Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1888-03-31
Greed Haymond'S Address to the Sen
ate Committee
PLANS FOR A SETTLEMENT.
A First Mortgage on the Company's
Property and Terminals, with
> Interest. Guaranteed by the
Southern Pacific.


Committee on Pacific Railroads yesterday morn
ing.
The several Senators composing the commit
tee listened attentiyely to Mr.. Hayniond's effort
displaying their interest By many interrogato-
ries. The argument Violently made decided
impression.
Mr.. Raymond, speaking rapidly and with
force, said
! was attempting TO show you at the last meet
ing that while it true in point of fact to-day
that the aided line of the Central Pacific alone
might not be able to discharge the whole in
debtedness, yet the Central Pacific Railroad
Company bad, through the foresight of its Di-
rectors, acquired sucn property and so strength
ened that aided line that there was no difficulty
at all in the United States eventually receiving
interest
1 was asked by some members of the commit
tee my views, and was asked to submit a bill.
In answer to that | stated that after you had
gone over this matter you would in my iudg-
ment, find very little difficulty in drawing a
bill.
If this committee could take the bills which
are before it and present to Congress bill
which met the approval and had the indorse-
nent OF the committee. think it would be far
better than TO have a bill presented by the rail-
road company. of course the House bill and
the bill introduced by Senator Eyarts are here.
! viii not follow the order that / had out
lined, because see that / must not press so
heavily upon your time, and want to close to-
day ii possible, or at least get so far along that
can fiuish in writing and so submit the bal
ance OF my argument in fifteen or twenty min
utes.
ABLE TO MEET ITS OBLIGATION
shall endeavor TO show you this morning, by
leaving the chronological order of things that ic
is absolutely true that the Central Pacific Rail-
road Company is to-day a strong corporation
and that It's property Is safe provided the Gov
eminent deals with 1t as an ordinary individual
VOIlid hat fhnr &c NO Iav,ex -x1f
the debt being lost
Now, 1 viii call your attention to the map be
lore you, which Is drawn on large scale to
show you the aided portions of the line and the
unaided, and also the support that we have
brought to it. both directly and indirectly, and
why say with SO much confidence that the
Central Pacific Company will be able to meet
every demand which the Government is en-
title d 10 make on it.
The original incorporation of the Central Pa
cific Railroad Company provided for building
railroad from Sacramento city, on the Sacra-
mento river, across the Sierra Nevada Mount
aims to the State line. The capital of that cor
poratiOn was $1,000, 900. They then secured the
right of way through Nevada.
All that was done before any Acts of Congress
were passed, with view of slowly pushing BY
State, county and city aid and such resources as
they could bring to bear, road out into this
Territory, no one anticipating at that time that
railroad would be built from the East because
none OF the Iowa lines at that time had reached
the Missouri river.
All our people believed that the Rocky noun
tains, as their name implies, would interpose as
many dlfheultles in the way of building rail
road across them as was the case with the
sierras.
POWERS CONFERRED BY STATUTE
The Act of 1862 provided the Central Pacific
Railway Company might come in and share the
aid given by that Act with the Union Pacific
The Act of 1864 and subsequent Acts authorized
the Central Pacific Railway Company to increase
its capital stock, not to exceed 100000, 600 and
to build to a junction with the Union Pacific
The result was that the Central Pacific Railway
was completed from Sacramento across the
chain OF mountains; across what we then called,
and what may now be properly called the des-
ert of Nevada and portions of Utah to point
within five miles of ogden.
Although the Union Pacific did build great
many miles west of Ogden, we also paralleled
that road, and subsequently, instead of laying
the rails upon our line, we purchased the Dor
ton of the road which the Union Pacific had
constructed to point five miles west of Ogden
This made the actual terminus of the Central
Pacific Railway - miles west of Ogden, al
though the business terminus for the purpose
of convenience, has always been at Ogden.
That left TO the Union Pacific the control of all
the country lying east of a line drawn north and
south through the Great Salt Lake. This left us
then 1917 miles of road from point near Og-
den 10 the city of Sacramento.
That of course then was the terminus and the
connection was made no railroads having been
built at that time, by. steamboats, belonging to
the California Steam Navigation Company with
the city OF San Francisco.
