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

Wudi pIoCtss OI reasoning any one cOulQ nave
come to the conclusion that the Directors built
those roads, paid for them and saved out of the
sN,OO0,OOO IN deprecated bonds which they re-
ce1ved from the United States the sum of $780,,
OVOOOo, am unable to conceive. propose right
here. by the evidence that cannot be gainsaid
TO establish the fact that it cost to build the Cen
tral Pacific and the Western railroads all the
money which the Directors received from the
Government, and that from their own first mort
gage bonds, for which they are liable. so that
hereafter, when anyone shall assert that either
one OF the Directors. at any time or place, ap-
propriated one dollar of that money to his or
their own use, it may be known that the man
who makes tl.at assertion is in one of two con-
ditions: either Providence for some inscrutable
reason, has created being who can neither APP
preclate nor speak the truth. or that he is one
who lies for the mere lust of lying.
EVIDENCE BEFORE THE COMMISSION.
To establish this I will take the figures made
by this Commission, which are-I say it with
J all due respect-unfriendly figures figures
which will hereafter, during the course OF this
argument, show 10 be wrong by millions on
both sides; figures which viii show do not rep
resent the actual cost. nor could they represent
the actual cost of the road within many millions
OF dollars. But they are sufficient for the i'm
portant purposes here announced.
the bonds which the United states loaned
for they never loaned any money-to the Cen
trail Pacific and Western Pacific Railroad Com
panie5 were upon their faces payable in legal
tender notes. The cost of construction was paid
| for in gold, which was the only currency in use
upon lue Idclnc coast. 80 tlat the company
not only had TO convert the Government bonds
into gold, but they were compelled by the same
circumstance to convert their own bonds into
gold and stand the loss.
The bonds issued by the Government of the
/ United States to the central Pacific Railroad
! Company were the only bonds ever issued from
1850 down to the time OF the resumption OF
specie payments, ON which the Government it.
self old not stand the loss of the difference be-
tween gold and legal tender notes.
TERMS OF THE BONDS.
The bonds issued to US were payable IN legal
tenders, and were issued to us at their full face
value. Any one who desires. needs but to look
at the newspapers of the dates at which these
bonds were issued to learn what their value
was. But you need not go TO that trouble, for
( the proof is in the record before you.
Now, let US state the account. and state it on
the uniriendly figures of this Commission.
They say That tie actual cost of the road from
Sacramento to Ogden-737 miles-was S36, O3O :
900; that the actual cost of construction of the
Western Pacific Railroad from sacramento to
San Jose-li9 miles-Was s.. 600 O0O
These estimates do not allow ANYTHING what
ever for profits TO contractors nor do they cover
the whole cost of the snowsheds built in the
year 1863, nor the cost of the rebuilding of the
American river bridge. These estimates of cost
OF construction amount to S4l 100000 Add to
that S53,OOO for the rebuilding OF the American
river bridge, and 81 200 900 for the cost of snow
sheds, being in excess of the amount included
IN the estimate, and they make in the aggregate
81, 600 as the actual cost of constructing the
ipt0 nun San Jose 10 near OSuen.
UNDER DIFFERENT CONDITIONS.
These figures were not made in the storms of
the Sierra Neyadas or on the desert wastes of
Nevada and Utah. They were made by two
lawyers of this Commission, sitting IL comfort
able rooms, richly carpeted and richly fur
nlsned, surrounded by engineers and Stenog-
raphers. They were made twenty years after
the fact and by men who were appalled, at the
present storm which has just swept along the
Atlantic coast storm which as compared 10
the storms the SiarraS n wi ba
OF the road lived and had their being for three
years. was as the gentle zephyr which cools the
cheek OF the lovesck maiden.
1t is in proof here, and cannot be contro-
yerted that the Directors of the Central Pacific
and the Western Pacific Railroad Companies
received from the sale of Government bonds
alone, and from the sale of its own bonds
which constitute the foundation of the first
mortgage, the sum of S41, 4S0, 900. All that the
Directors have received from the sale of the
company's bonds and of the Government bonds
was 81, 100000, according to the very figures
which this Commission makes Unreliable
though they be, and against us, they put in gold
INTO the construction of that road $40 25S 600.
Here let this matter for the present rest in that
these men, or any of them, ever diverted sin
gle dollar of these moneys from the purposes
TOR which they were intended. Later on will
look into this testimony.
