Los Angeles daily herald., 1888-03-27
THE CENTRAL PACIFIC
Ably Cllampioned by Sen.
atOr Stanford.
WOMEN IN COUNCIL.
Susan B. Anthony Opens the In
ternatiOnal Council of Women
at Washington.

ouSan u. AnCnOny "Opens Cne III
ternational Council of Women
at Washington.
lAssociated Press Dispatches to the HERALD.
WASHINGTON, March 26.-Senator
Stanford to-day submitted an address
to the Senate Special Committee hav-
ing in charge the reports of the Pacific
Railway Committee. He said he de-
sired to emphasize single statement
which would sufficiently answer all
vituperation that has been cast upon
the builders of the road He wished
the committee to be entirely divested
of the prejudice which false stories
about the constructio of the Central
Pacific left in the minds of all who
had heard them. The statement
which he wished the commit
tee to understand thoroughly was
that the Central Pacific Railway
Company had fulfilled every
obligation to the government and
the people imposed upon it by
the at of Congress creating it. In
not single instance, said he, had it
been derelict. Up to this hour it has
been mindful of every duy it owed,
both to the public and to the govern
ment. He then detailed what the
obligations were that the act of Con-
gress imposed upon the company.
The first one was that the road
should be built, and that it should be
completed by July 1875, bat by put
ting forth an extraordinary effort, by
hesitation at no expense, by giving
the highest wages paid in the whole
country. by working on the noun
tains during the dead of winter,
through snow f5riy feet deep, by ex-
4lausting every resource to push he
road across the Nevada desert, tne
work was finished in 80, seven years
before the time set ny Congress
That is how the Central Pacific full
filed the first obligation imposed upon
it by Congress, but the company
doubled the cost Of the road by this
exertion, the full burden of which it
had to bear while The Government
saved by the reduced cost of the
transportation Of mil Try stores and
mails up to '76, when the act of
Congress compelled that the road
should be finished, more than the
company received in gold for the sale
of bonds received from the Govern
ment.
The second obligation imposed by
the act of Congress was that the Cen
fNo ont Af
the net earnings to the United States
from the completion of the road and
thereafter. This obligation has been
performed fully and conscientiously
from the day the last spike was driver.
The third obligation imposed by
Congress was that the Government
should have use OF the road for postal,
military and other purposes. This
has been granted in the fullest.sense
of the term. The company performed
generously and immediately every re-
quirement Of the Government. Every
officer appointed to inquire whether
each letter of the law had been OBJ
served has reported that the company
is defaultant in nothing.
The fourth obligation imposed by
Congress was contained in the Thur
man act, and when the original con-
tract was changed by the passage of
the act which the Central Pacific be-
lieved violated every principle Of the
laws Of contracts, it being advised that
alteration OF original contract by legis-
lative department was beyond its au-
thority, and that the act was invalid,
submitted the matters to the courts,
and when the courts sustained the
validity OF the act the Central Pacific
complied with it and is still comply
ing with it, although TO the great
detriment of the corporation and the
government.
In repy to the question asked by
the Chairman as to The effect Of the
Thurman act, Senator Stanford said:
SIT disappointed its promoters. The
method of investigating the fund was
a failure, even if business had not
fallen off by reason of competing lines,
this defect in the bill would have rem
dered it worse than useless. Tue
fund has not accumulated. The Sec
retary of the Treasury has invested
mo ey in government bonds. paying
an average premium therefor OF "a per
cent. There has been paid IN by the
Central Pacific Railway Company un-
der this act, $685. 800, the loss on
which, up to August, 1887, was
1872, 1865, in fact, all the inter-
est in the fund has been lost,
and for all practical purposes,
there is less money in that sinking
fund than the amount paid in ty tn
company by over $500, 900. This i,
the history of the company in its
dealings with the Government. In
performing every detail of its obliga-
ton it has been scrupulonsly faithful"
Senator Stanford said he would not
speak Of how the Government had
acted toward the company, although
it had dealt vigorously with it, har-
rassed it in numberless ways and
forced new contract upon it against
its will, and to it's great detriment.
He next directed the attention of
the committee to the rumors that the
builders OF the Central Pacific had
made vastsums of money at the ex-
pense of the Government and the
people. Every man who examined
the financial history of the great en-
terprise without prejudice would treat
these stories with disdain. The Gov
ernment gave the company, in bonds,
$27 1865, $50 which we're sold on an
average of 72 cents on the dollar, and
which brought the Company only
500, O,44S, ,466. The Company also re-
ceived for the sale OF it's own first
mortgage bonds about the same
amount, making the total received
from both classes Of bonds about $4l,-