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

the Acts of 1862 and 1864 as relates to the time
and manner OF the payment of the advances in
the form of United States bonds issued to aid
the construction of the Pacific railroad, which
would definitely and certainly put the whole
amount in process OF liquidation. and at the
same time put an end to the exhausting and
| Improbable controversy thereupon.
THAT suggestion looked to the creation of
sinking fund, with fixed sums to be paid semi
annually into the Treasury as most business
expedient for diseharging debt of this char
acter aud magnitude, instead of the present
plan OF applying variable sums dependent
upon the amounts we get for Government trans
portaton, together with portion of the net
revenues of the companies. both of which must
prove not only inadequate to the purpose, but
also fruitful source of contention.
THE WAY NOT CLEAR.
The Secretary of the Treasury and very
many senators and Representatives have ex-
pressed themselves in favor of the institution of
such iund, but some difference of opinion has
arisen as to the power of Congress to impose its
settlement with regard to the COZ sent of the
companies OF the consequence to their ditors,
and also as TO the amounts necessary for the
sinking fund. The companies are in dufv honnd
TO resist any attempt TO impair their vested
rights or TO take their property " hout due mo
cess Of law, but at the same time they rerognize
that further litigation in regard to their cfsims
is as needless as it is wasteful inaSmuch as both
parties have the same end in view to wit: a final
full and conclusive settlement. To this end the
companies have incorporated into their original
sinking fund proposition which received the re
vision, and with some notifications the appro-
val, of the Senate Railroad Committee Of the
last Congress. the several suggestions of Senators
and Representatives looking toward AMIGA
bic arrangement which are here submitted ts
your committee In the form of q bill
AMENDMENTS ADOPTED.
- 1t viii be seen that the principal point of
differing opinions is the annual amount OF con
! tributiou to The sinking fund The compauies
| nave adopted the amendments suggested by GER
tain Senators, which were well received curing
| the deliberations thereon and which leave the
amounts necessary and sufficient to execute the
| purpose of the sinking fund to be computed by
the Secretary of the Treasury, thus referring the
| arlthmetical computations to the skilled ac-
| countants OF the Treasury, where 1t would seem
! TO belong.
" In the bill proposed by us the term of dura-
! ton OF the fund is placed at five wears beyond
| the date when the last-issued bonds Ghe bulk of
| the whole fall due, to which no strenuous OBJ
! lection is anywhere raised This extension of
| time is no more than a fair allowance for the
| delay IN instituting the fund, through no fault
| OF the company's, and for the unmerited with
| holding OF large sums due them for several
years on transportation account, and il is also
| Just and reasonable because of the further fact
that the roads were opened seven years earlier
than the contract with the Government called
| ior, AT a greatly increased cost.
SHOULD BEAR INTEREST.
at is only common Justice that the sfnoine
| innd should bear interest, and accumulate at
the rate these charges are running against the
companies, as the Government has the option
! OF calling IN its per cent. debt and of using
| those payments to the fund for the purpose In
! other words, IN consideration of extension
OF about fYe years in the maturity of the debt
/ the company voluntarily undertake to pay the
| greater part of 1t within twenty years before
any part OF 1t IS due, and TO devote TO this pur-
| pose not merely the revenues of the non-afded
| roads in order to bring the semi-anuual paw
ments within the probable ability of the com
panies to comply with the bill, If it shall be-
| come a law, without depriving them of the
| power to meet their interest engagements and
the sinking funds for their own bonded debts.
DECIDING BACK CERTAIN LANDS.
"At the same time TO maintain their roads in
use up to the most efficient standard it is
deemed necessary to retain the provisions for
the conveyance back to the Government of the
| alternate sections of land lying along the line
OF the roads between the one hundred and
fourth meridian and the eastern boundary OF
California. There is another desirable end 10
be reached by so doing.