TAKING THEM TO THE START
will place you at Sacramento on the 4th day
OF March, 1868. Twill show you the work which
was done for the first three miles on the south
ern bank of the American river n torrential
stream, and will show you how costly and ex-
penslve was that work. l will take YOU across
the arid valley of the Sacramento and to the
summit OF the Sierras. above the clouds; will
as near as possible, convey to YOU an idea of
what the storms are which sweep over those
mighty mountains every winter; will show the
obstacles which had to be encountered and
which were met and overcome before the days
OF the Burleigh drill and of high explosives
will take you from the eastern foot of that range
OF mountains the desert Of
which, from Reno to Corrlne, for 500 miles bur
one single white man lived and which pro-
duced no tree in all that distance out of which
board could be made nor stone, nor any OF the
materials of which the superstructure of rail
ro.ds is reared; over that desert waste where
We hauled water for miles TO the line of the
road, and where none could be obtained in any
other way.
When we have made this trip, when We have
travelled over this line and brought ourselves
back to 1868, '6i, '65, Go 67 '6S go Won will he
satisfied, beyond shadow of O doubt, that S42-
OOO000 never constructed that line of railroad
GRAVITY OF THE ISSUES INVOLVED
have already said that 1 have listened to
the proceedings before this Commission with
care and attention since its first organizations
that | have heard all of the arguments and
statements made here. Up to the time that
Governor Stanford addressed you this morning
no one had ever presented the question of right
or wrong.
1t is with that question propose to deal as
briefly as possible, but If your patient kindness
permits, most thoroughly, for it involves not
only large sum OF money, but it involves what
Is more sacred still, the character and reputa-
ton OF the living and of the dead.
In time the transactions under Investigation
have covered nearly a third of century. TWEEN
ty-eight of the most eventful years of the his
tory OF the world and in which more import
ant things have occurred bearing upon the hap
plness and destiny of mankind than in any one
century preceding. Most truly has New Eng
lands gifted poet said, that "life greateus in
c oil OF
to-day"
So far as this country is concerned that period
of twenty-eight years has been the most event
fui. and the event not of the least consideration
which has left its impress upon the destinies of
this country was the construction OF the first
transeontinental line of railway which was to
bind i'll bonds of steel the old East to the Vouno
and growing West.
THE STRUGGLE FOR THE ORIENT TRADE
From the earliest history civilized nations
have struggled to draw to themselves the trade
which springs from the human hives of the
Orient and the Indies In the contest for this
trade II is not an overstatement to saw that
millions of lives have been lost and other mill
ions of dollars been spent.
AT quite an early day in our history men who
were then thought to be visionary dared TO look
forward and to anticipate the day when, by
means OF transcontinental road, that great
trade should be diverted from its old channels
and carried across this country; that we should
out here, like the PALMYRA of old levy 81 inst
tribute upon the commerce of the world
These dreams, visionary as they then seemed
to be. have in part been realized, and to-day,
between the frozen North and the sunny South
seven lines of transcOntinental road have come
into existence. Lines of steamers. which are
the result OF private enterprise, ply upon the
Pacific and bear to our Western shores for trans
portation to the East and Europe, the teas silks
and spices of the Orient and the Indies.
THE sUEZ CANAL
That all of those dreams have not now turned
realities and all of the commerce of that great
East has not been given 10 u.s. rests not upon
things left undone by this people, but upon the
fact that great Frenchman with bold hand
has reopened the ancient canal, and shortened
by thousands of miles the water line from Asia
and from India. De Lesseps spent in that work
of the rewards which grateful country could
confer upon him. Nolegislative committee has
investigated him no strange Commissions
clothed with inquisitorial powers and functions
unknown to the traditions of the English-speak-
ing people have been called to render Judgment
upon him. No keen lawyer, the advocate of the
French Government, has sat in his elegant Office
IN Paris and argued out how many tons of earth
De Lesseps removed from the desert nor how
many drops of sweat he poured out under
tropical sun in that achievement.
THE VALUE OF A THROUGH LINE.
The Importance of q railroad across the CONT
nent early impressed itself upon the people of
the East. Many distinguished Southern States
men advocated the construction of such a road
on the line of the thirty fifth parallel: and had
their views been carried out, and had that been
built before 1850. the South would have been
united by rail with the Pacific coast; its popula-
ton would have been diverted in that direction
and il is not beyond the bounds OF possibility