New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-01-05

crfy. IL cOmpcls tbs companies over to
Government, or It's agents, money to which the Gov
crnmcnt Is not entitled. That 1t VIII be entitled by
III, contract 10 Hike amount at some intuse tire
does not matter Tine Il n part OF The contract
1t is needless to refer TO the importance TO tho con-
pancs OF III. time which the contract gives II be
alleged that the security OF the Government requires
this 70 be done In consequence Of waste or dissipation
by the companies of tho notgsse security that Is
question to 10 settled By judicial Investigation, WIN
opportunity OF Defence. 4 prcjudgment of the qncs-
ZION by rhs legislative department is usurpaIion OF
to alter amend aud repeal the charter Is not sufficient
,c snihorize Tho passage of the Law in question.
will only add further. that ,he Initiation of this
species of legislation by Congress is well calculated
TO excite alarm II has the effect of announcing 10
tho world and giving 1t to be understood that TINS
Government does not consider Itself bound by its en-,
easemcnts. It. sets the example OF reputation Of
lie credit. II asserts tho principle that might mafcs
right. II saIs the foundations OF public morally
crly 10 addressed to The legislative discretion In
when forced upon The attention 10y what IN my ?nng
power. they have moro than ordinary weight and
significance
Mr.. Justice Field said
Tho decision WILL in my opinion. create insecurity
In the tito TO corporate property in the country H.
In effect. determines that the General Government
In its dealings with the Pacific railroads Is Under no
obligation to fulfil its contracts and that whether II
shall do so IS question OF policy and not OF outy.
The relation OF the General Government to the Pacle
companies Is twofold: that Of sovereign In its own
territory. and that Of contractor. AS sovereign, us
power extends TO the enforcement Of such acts ana
regulations by the companies as VIII insure IN inc
management Of heir roads and conduct Of their officers
In ifs territory the safety convenience and comfort
gacemcns equally with a private indiv dual It can
not be relieved from them by any assertion OF rs
The Government tho Central Pacific accepted and filed
Its acceptance as required and thcreupon the pro-
visions of tho became cont act between 1t and
tho United States as complete and perfect 1t could
be made by the most formal instrument
BY tho Act OF 1879, additional security Is required
for the ultimate payment Of its own bonds, and the
subsidy bonds OF the United States by the creation OF
The company Of 70 deposit 100000 year in tho
Treasury of the United States II Is not material IN
post of this largo in tho Treasury of the creditor
DO termed a payment, or something else. ~ Is INC
cSna contrast ,ro V aid not spnae Which constitutes
the Objectionable feature Of tho Act OF 1878
I cannot assent to doctrine which would ascrloe
to the Federal Government sovereign right 10 Urea.
as II may choose corporations with which 1t deals ana
would exempt 1t from that great law S o. mo a ny
dlvlduals. TO do justice and keep faith c..,u.,
In tho case at bar the contract Ta the The
pany is compelled to accept II in its changed FORM
and by legislative Decree without the @ mol OF
keep tits its faith little better can DO expected from the
citizen II contracts arc not obs s mo shows
that rights OF person are unsafe whore property -
Protection to one goes %.h nor or
progress where this foundation OF all Just government
The moment. said the elder Adams, the idea is ad
mittcd into society that property IS not a. sacred as
the laws Of God, and that there is not force OF law
commence
WHAT The LAW HAS ACCOMPLISHED.
Under this law, which received such scAthing de-
nuncia from three Of the venerable and learned
judges of the Supreme Court Of the United States tho
Central Pacific has paid into the United States Treas
ury, up December 81, 1885, for the sinking iuno
account, So l6o,630 so.
portion oi this sum has Teen invested by tho
Treasury against the earnest protest Of the Central
Pacific I'm the purchase Of bends Issued IN AID OF inc
construction the roads, known as currency o1Scs'
at premium Of 81 21-1OO per cent IN other wora,
the bonds which the Central Pacific sold at discount
of about 80 per cent to obi ain money for the construc
ton of its road, the Government has purchased at
Tor which tho Central Pacific received $744 40, the
against Its % 1 h o ''' 40
The total loss the Central Pacific, from this MODE
Of handling the sinking fund, up to this tme' may DO
stated as follows:
Amount paid into the sinking fund.- s3leS, Coo oo
Premium paid on bonds. s94''222 Az
premium received On o.o
rn sssss received $4,000 s7soss s7ss Is
Balance in fund.- bonds and cash. 49,. s229o,ls7 %
Interest that would have been earned By
the companys Investments 70 June l. -. ..n "a, =.
Balance SSe Of deact to date BY Government
investments o'z'4oo 10
Loss to Central Pacific by United States
sinking fund investment sl,6l296 az
II the money paid into the sinking fund had been
left with the Central Pacific and allowed to earn, and Il
today be In the sinking fund 81 612906 ~ more than
there Is.
companies by any law which not now fulfilled. .
But the Governemnt does not appear to be at all
Uneasy about the unfortunate position in which the
finances OF these roads have been placed under the re-
quiremens of the Thurman n, Bill .,.-,o.. chow. %
the credit OF the Central Pacific, uninvcstcd $1,000,
900 49,
More than one fourth of the sum now In the sinking
fund is unnvestcd, because under tho law this und
can only be invested In Government bonds which
charge high premium and pay, low interest.
II larger discretion were allowed the Secretary Of
the Treasury tho whole fund might te invested and at
In the seven years since 1873, only the sum Of
which has produced in interest but s437 524 o. This
proves that the law Of 1873 cannot accomplish the OBJ
There probably never has been so .obtuse, unjust
and unntellgcn mode of caring for the property Of
this Thurman Bill. The responsibility of providing for
the Company's Indebtedness has been assumed by tho
pany proposed II any of the Suggestions made By
The Company had received favorable considerations the
amount now he applied to the payment OF us IN
debtedncss would have been Increased by at least %
per cent, without reference to the proposed payment
incurred tho mpiovident manner In which Congress-
aud the Treasury officials have managed ihls sihhihg
fund
II cannot be charged that the Companies are in any
negligent In the matter Of providing for ibis emer
Union Pacific Railway, and alr. Huntington, for tho
Central Pacific Joined in letter to the secretary Of
amount earned fiom Government trans potation, in
comparison with the amount anticipated, and the an
cipafci decrease in receipts Iom the completion or
rival lines aided by the Government, the Companies
would he unable t. meet the Indebtedness al maturity
unless by wise provision Of Jaw. This commit
duly referred {, Congress- but for years
no action taken upon It,
The COMPANIES CfCled TO transfer back their un
sold lands at fair valuation, part payment OF The
debt and 10 set aside, ON tie net earnings hXcd
sum SENT annually, 10 continue until tho debt was
discharged. 800
On The day OF the Introduction Of the Senate BILL
Nfr Iife-D pres ,f tua(
clfc RAILROAD Company, addressed etter to tho Hon
George L. Edmunds, senator from Vermont, In relation
to lis provisions. This letter referred 10 tho
Committee on Railroads and ordered to be printed to
accompany Senate Bill 657.
1t would seem that all efforts OF the Company 10
come to any understanding with Congress TO the
mode and manner Of establishing sinking fund, or
the extent of that fund.- futile, and therefore, as
tho Commission have from the minute book OF
Ceniral Pacific It's Rnard of Directors. Janu-