New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-01-05
over the road from tho time wo have the full use of

the Judgment. and held that the United states was
technically correct. and could II II chose persist I'm IFS
incquablc demand the Central Pacific at obcyed
the law and paid to tho Government the amount which
II claimed rs per cont upon the net earnings nom
the time the last spike was driven
and when m, contract was changed by The
Of the socalled Thurman act which mo Ten
trail Pacific believed violated every principle Of the Jaw
Of contracts. n being advised and believing that tho
alteration Of tho original contract by the icgisiaiVe
department beyond It's authority. and that the act
was Invalid submitted the matter to the courts. ard
when against what might he said to have been the In
dgnnn protest OF Mr.. sn,,cc slroms ~, n n,,r" o
validity Of the act the Central Pacific compiled with
H. and Is stl complying with 1t. although TO tho great
dctrmcnt Of the corporation and the Government
whose ancipatons of benefit have not been rraliznd
because the change not based on sonnd principles
Who're is The evidence that the Central Pacific cor,
poraon has not Kept It's part ~ the contract or that
II hes in failed "a comply with any o. It's OBJ
ligatons to tho Government u has rondrrcd 70 the
Government all that was demanded In tho contract.
tho builhng OF the road and in about on'-half the
time that tho law allotted
Whenever the rights OF the United States have becn
ascrrtaincd. the Central Pacific has accorded those
rights and has chccrfuly and promptly yielded TO tho
demands Of the Treasury upon II.
II IL the mcrest pcrvcrsion OF language TO say that
this COMPANY has IN way failed in its obligations
toward thc Government
Rnt while there is no evidence to sustain such
charge agans. tho Central Pacific Railroad Company
or ITS officers find abundant evidence in the EX-
ecntive departments OF the Government to refute It,
NO IMPAIRMENT OF THE GOVERNMENT LIEN.
When the Act OF May z 1873. before the Senate.
contracts between the Government and ths Union ard
Central Pacific Railroad Companies were changed,
without he consent and against the protest of the
contracting parties, who, in reliance the good faith
Of tho Government. had built this National highway:
Mr.. Bogy. tho Senator from Missouri, who favored
this violation Of tho rights of he railroad companies,
was compelled to yield the following tribute. lie
said:
al look upon the building Of the railroad from the
waters of TIE Missouri to the Pacific Ocean, az the
as perhaps tho greatest achievement of the human
or tho earth. am old enough TO remember when the
the Pacific Ocean was lookc1 upon as Wild dream,
as thing nearly impossible of accomplishment. Yet
accomplished at a comparatively small cost to the
Government The lands donated to the road were not
lad an empire lying west between the waters Of the
Missouri and the Pacific Ocean-an empire which has
day-a country which has become Of crcat advantage,
ard which would have been utterly worthless without
confederacy the Pacific Coast bands of iron. and
no one can tell what might haye been the oes en- 6 o
railroad give to the men who originated ana
for doing great thing. at the critical moment In
very short space OF time"
Senator stanford the Pres dent Of the Central Pacific
Railroad Company. I'm the testimony given before the
Commission says. in substanc that during his admin
slraton President Of the Central paciiic Rar '5
there has never been any desire or intention; or any
which it has disregard the rights Of
the United States as a contracting parry with inc
sult has been obtained from act done by the COM
paDy which could in tho ordinary course Of business
have been prevented.
Mr.. Miller secretary Of the company. who has been
connected with its affairs from 1909, says
wears, Connection with he affairs Of the Central Pacific
has its business been so handled or Us properly
With s intent Sn hs pa Of res of hs
United States"
And Mr. Crocler and Mr. Huntington have testified
whom the Act Of 1862 was passed, IT was the ex-
Of 10Th ss agSs D e wo"d to tho
companies would bc sufficient: not only to discharge
n Ha or he " dRhase the pucpa
years. And when the amendment to tho contract
% So us nas so far as would sacc for
II part of the contract as formed by The passage
T rrce ehs IN cash S onis OF the for
done for the Government that u should nor DO
than the per cent Of the net receipts until the maui
Put from a reading OF tho Act OF 1862 although
perhaps 1t is somewhat immaer al TO state the piopo
son at this time the never & a %
Of either principal or interest Of the bonds ".6 Excepting
the ms not OF hs e on
part OF either the Government or the COMPANY ,nt
rendered to the Government, excepting the cohpchsa
ton for the transportation done for II.
Iu 1t would seem by the evidence taken SeiTr ,o
trans sport alton which, by the Act of 1862. and tho
Act Of 1t contracted TO employ tho Central ana
Union Pacific to do.
FAVOR SHOWN TO COMPETING LINES
Dlsregardlng its obligations to those companies II
has chosen other routes of transit often paying moro
for tho service in cash. AS IS shown in The evidence
Of Mr. Gray the General Freight Agent. and Of NJ
Miller the Secretary IT has sent the public stores
and supplies around Cape Horn and across the sths
of Panama and of late portion OF It's business be-
tween points in the Atlantic States and points In the
Pacific states has been done for some ds,ance by
Not only has the Government refused TO perform us
contract in giving rs business OF 10 n9
Central Pacific. that contract required IL 10 p a,
| the same price that II paid to other ana comle'ng
lines. bu it has absolutely refused to send II by me
Central Pacific. aided line, When lis rates were 'ho
| lowest II could obtain.
way Accounts says:
The Government has taken away business across
the 81 ate Nevada. and has also given pHria1n
Nchson Topeka and Fe. the Atlantic and Pacific
and the Canadian Pacific all rival roads, and !, pay
Ing them ful rates when they could get it done for
less rates by the aided Central Pacific
Tn effect OF this departure by the Government rom
the plain terms OF the contract, may lc best under
sood when il is stated that the action OF the Govern
mcnt in the Substituting of rival lines ana transform;
to the present time in decreasing the receipts Of hc
Central Pacific over seventeen millions OF doiias;
within three million dollars Of The entire amount Of AID
derived by the company from The loan OF the bonds
Of Inc Government and this consequence is an equity
TO he considered ard allowed IN stating The account
between the Government and this Company
II is shown by the books Of The Central Pacific that
all tle business done for the Government by that
Company. in TIE transportation Of freight for tho
sixteen years between 1870 and $50 inclusive,
amn1ns TO but 81 .O9e .OA7. That the cost for tho
sane service which would have Been paid at The rates
charged United states prior TO ne completion OF
thn Central Pacific Railroad. would have :beon
Slo721.o13.
And by table annexed 70 the deposition Of Mr.
Miller the Secretary OF the Central Pacific. II appears
flat in addition the 81 096 047 paid 10 the Central
Pacific the total amount paid to the Union Pacific
for tbe Same sixteen years $fG4o FOG, making
the payment to both companies S57f0.753. That at
the rate formerly paid by the United STATES for such
seryIcce The charge would have been TG1 LOB,
mailing saving 10 the United states during those
Central Pacific Railroads of s55.42l 514. Which g
alll a62 than the principal OF the bonds issued
nv fIe United 10 III. Union Pacific, the Central
| Pacific and the Western Pacific.
But In addition this saving in tho fransporfa ION
Of freight for the sixteen years mentioned above
the United States paid to the Central ana tnlon
scc for the trans poraton of troops and passengers
moving on the business of the Government S46lo.o13