"These lands the grazing and meat lands of
the coEtnent, are interspersed with an equal
amount of retained Government lands. the
whole belt of which l 200 miles long and 40
miles wide, was almost valueless when we re-
celVed them, although we are accustomed to hear
them spoken of rs munifcent country. They
nave Eow positive value, conferred upon them
Dy the presence OF our roads, and are suscept-
ib'e of sustaining immense herds of cattle with
occasional tracts adapted to cultivation by irri-
CATION, II they could only be divided and held
IN large solid tracts having due access to the
available water So far as they could do so
IN tiney nave served their purpose in promoting
the construction of the highway which was TO
mt them for settlement, but so long as the min
gIed proprietorship remains or the system of
ItNlauB survey ana subdivision is a0hqrpd
10, they cannot be made available for settlement
or industry by either the Government or the
companies. BY merging the whole in one com
mon ownership, ana adopting q suitable system
OF surveys having regard to the springs and
WatercOurSeS all of which may be done with
economy to the treasury and benefit to the
settlers, the Government may easily indemnity
Itself from the sale of what are now designated
as odd and eyen-numbered sections tor the
amounts proposed by this bull to be credited
upon the bond claim long before the claims
themselves fall due.
Half the present minimum rate per acre il
none too much to allow the companies for the
lands considering the length Of time and the
debt of the security held for its payment And
then this plan will permit the whole of the
lands 10 De thrown open to pre-emption and
sale at the minimum rate Of 81 20 per acre.
GOOD EXAMPLE.
g There are, besides, some pertinent reasons
why the railroad companies are entitled to be
met by the Representatives of the United States
with magnanlmlty and liberality, rather than
with exacting harshness. Among them are the
following the Pacific railroads furnishing n
cor splcuous example of fair dealing of private
parties with the Government.
" The companies are in no way in defaut
Ihey nave given valid invaluable consideration
Tor all they received; not only was not this great
work everywhere regarded as a colossal expert
ment and adventure) created in accordance
with the terms agreed upon, but the Govern
ment and the people had the use of it seven
years IN advance of the stipulated time
The benefits accrHiBg to the Treasury, aside
rom the consideration OF public welfare, from
the more rapid construction of the railroad over
the more leisurely policy, when TO our com
panies that would have been asaving OF not less
than $3.50 GOO, a sum greater than was real
lied on the whole of the Government bonds
advanced to them, there would have been a
corresponding saving to the companies from the
decllne IN the prices of materials, labor etc
II they had consumed seven years more i'm CON
structlon, which sum is now represented in
thelr Indebtedness The nation gained i'm
mensely by their prOdigiOus efforts and expend-
ltures The companies lost by them
eeeond-ih ne Governments daily and hourly
reapng Dement'S for It's use of the roads far out
weighing the interest ON its loan of credit
Prior to 1864 the cost of military postal trans
poItation west of the Missouri river exceeded
SSOJO,OOO per annum for scanty and liucer-
tain service. Now multiplied service of vastly
more efficiency and safer is performed for less
tnah S2ooOO0. The difference between these
sums IS very much greater than the annual
interest outlay of the Government and is yirtu-
ally gain TO the Treasury.
"Ihird-When the United States found it
necessary, in order to encourage the opening of
a great iron road across the public domain so
as to connect the two oceans and to open its
stores of the precious metals to offer its assist
ance in lands and bonds an inducemeut TO
such of its citizens as might be found willing
to embark their time, services and capital in its
construction, there was no other thought than
that the advance were to be repaid, if at all,
chiefly from the use of the road with possibly
an addition from participation to the extent Of
one twentieth of the net profits in the improb-
able event of its success
THE FORM OF THE AID.
out of spirit of abundant caution. and tn
avoid setting dangerous precedent, this aid
(Which, 1t was supposed would turn out TO be n
Donation was made in the form of a debt or
bond, TO be repaid currently in services and
residue to become payable at the end OF thirty
years.
Few, if any, then expected any payment in
money. The companies do not seek to construe
the advances as gifts, but il they are 70 nav
them in full as debts, they should be relieved Of
the charge of receiving the bounty of the Ma
ton.
1T is due to them, among the equities TO he
in any mode of settlement that
proper notice be taken ofthe fact that the bonds
they agreed to receive in 1862, though flied by
the same Names were in reality very different
things having one-third less exchange Ible
value when the work was done.
These bonds, so promised, so earned and so
shrunken in value, 1t is now proposed on both
sides to treat as a debt to be paid according TO
the terms of agree ent, without defalcation or
discount. in money worth one-third more than
was received for them, and to pay to the Treas
ury substantially in gold all the back interest
that 1t has paid out for years in deprecated
paper currency. When this is done, as by tho
provisions OF this bill, the Government will
have received back every dollar it has paid
out. PN
There are other grievances connected with
the characterization a lie