitions of
war and such things as the Government needs
and vote for it cheerfully, and with that view
do not expect any of our money back / be-
lieve no man can examine the subject and be-
lieve it will come back in any other way than
as provided for by this bill, and that provision
Is for the carrying OF the mails and doing GER
tain other work for the Government"
THE CALIFORNIA SENATOR'S
Mr.. Latham of California said: The loan of
the public credit, at six per cent for thirty
years, sixty-tive millions, with absolute security
by lien, with stlpulations by sinking fund from
profits for the liquidation of the principal Off
cial reports and other authoritative data, show
that the average annual cost even in times of
peace in the transportation of troops with mu-
nitions of war. subsistence and qlarter-master
supplies may be set down at 81, 800, 600 The in-
terest on the credit loan of siXty-five millions
will be annually s., 900 900, leaving a net excess
of S, 400 600 over the present cost thus appeal
ing with great force to the economy of the meas
ure, and showing beyond cavil or controversy
that the Government will not have q dime To
pay on account of its credit. nor risk dollar by
authorizing the construction of this work.
Senator McDougal of California, one of the
ablest lawyers of his day, said: Il have had
occasion before 10 remark that this Government |
is now paying over seven millions per annum |
for the services which this road is bound to per-
form. That is about 100 per cent more than the |
maximum interest upon the entire amount of |
bonds that Will be issued by the United States
when the road is completed. This Government
Is to-day on peace establishment, without any |
war necessity, paying for the same service 100 |
per cent. more than the entire interest on the |
amount of bonds called for by the bill Besides
that, 1t is provided that five per cent of the net
proceeds shall be paid over to the Federal Gov |
eminent every year Now, let me say if this |
road is to be built, it is to be built not merely
with the money advanced by the Government
but by money out of the pockets of private in |
dividuals. II is proposed that the Gov-iI
eminent shall advance 100000 900, or rather |
their bonds at thirty years, as the road |
IL NOhplEISNls III the course OF Il SerleS OF /
years so that the interest at no time |
can be equal TO the service to be rendered by |
the road as 1t progresses, and that the Govern
ment really requires no service except COM
pllance on the part OF the company with the |
contract made. 1t was not intended that there
should be a judgment of foreclosure and a sale |
OF this road on failure to pay. We wish IL to
be distinctly understood that the bill is not |
framed with the intention to have foreclosure
In case they failed to perform their contract
that is another thing. That is stipulation
IN a IN - 1a,.rv
ferent thing from foreclosure for the non-pay-
ment of bonds
The calculation can be simply made that at
the present amount of transportation over the
road-supposing the Government did no more
business-that alone would pay the interest
and the principal of the bonds in less than
twenty years making it direct piece OF econ
omy If the Government had TO pay for them
all.
a REASONABLE CONCLUSION.
However, am not disposed to discuss this
matter. l say it was not understood that the
Government was to come i'll as a creditor and
seize the road on the non-payment of interest
1t is the business of the Government to pay the |
interest, because we furnish the transPorta-
ton"
This is what the statesmen who framed the
bill thought they were doing. They never con-
templated that the Government was loaning
money and obtaining security for its return. |
They never dreamed that the hour would come
when the Government of the United States
would assume toward these companies the at
n I
of its benefits Tor which they bargained, and
yet require them to return, with usurious in
terest all the United States had given to the
railroads.
THE PURPOSE OF The STATUTE.
now propose to show, both upon the Ian
guage of the Act and upon rational interpre-
tatlon of 1t, that this company never undertook |
or promised to repay to the Government of the |
United States the bonds which the Government |
advanced. will take up first the Act of 1862 |
need not refer TO the other Act, because for the
purposes OF this argument the construction of
both will be the same.
The Act of 1862 is entitled Gan Act to aid in
the construction of a railroad and telegraph line
from the missouri river to the Pacific Ocean |
and to secure to the Government the use of the
same for postal military and other purposes
Turning to Section is of the Act in the body
of the Act, we find ii to be the declared purpose
of the Act to promote the public interest and
welfare by the construction of such railroad and
telegraph line and keeping the same in working
order, and to secure to the Government at all
times, but particularly in times of war the use
and benefits of the same for postal, military and
other purposes.
Here we have the declared purposes of this
Act, but by new and strange inventions the
United States stands before this committee and
claims that the purpose of the Act was % loan |
The money of the United States at interest and |
secure its repayment. Such construction |
would absolutely defeat The purposes of the |
Act, as will hereafter be seen.
WHAT THE ACT SAYS
The first section of the Act provides for the