Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-02-11
Stewart Makes g New Proposition 80

Stewart Makes g New Proposition 80
Congress.
WASHINGTON. February intn Senator Stewart,
when the Union Pacific funding bill was under
consideration in the Senate yesterday, offered
the following resolution;
Rss0lred that the Senate bill providing for
funding the Indebtedness of the Union Pacific
Railroad Company be, and It is hereby, recon-
nended to the Select Committee on Pacific Rail-
rosds with instructions to req n a bill which
shall provide for the payment@f the indebted
ness TO the United States of TIE several Pacific
railroads for the constructisa of which bonds
have been issued by requiusag SUMS of money
equal to the Indebtedness to the United states of
the Union Pacific Railroad Company and its
branches and the Central Pacific RAILROAD Com
pany, as successor of the Centraz Pacific ant
other companies to be expended by said rail-
road companies respectively, in the construc-
ton of such improvements onthS main lIneSof
said railroads, including double track and ten
nels 20 avoid high grades, and such new unin-
numbered railroads as Congress may approve,
and in the construction ofsuch hydraulic rrks
for the purpose Ct irrigation. as Congress 'snay
authorize with such limitations upon the
freights and fares TO 5e'charged by said railroad
companies on the roads so improved and con-
structed as viii insure cheap transportation.
THE SENATOR'S ARGUMENT.
In support of the resolution senaterStewart
coDtended, in an elaborate argument that the
Pacific railroads were National works, intended
for military aud commercial purposes for the
whole Union; THAI II was anticipated, accord
ing to the debates in Congress and Acts of Con-
gress OF 1862 and 1861, that the bonds issued by
the Government should be paid by per cent of
the net proceeds and services in carrying mill
tary supplies and other Government and United
States nails that the amount annually ex-
pendt at the time of the construction of the
road was over 81, coo 000 which was more than
double the interest on the bonds issued. and it
was anticipated that Che service that the roads
would perform to the Government won Il not
only pay the interest but would liquidate the
debt before maturity; thatetter The road was
completed, although the Government was saved
from the large expenditure which it had there
tofore made, the amount allowed the railroad
for carrying Government mails, etc. amounted
TO but little, ana the interest had accu mulated
until the original Indebtedness of abort S55, 900 :
600 had been increased to near $1,000 000o.
RIVAL ROADS.
Rival roads had been constructed which had
so reduced the pro Is on through business hat
the enormous indebtedness of the Pseifie rail
roads must be mainly paid by local traffic; that
this could not be done without such excessive
charges would destroy the state of Nevada and
other Territories along the line; that WHEN the
contract was6nade between the Pacific railroads
and the Government il was not anticipated that
thu country through which the roads passed then
supposed to be a desert, would pay any consid-
cradle portion of the Government Indebtedness,
but that the Indebtedness would be liquidated
as before stated by services to the Government.
Il is now proposed 10 collect the entire amount,
with Interest, from the locality through which
the road runs and exempt the balance of the
United States from any charge whatever. This
was unjust and inequitable.
For INTERNAL IMPROVEMENTS
He was in favor of the roads paying every
dollar of their Indebtedness in new internal
improvements, such as improving the present
lines. constructing new branch lines. which are
to be free from all membranes and upon
WHICH Congress should provide for cheap fares
and freight and also for the construction of
hydraulic works for irrigation, 50 10 enable
the people to settle the country and make bust
ness for be railroads, BE said the 500, 000,00
owed by these roads to the Government ex-
pend in this way would benefit the whole
cou try vastly more than the pittance which
could oe collected bs burdeniug the main lines
so ths they must necessarily charge exorbitant
freights aad would be unable to construct
branches and DO anything for the development
OF the country.
ARGUMENT Ely TWEED.
WASHINGTON. February 10th.-Mr Tweed,
counsel Tor the Central Pacific, addressed the
Senate ommittee on Pacific Railroads yester-
day. Re explained the provision of the
Mitch Il amendment and stated the reasons
why the Central Pacific should have longer time
to pay rs Indebtedness to the Government than
he Union Pacific Railro ad.