New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-01-05
i, ,hev verc representing both sides OF

road IN payment; And "a, e ~nun such relations.
they merely o op So s s
nwn Interests both sides, 'h TSo hecawa Tia In
own ,. in tho TRANSACTION Inc! wcan,' 'hc IN
Of tho that r nna tho head
subscribed for stock ana M So env one was Wrcnred
tncf S' actlon Tho rule OF equity invoked which
has It's orn a,pv did not apply them because they
We're acting their own ncrest anu wcre TO- %
win ,ng ne,son interested tho subject matter
tn ncrect The railroad system Of the West Coast,
Tor nhHTn "ar, of tho state and make connec
ton al Portland, which became necessary i1r the P,"
TO the Northern Pacific. The promoters OF the te"ra,
Pacific Incorporated the California and Oregon 70 ran
known as Rosevle the northern boundary OF Inc nc
state of California, with such extension lno VI ecm
Of Oregon as It's directors might aies"''A
proper ...,o, with the
S0rx OF i, ,s road Of the Oregon and california
COMPANY, which was commenced al ny ~ Central
Pscc al the California line owins to me ,a', was
of the original promoters ana une ne nresrnt owner
ssn TS Work Of enormous difficulty ana cost mas
st last been achieved thus eiving ana poand and
direct railroad communication between f"se' "ou""
and tho City of Mexico c., n,.,ec pauroad
Company Of California Of the Western ra Sc san q Franc ,ne
San francisco Bay Raoad Company c co of the
ssn JOAQUIN Valley Railroad Company ami OF the ca al
Oa and Ea9co OF hs Stock Of the new
Central Pacific Railroad Company.
For the stock Of the Central Pacific OF Call z-o ,oo
70, r0 'he stock Of the Western Pacific. 1890 600
ro ,hr s,orS q, the San Joaquin Valley. 305 900
For IN, t stock Of the San Francisco Oakland ,eo ON
The entire capital stock of tho last mentioned con
sodacd Company being the Same as .ha OF inc b
Sons roads consolidated with st the Centre ,ss
Earnings Of the main limo and the policy OF consoli,
daon to put them all under one S ana
run them all In system, was certainly wise man
agement in saving cost of superintendent, ahd' 10
extent Of motive power and UP ay ,, Com
msonos ;a 70 Witnesses that appeared before thcm
the. noSsc sns By T capital
stock As we have heretofore said that IS matter
Ts socRbodsr has been heard t" complain All those
who stock at present bought In view ana ~ thn
ianly from position that the Government occu
' The surplus earnings divided among the stock
holders and whether those earnings were d~deo "eU Tn
millions. does not In any way int erfcre with the rights
or the security of the Government
Afer this consolidation various roads were built by
the directors of the Central Pacific, through one or
her Of the CONSTRUCTION Gcmpanes Many ih OF ssem
ten nc ad sh on Slds Sc ats s pesn
this respect in all the other acts OF the Company
n c onS W vi un%sraRen pT the directors Of the
Central Pacific which has IN any way Withdrawn any
ttruciion of the Southern Pacific, which they were
forced TO undertake In consequence OF the legislation
thew had not Undertaken it, would have resulted
moro dsastrousy TO the revenues OF the central Pa
the Commission shows that unless the directors Of the
Central Pacific Road had concluded to undertake. Its
of tSe Central the would have
toed or Endorsed eighty or one hundred millions OF he
bonds OF the corporation represented by the late
Thomas A. Scott, to be used in such construction.
XII.
CHARGE OF DIvFRT1NG TRAFFIC FROM AIDED
TO NON-AIDED LINES.
II Is said that traffc has been diverted from the
aided to the non aided roads That is true only in
ono case and for that the Government, and not the
directors. is responsible.
As to tho roads built in California that are not In
cuded In the system of the Southern Pacific Railroad
Company all have tended to increase the earnings Of
the aided line: and this is also true Of such business
a. the Southern Pacific gathers In California ana de-
livcrs to the Central Pacific at Goshen
Eut, as say. the diversion of the through bust
not the fault Of the Central Pacific The Government
forced this property on the promoters OF the Cenrn
within a certain time. and it must have known that
Il two roads to do the transportation business
for the limited population upon the Pacific coast the
would necessarily divert patronage from the other
We say. that the Government forced IBIS ROAD upon
the Central pas s When the 70 ssep If wss IN
crippled financial condition. 1t had, from the
great difficulties OF construction ana from the con-
dillon Of the markets for labor and materials at the
time at which IT was constructed and from the uI.
parallced haste OF sneh sPn hnd
ing Of two such roads.
And so with the Southern Pacific. With the easier
grades upon that route the aided roads were In no con
dton TO stand the contest with the southern facinc
Railroad in adverse possession nor could they ,ahe .ne
risk of allowing II to be built by Mr. scott or others
In The Interest OF the Pennsylvania Railroad with
moneys furnished by the Government.
II was not choice for the Central Pacific, whether
would construct this channel for the diversion OF
business from tho Central Pacific.
But by tho course adopted The Central Pacific has
controlled this great element of danger and has Kept
the aided roads In good condition. financially ana
physically. ana they never were IN better condlii2n
than they are today perform tho contract with the
Government under whsh aid was oftiincd keeping is
road in state Of usefulness, al all times ready to
Weld all the services to the Government in the trans
pora'ion Of troops. munitions OF war, pubic sores
ana the malls. whenever tho Government lei, thai IL
could afford TO pay for the services Of a frstclass
road instead Of sending rs business around Cape Horn
Our fathers and they wise men in their
Grafton left The contests between the governing power
and tho governed to the calm placid and mcdiaiing
comfy of the courts provided by the Constitution
Tho constructors of the Central Pacific say We
entered into contract 10 assist in the performance OF
. national undertaking which was supposed and de-
clarcd A. the time 20 be imnoSsibility; we rsked
The srIts Of onr abos for two of years
in aiding the Government 10 reclaim the territory DC
:hc Mis- url and the Sacramento and to more
II our worldly substance and rshcd orr lives by ex
rosn~e 70 the elements amidst the rigorous winters
Of tho Sierra Ncvadas 10 carry I'm good faith the
contract we had made and to do IT in half the time al
lo'ted We now and say 10 you that In making
that contract No relied on your statement that you
would give to these two roads the patronage OF the
Government which had averaged for many years not
icss than 81 300 600 and which yon expected would
largely increase in the future: and that the revenue
from this Source expected. and as You expected
and so announced IN the debates In Congress:
would cover Inc credit which you advanced
10 ne and hr interest that Won were to pay for orr
nse Of such credit and we say that you have so far
fallen short in your contract with to render to
rs yonr business amounting tO but Onetcnth part OF
the promised compensation. and although yon agreed
10 nav us for doing ell your business reasonable and
fair compensation and the same rates paid 70 us by
orr other patrons that yOn have far disregard
cd YOUR obligations I'm The premises as 10 keep from MS
all the transportation yOn controlled which you could
ship other line not even giving to Us the pref
erence at tho same prices and we show Won that by
omr efforts and the of capital yOu have al
ready saved by the performance Of contract and
retained in your Teasury over $4,000 900: and In