The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-03-27
or the Central Pacific Railway to
tho Senate Special Committee.
He Answers the Vituperatlon CAST
Upon Builders of the Road.
Every Obligation to the Govern
ment Has Been Fulflled.
He Details the Obligations and Main
tains That the Central Pacific
Company Has. Been Dero-
lict In Nothing.

WAsurSoToN, March Ex-senator Stan.
ford today submitted an address TO the
Senate special committee having charge
Of the reports Of the Pacific railway COM
mission. He said he desired TO emphasize
single statement which would sufficiently
answer all the vituperations that had been
east upon the builders OF the road. lie
wished the committee to be entirely diycsted
ofthe prejudice which the false stories about
the construction OF the Central Pacific left
in the minds Of all who heard them. The
statement which he wished the committee
TO understand thoroughly was that the
Central Pacific Railroad company had
fulfilled every obligation TO the govern
ment and the people imposed upon il by
the acts Of Congress creating il. In not
single instance has Il teen derelict. Up
to this hour IL has been mindful Of every
duty II owed both TO the public and to the
government. lie then detailed what the
obligations were that the acts Of Congress
imposed upon tho company The first
one was that the road should be built and
that II should be completed by
July 1, 1875 But by putting forth
extraordinary effort by hesitating at
no expense, by giving the highest wages
paid in the whole country by working on
tho mountains in the dead OF winter
through snow forty feet deep, by exhaust.
ing every resource 10 push the road across
the Nevada desert, the work was finished
in 1859, seven years before the time set by
Congress That is how the Central Pacific
fulfilled the first obligation imposed uron
Il by Congress. But the company doubled
the cost oi the road by this excrtion, the
full burden Of watch Il had 10 bear, while
the government saved by the reduced cost
Of transporting military stores and the
mails up 10 1870, when the act Of Congress
contemplated that the road should bc lln-
ished, more than the company received In
gold for the sale OF the bonds received
from the government.
The second obligation imposed by the
net Of Congress was that the Central Pa
cific should pay per cent Of tho net earn.
ings 10 the United States from the compile
ton OF the road and thereafter. Their oh
| liyation has bern performed fully and con
scienliously from the day the last spik,
was driven.
The third obligation imposed by Con.
grcss was that the government should
have the Use Of the road for postal, mill
tary and other purposes. This has been
granted in the fullest sense of the term.
The company performed generously and
Immediately every requirement OF the
government. Every officer appointed 10
inquire whether each letter Of the law had
been observed, has reported that the com.
pany IN In default In Il.
The fourth obligation imposed 10y Con.
grcss was contained In the Thurman act
And when the original contract WIS
changed by the passage Of the net which
the Central Pacific believed violated every
principle Of the laws Of contracts, II being
advised that the alteration Of the original
contract 10y the Legislative department was
beyond its Authority. and that the act was
invalid, submitted the matter 10 thecourts,
and when the courts sustained the validity
Il the act. the Central Pacific complied
with Il and is still complying with
IL, although 10 the great detriment Of
the corporation and the government
In reply 10 question asked by the
chairman IN 10 the effect Of the Thurman
act, Senator Stanford said. II disappointed
liz promolom Tho method oi inyosii.
eating the fund was failure. Even II the
business had not fallen OF Ivy reason oi
competing lines, this defect In the bill
would have rendered II worse than use
less.
That fund has not accumulated The
Secretary Of the Treasury has invested the
money in government bonds, paving an
average premium therefor Of 80 per cent.
There has been paid In by the Central Pa
cihc Railroad company, under the act,
81, ls6, 800 the lots on which mp 10 August
1, 1887, was tl ,0l2,000 In fact, all inter.
est on the fund has been lost, and for all
practical purposes there Is lcg money In
that sinking iund than the amount paid In
the company, over fJ00,OO0. This IL the
history Of the company Ia IL dealings with
the government. In performing every dc.
tail oi its obligation Il has been scrupu-
lously faithful.
Senator Stanford said he would not speak
Of the way the government had acted
toward the company, although II had
dealt vigorously with u, harassed u In mum.
bcrlcss ways and forced a new contract
upon Il against its will and 10 lis great Diet.
riment. lie next directed the attention ol
the committee 10 tho rumon that the
| bulldtN OF inc icntful Inclnc nhu nnut
yast sums Of money nj the expense Of tho
government anl the people. Every man
who examined The financial history oI
that great enterprise without prejudice
would treat these wild stories with disdain.
The government gave tho company In
bonds 81, ,s65, $50, which were sold ON an
average of ~ cents on the dollar, and
which brought the company only $40, 49,
iG5. The company also received Tor the
sale oi its own iirHt mortgage bonds about
the same amount, making the total that II
received from both classes Of bonds about
81, 10000 Every cont Of that amount
was spent In the construction OF the road
Senator Stanford said that all the values
that the company has had and whatever
oi wealth II has gathered has come from II,
own creation. Every dollar Of the govern
ment bonds and every dollar Of the tlrs
mortgage went into the construction Of Ia,
road. The building Of the road deyelopc,
the country and created great values. 1
was by creating values here no value ex
isied before that the builders Of the roa.
gathered their fortunes. bengtor Stanton,
said that the agreement between the Cen
trail Pacific Railroad company and the gov
ernment constitutcda contract. Each part,
10 the contrnct covenanted 10 perform Ger
tain things AL those things which th
government agrecd 10 give the compan,