, 1888-03-22
WASHINGTON NOTES.
THE CENTRAL PACirIC.

WAsuINGroS, March Ex-senator Stan.
ford to-day appeared before the senate
special committee to which was referred
the report of the Pacific railroad commits.
sion. He said that the government had
reaped from the Central Pacific all the ad.
vantages any one ever expected 1t would
reap, and now it had poor debtor to deal
with, it was IA question OF whether the gov
ernment would deal as generously as indi-
viduul creditors would under the circum-
stances. There was an impression that the
road had delayed having its land grant sur
veycd in order to evade taxes. As matter
of fact, there has been no time when the
road was not pleading for surveys and
when it was not ready to pay for them.
But the land department would not survey.
Any burden now put on this road must
fall upon the people OF Nevada and Utah,
who are already paying fair charges for SER
vices. The senator told graphically the
familiaIstory of the construction and COM
pletiorSf the line. He said that the gov.
ernment had claimed its credit to the cy-
tent OF S27, 900, 600 and the company had
issued bonds to like amount. The gov
ernment bond had been sold Mt discount,
the companies bonds had brought
little less than this sum. All
the money Us realized had been expended
in the construction of the Road 1t would
he seen that the wild stories that hundred
million had been made out of the govern
ment were without foundation.
The road was completed seven years be-
fore the limit in time was reached and be-
fore that limit was reached the govern nment
had saved more in reduced charges for the
transportations of its mails and troops
then the entire amount The road was u
conspicuous success and IL could easily
have paid Off its Indebtedness to the gov
ernlnent had the latter not by its own act
fostercd 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 same time
as those of the government. The com
pany's sin king fund to meet the first mort
gage bonds, now amounted to nine million.
Every dollar of this made the government
security 80 much better. The amount of
standing credit of the road now in the
treasury was actually $1,000 900 less than
the amount paid in by reason of its in
vestment in government bonds at
high premiums. The government in all
its other dealings had sold its bonds for
what 1t could get, losing itself whatever
might he the discount. Yet the Central
Pacific had sold government bonds ut q
value
1t might be said that tho road issued n
large amount of stock. So il did but this
did not affect anybody but the sharehold-
ers. lfthis government debt was paid the
government would have saved over $780,
derived not from the government but
sorely from values the road had created.
General Counsel Raymond OF the Gem
tral Pacific followed Senator Stamford.
He said that the Central Pacific could not
in honor state what ii was willing to do,
as long as the responsible men were resist
ing under charges affecting their charac
ters. They simply appeared now to de-
mnnd OF the committee an investigation of
these charges. Later, when the committee
II "a
acts the road would state what it could do.
He said that in no single instance had the
road failed IN its obligations To the govern
ment or people; declared that since 1867 in
no single instance from beginning to end,
has the government performed faithfully
one single obligation that it entered into
with the road. He declared that the
Thurman act was II failure rs everybody
knew it would he.
Senator Frye asked when, under the
Thurman act, the CUmpHnys Indebtedness
would be paid oil
Never" rejoincd Raymond, and why,
he asked, should IL be paid oil. II the
companies had q hundred million to use,
the thing to toe argued WAS to wipe it all
out. Not owe dollar ought to be collected
II was n questioned levying u tax upon the
local community to pay the obligations
which the United States had entered into To
save the union.
Take your Thurman act, he said "and
let uS give yOu 50 many thousand uoIiurs
year, and let us perform the services which
we are required to perform His conpa-
ny did not see the force of the argument !
An inventor whose intention had been
disposed of To the government might as
well make an equitable claim against the
government for the incidental benefits
which accrued to the citizens from its
adoption.
Ha. iuond maintained that the road had
been constructed To keep the Pacific coast
In the union, Had tlrose states gone ont
OF the union itwould surely have pershed,
Now the debt must he paid by
people ut non.coinpetitlve points
and there were but few of
these left. If this tax was put up on the
road 1t must be paid by the people of IA
small portion Of the country and there
would, he assured the comlnittee. be
trouble. Four months would not elafse
before these people would be there, and
they would be heard. . !
The committee adjourned to q week from
next Monday when Hayniund will cor
ciude his argument.
INTERESTING READISo.
The first of the authors readings I'm aid
of international copyright was given this
afternoon in the Congregational church in
the presence OF u distinguished gathering.
Mrs. Cleveland occupied pew, in com
pany with Mrs. Lamont and Mrs. Willard.
She has taken deep interest in the project
and expects To attend the reading on Mon
day evening, accompanied by the prcs-