The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-03-18

'hehi, put tne ianu department was not
ready to pay for them, and the land de-
partment would not survey. Any burden
now put on this road must fall upon the
people OF Nevada and Utah, who are al.
ready paying fair charges for the service.
The senator told graphically the familiar
story oil the construction and completion OF
the line. He said the government had
loaned It's credit to the extent OF S27, 900, 600
and the company had issued bonds to n
like amount. The government bonds
had been sold at q discount, bringing in
but little over SIC, 900, 900, and the COM
pany's bonds had brought little less than
this sum. All the money so realized had
been expended in the construction OF the
road. IL would be seen that the wild
stories that 800, 000,000 had been made
out OF the government in this transaction
were without foundation. More could not
be made out OF thing than there was in
IT, and all the government had put in was
S27, 10000 The road was completed
seven wears before the limit was reached,
and before that limit was reached the gov
eminent had saved more in the reduced
charges for the transportation Of its mails
and troops than its entire investment.
The road was a conspicuous success
and 1t could easily have paid off its
Indebtedness to the government had
the latter, not by its own acts, fostercd
competing lines, which divided the bust
ness and the charges. He believed no
other transcontinental lines would ever
have been constructed had the Central
Pacific not shown the practicabilty. lie
did not suppose that any one expected the
government bonds TO be paid at maturity.
The first mortgage bonds were due at the
same time those Of the government were.
due. The company's sinking fund TO meet
the first mortgage bonds now amounted to
s9,OOO,OOO. Every dollar Of this made the
government security so much better The
amount standing to the credit OF the road
now in the treasury was actually S600,0O0
less than the amount paid in, by reason of
ITS investment in government bonds at
high premiums. The government, in all
its dealings, sold its bonds for what Il could
get, losing itself whatever might be the
discount, yet the Central Pacific had sold
the government bonds Mt a discount, and
was now asked TO pay the face value.
But II might be said the road issued a
large amount OF stock. 10 II did. but this
did not affect anybody but the sharchold-
crs. IL had built branch roads, but not q
dollar OF the cost had come from the GOV.
eminent. II this government debt was
paid the government would have saved
over 500, 100000. The profits OF the road
were derived, not from the government,
but solely from the values the road had
created.
General Counsel Raymond, OF the Cen
trai Pacific, followed Senator Stanford lie
fl...n ID. a.. A Il
state what Il was willing to do rs long as
the responsible men were resting under
charges affecting their character. They
simply appeared 10 the demand Of the
committee an investigation OF those
charges. Later when, rs he had no doubt
would be the case, the committee should
acquit the manager Of all wrongful acts,
the road would state what Il could do. lie
said that in no single instance had the
road failed in its obligations TO the govern
ment or the people, lie further declared
that since 1852 in no single instance, not
one, from the beginning 10 the end, has
the government performed faithfully one
single obligation that IL entered into with
the road. He declared that the Thurman
act was failure, as everybody who knew
anythingabout railroads knew IL would do.
Thurman net the company's indebtedness
would he paid OH.
Never rejoined Mr.. Raymond "and
Why" he asked, SHOULD Il be paid of. II
the companies owed 100000, 900 10 the
was 10 wipe II all out. Not 81 ought 10
be collected. II was question Of lcvying
a tax upon the local community 10 pay oh.
ssl. tl.. IL
tered into 20 save the Union. Take your
Thurman act," he said, "and let Us give
you many thousand dollars year, and let
ia perform the services which we are ne.
quired 10 perform"
Mr. IIiscock said he did not see the
force OF the argument Any inventor,
whose invention had been disposed OF 10
the government, might rs well make an
equitable claim against the government for
incidental benefits which accrued 10 the
citizens from its adoption.
Mr. Raymond maintained that the road
had been constructed 10 keep the Pacific
coast in the Union. Had those States
persisted. Now the debt must be paid by
the people nj non-compctitiye points, aud
there are but few OF these left. IL this
tax was put npon the road, Il must be
paid by the people OF a small portion OF
the country and there would, he assured
the committee, be trouble. Twenty-four
months would not elapse before these peo-
pie would be here, and they would be
heard.
The committee adjourned TO week
next Monday, when Mr. Raymond will
conclude his argument.
HOMESTEAD DECISION.