Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1888-04-14

tnen met by the Thurman Act, which relieved
them from all responsibility-an Act which its
promoters said would be final settlement and
adjustment between the companies and the
Government of claims of the latter. This Act
provided that there should be retained III the
treasury of the United States the whole of tire
amount charged for Government TRANSFORMATION
and sought beside to make I'D IS uer cent ot
the net profits of the railroad companies II
wss not then anticipated that so soon Other
transcontlneniaI lines, subsidized at the
expense of the Government would enter
into competition with these lines and divert
their traffic and reduce their net profits. 1t was
then claimed that the people of the whole
United States should bear the burden of repay
ing the Government bonds with interest that a
sum sufficient 10 make this repayment would
accrue to railroad companies from a tax levied
by them upon the traffic of the whole United
States passing over these roads, By reason of
the fact that the securities in which this sinking
this expectation was disappointed.
THE BILLS PRESENTED.
BY the Commissioners provide for refundine III q
debt of the United States with its Accumulated
interest at the rate of per cent per snu1Irn
They also provide for sinking fund which
shah i, eiX XII not only that debt but the
whole debt Of the companies within a period of
.hity years. They do not stop here but they
provide further that the bills which thew pre-
sent may, II they become laws, be altered
amended or repealed at the win and pleasure of
the United States II is difficult for a LAWYER to
conceive Of a contract, which he understands
TO be an agreement between two or more par
ties, for q valuable consideration 10 do or not IN
DO certain thing, which shall bind one partv
and Which the other has Il right to change at
MS VIII or pleasure. II is claimed that this will
DC a maj settlement of the matter. Not So
Nnen had looked over the whole field .sWhen
! hsd seen that the Central Pacific Railroad
Company had faithfully performed every obliga-
ton to the Government of the United States
when knew that no further obligation
would accrue for ten years, | naturally
looked about TO see why this storm had been
raised. In my own mind ! entertained the
thought, but never expressed it, that the Atchi-
son Topeka and Santa Fe Railroad Companv
the Northern Pacific Railroad Company. the
Canadian Pacific Railroad Company pressed as
they were by the competition of these roads.
Iaa an order to destroy the credit and impair
the competitive power OF the Central and Union
Pacific Railroad Companies For this thought
never expressed, owe and now make apology
10 the rlyal companies came here and found
placed upon the record by the President of the
Union Pacific Railroad Company and BY the nj.
rectoIs or that company, some OF whom are GOV
eminent officers charged with the interests of
lhe Government aud with the execution of its
laws, the fact that the corridors of this Capitol
and the Rnte-chambeIs of Cabinet Ministers
were sWarming with the emiSsaries of Wall
street Wreekers, who looked upon the Central
and Union Pacific as rich spoils for their mas
tiers. Their purposes could be carried ont
These declarations of the President of the Union
Pacific and of the Government officers are on
the record. We find from them that hills have
been int soduced into Congress affecting these
roads, their Interests and their credit not for the
public good, but to serve.
