Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1888-03-28
THE RAILROAD AND THE GOVERN
MENT

Governor Stanford's second address be- |
fore the Senate committee on the reports !,
of the Pacific Railway Commission, en-
phasizes positions taken by him when he
first testified, and presents them in new
and stronger lights. One statement made
is of special Importance and should be
thoroughly well understood by The people, |
for, as Governor Stanford well says, il |
completely answers all the vituperation
and abuse heaped upon the railroad build |
ers, and all the insinuations of dishonesty
against them born of denagogy and an
envious spirit. 1t is, simply stated, that
no obligation placed upon the Central
Pacific Railroad Company, and involving
a duty by it towards the United States,
has remained undischarged. There is not
line or letter of any contract between the
company and the Government express
or implied, that has been violated or
avoided by the former. 1t completed the
road as it contracted, and seven years in
advance of the calls of the contract, that
is to say, in 1868 instead of 1876, though it
involved doubling the cost to accomplish
this feat. The Government thus saved
vast sum in reduced cost of transportation
of troops and mails for that entire period
The contract called upon the company
to pay 5 per cent. Of the net earnings to
the United States from the date of the
completion of the road, and this has been
paid over to the last cent. 1t was pro-
vided in the contract that the Govern
ment should have the use of the road for
postal and military purposes, and this has
never been denied, hindered or interfered
with, but the Government has used the
road precisely as and when it wanted.
By the Thurman Act the Government
imposed a fourth and new obligation upon
the company, and notwithstanding the
fact that the Act was direct interference
with and distortion of the original cove
nant, and a violation of its terms, Gov
ernor Stanford points out that the Central
Pacific Railroad Company has complied
with every requirement of it, though |
it mas entailed loss of over 100000 |
upon the company, by reason of the fail |
ure of the investment of the fund created |
by the Thurman Act. Into this fund the |
company has paid $3,1S6,000, but as the
scheme of investment of the fund by the |
Government failed, the loss in interest |
alone is $l,612,966, and, adds Governor
Stanford, for all practical purposes there
is actually over 100000 less in the fund
at this date than the company paid into it.
A great deal of buster has been in
dulged in about the private fortunes of
the railroad builders, and a charge, in the
nature of an insinuation, kept to the front
that they made them out of the road, to
the detriment of the Government. Gov
ernor Stanford does not hesitate to meet
these charges, and his reply is emphatic
and conclusive. Every dollar that the
company realized from aid rendered it. |
he points out, has been proven to have
gone into the construction of the road. |
The Government gave the company bonds |
which it was compelled to sell at heavy
discount; the proceeds of the sale of its
hrst-mortgage bonds, added to the former
sum, was wholly expended in building the
road. But the construction of the line
created or developed values, by developing
the country and opening fields for industry
and settlement, that had not been looked
for by even the most sanguine.
at was" says Senator Stanford, "by
creating values where no value existed
before, that the builders of the road gath
cred their fortunes"
There is nothing new in these state
ments, however, but it appears to be neces-
sary to reiterate them and challenge their
denial in order to bring the asSailants of
the company to the line of well-deined
issue. He who has desired to be intelli-
gent upon these subjects has never found
it difficult to inform himself. They are
matters of history, and there has never
been any concealment of them. The indi-
cations are that the public view is clearing
steadily on all the questions relating to the
position Of the transcontinental railroads
towards the Government, and that public
Judgment, when finally rendered, will be free
from the mists and fogs with which dema-
gogy and unnatural prejudices have so
long beclouded il. 1t will do Justice to
the railroad corporations, and while de-
handing performance by them of every
duty, will not ignore those undeniable |
equities that soften the rigors of the rela-
tion of debtor to creditor.
WOMEN IN COUNCIL.