THE WESTERN PACIFIC.
Then a grant was made to the Western Pacific
TO connect the road, singular as 1t may seem,
with San Jose. At that time, while San Jose S
prospect of importance was not so great il was
quite q town. 1t had been one of the old CAPT.
tails of California. Strange to say that line did
not run TO San Francisco.
The persons who were building the Western
Pacific, the corporators and Directors. became
involved in difficulty with some of their con-
tractors.
Our people at once saw that no transconti.
mental railway pnnld al
anticipated that some person would build a
direct line, crossing the Sacramento river at
the city of sacramento, touching the bay of San
Francisco, and thence by ferry across TO the
city, which would make it a very much shorter
line.
FAILED TO PURCHASE.
When the Western Pacific people got into diff
hculty they proposed to sell to the Central Paci-
nc Railroad people, and our people agreed to
buy, and did buy, this road and finished it.
But they never purchased the land grant The
original owners of the Western Pacific held
that land grant, which was the most valued OF
all the land grants. But strange as it may
seem, at that time it was believed that the
plains of the San joaquin, which have since
turned out to be so fruitful, were of no value.
Our people were from the East and the West,
and were not acquainted with that country,
which, in its nature, could be more nearly com
pared with Spain than perhaps any other And
while the Directors and owners of the Western
Pacific offered that grant 10 us for 100000
we refused 10 take it. II has since been worth
millions
We built that road 12S miles through to San
Jose. Therefore we were left with road run
ming from San Jose to point within five miles
OF Ogden; there was no chance such &c the
Union Pacific had of running through a fertile
and rich country, TO build branch lines and
feeders through Nevada, as there was no bust
ness which would have justified it.
ONLY METALLIC WEALTH.
The mountains of the Sierras contained no
coal, nothing of any kind that we would ever
have been able to work except gold. The gold
in the mountains of the Sierras was found in
the ground. There were some new quartz
lodges, but no grand deposits that could be
taken, similar to the silver deposits of Nevada
Out of the latter industry there grew up
great many large villages aud towns along the
line of the Central Pacific road, and the popula-
ton being mainly males Of course there was a
great deal of traffic and trade there.
As these men were working under improved
processes, whole mountains were torn down
and thrown into the valleys. and IL babe fair in
time to destroy great portion of the valley.
~ ineteio.s sSeps were taken "Ilc men eventuaiiy
led TO the stoppage OF what is called hydraulic
mining, and these town along the line of the
Central Pacific Railroad have been almost de-
populated.
Splendid mines are living there. but they never
can be worked. There is an exception when
you get into the foothills from Colfax, fifty
miles from sacramento, down to within eighteen
miles from Sacramento.
TIE FOOTHILLS.
II has been found that what we call the foot
hills are fitted for grape culture and fruitgrow-
ing, and large towns are now growing up with
smother interest, which WILL in time, of course
strengthen this line.
The finest fruit in California is raised in New
castle. which is thirty-one miles from Saera-
mento.
OF course we had no terminus in the city OF
san Francisco. But there was a line of railroad
in private ownership running down from San
Francisco to San Jose. The company started in
at an early day to do what the Commissioners
Say was right IN relation TO the Union Pacific 10
build branches and occupy the territory, aud
strengthen the main line in that way.
THE ALAMEDA LINE ACQUIRED.
The first thing they did was to consolidate
with railroad called the San Francisco, Oak
land and Alameda road extending from a
point on the line of the Western Pacinc at Niles
TO the western shore of the bay Of San Fran
cisco, a d stance of f3l miles. When that road
was taken into the system il vaS made part OF
the Central Pacific road as much as though il
had been constructed by that company. Then
we had for the first time a line through TO San
Francisco
Our people since then have purchased that
line, which was then a road not up TO the stand
ard of transcontinental road at ALL and at
tempted to acquire Goat Island, which stood
within few hundred yards of the city of Sar
Francisco, in the bay. but that was before the
day of long-range guns, and it was supposed
that the island was necessary TO the defense Of
the harbor of San Francisco. OF course since
failed to get that island and then ran out the
on treste work at first, but now that is filed IL
for lsSre do Eranr fh.a s-w Qn