THE ENDS OF wALL-srREET
Manipulators. | do not make these charges. 7
have no knowledge that they are true but they
stand upon your record undisputed and mnst
accept them. Nor do here impugn the motive
of any member of either house of Congress who
has introduced or supported any such bills An
eminent commentator says that the greatest
difficulty in the way of The law-giver and the
law-expounder is the difficulty of a.certaining
facts; that however pure and upright one or the
other may be, false conclusions may be reached
because the facts have not been presented /
am here now TO say that neither of the bills pre-
scented by the Railroad Commissioners will con-
stitute, II passed. q final settlement or adjust
ment between the Government and these COM
panleS. we nave heard a great deal about the
value of the lines of these railroads but the
Senator from New York on this committee most
truly said, when these matters were pressed
upon his consideration, that a railroad comnany
never sold its road or its terminal grounds: that
the value of a road was not computed bv esti-
mating the value of the rails and ties the
grounds and depots, but by its earnings Ii this
De so-and agree that it is-theu neither the
Union nor the Central Pacific Railroad Com
panies, as corporations, can discharge their
financial Obligations TO the Government or any
one else out OF assets in hand. These obliga-
tions must be discharged out of the earnings
and these earnings come out of the communi-
ties through which the roads pass In the he
glnulng 1t was thought that such profits would
constitute burden upon the whole nation, but
Congress has subsidized other roads, other trans
continental roads have been built BIZ means of
such subsidies, aud the through business has
ceased TO be source of profit. These roads
must
DISCHARGE THEIR OBLIGATIONS
Both to the Government and private parties cut
OF proceeds of business derived from communi-
their local business ANY burden which YOU
impose upon either company must then be sat
lsfied by such communities and therefore should
De reduced 20 the minimum. In the business
OF railroading no subject is such source of an
noyanee and complaint the determinations
made between competitive points. II is di1fi-
cult 10 make the people understand why, if
railroad company transports freight from San
francisco to New York on a given rate il can
not transport freight from an Intermediate
point at the same rate. II is difficult to mako
the public understand that railroad Companies
90 not at all regulate the price of transporta-
tlon between competitive points, and that the
customer does; that as between such points they
must take freight and passengers at rate far
oelo% tne average cost OF transportation, if that
cost be little above the mere cost OF move
ment. 1hese problems Will never be satisfac-
torily solved until transportation by rail nv
means OF improved appliances and cheapened
fueI snail have been reduced to the level of cost
OF transportation by water. The effect of the
bills presented by the Commissioners will he
70 impose on the people at local and non. com
petltlve points tax which it was originally the
imposed upon the whole Union This is not
Just, and no Act Of Congress founded on this
theory can long be maintained. The people OF
the West who live along the lines of fhes.
transcontinentai lines are no fools. They ron
resent, in fact, the hishest type OF our
races Ihey are quick to look be-
YONG 70 the shadow ana seize upon the substance
II Congress should enact the bills which the
commissioners nave presented, and
IMPOSE UPON THEM THE BURDENS
Which it was originally intended that the
whole people OF the United States should bear
they will be quick to perceive and to clamor
against them Nebraska, Wyoming Utah,
Nevada and California will soon be in these
halls asking for readjustment of the matter.
Why should the United States seek TO make
profit out OF these communities which have
only reimburse the United States. but will
bring profit. The legal tender snotes of The
United states, not bearing interest, pass in the
markets OF the world at their face value, the
Obligations of the Government interest az the
rate OF per cent. per annum would therefore
be at premium, and their issuance at the rate
or per cent. per annum would bring to the
Shiteo sta.es prohi, but profit which must
be taken from the local and non connective
communities along the line of these roads
THIS is not the only reas IN why these bills v N
not constitute iinal adjustment, for within
themselves they coltain other provisions wh ich
leave the question sought to be settled omen
and which will bring them before every rccur,
ring session of Congress. These bills provide
tudt lneH ms. DC altered, amended or repealed
al will The ''emissaries of Wall street !, abont
whom Mr.. President Adams and his associates
the Government Directors, speak the default
ing clerks and discharged employees. will still
haunt these corridors, equipped with AL the
power 10 mischief which now the have What
ever is done in advance OF the time when these
obligations mature should be done with a view
to final adjustment and settlement of these mat
tiers in dispute. Bills should be so framed in
the interest of the people and of these COM
panies that the action OF Congress shout CON
stitute iinality. That on the one hand no I'M
due burden should be imposed upon local com
afforded TO evil disposed persons to
PGEcIPITATE ANOTHER STRUGGLE
To iniure or affect the credit of the companies
While it is true that this committee has been
chosen by one party 10 the contract while per
sonally your interests, with but q single exvep-
ton Senator Hearstl, may be adverse TO the
interests of these companies and the communi-
ties from which they draw their support. vet
that interest is so slight, and l know would
efec. your judgments so little taat as the repre-
sentative OF the Central Pacific Railroad Com
pany woald be willing. if the United States
would consent, to constitute you arbitrator to
determine all these questions. 10 you, with but
a single exception Senator Hearst) am a
stranger. To me you are well known The
record of your services is part of the history of
my country, and they bring to me and to the
people whom represent an assurance that the
duties which have been imposed upon YOU Will
be sacredly discharged. have trespassed upon
your patient kindness for three DAYS | have
done this with the full knowledge that Senators
OF the United States are oyorworkrd: that If you
bring to the discharge of your duties all of the
abilities which you possess, the whole of your