Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-04-27


is the legislation that ought to be had.
The idea of collecting this debt from the
roads never entered into the head of any
member of the Congress that passed the
Act otherwise than by services to be rem
dered by the roads TO the Government.
The only provision in the original Act of
1862 for reimbursement was five per cent.
of the net earnings and the amount of
transportation and telegraphing to be per-
formed for the Government. This was to
be deducted from the principal and interest
and it was shown by various parties that
this provision would not only pay the in
terest, but it would pay the debt and re-
deem the bonds long before maturity.
Many inquiries were made during the
debate as to how the bonds would be paid.
The answer invariably was that the
BONDS WOULD BE PAID IN GOVERNMENT
SERVICE
And the bill so provided.
The Act of 1862 was not liberal enough
in terms to secure the construction of the
road. The Central Pacific, however, under
took it and built short piece of road near
Sacramento. The Union Pacific did not
undertake it at all. The had organized.
but did not undertake the work. In 1864
the Act was amended and much more lib
eral provisions were inserted. 1t was pro-
viGed that these roads might make 8 first
mortgage equal to the bonds issued by the
Government. According to the original
Act bonds were to be issued as each forty
miles OF road was completed. This was
changed SO that bonds were issued as each
section of twenty miles was completed. 1t
was provided also that instead of the Gov
eminent retaining all of the earnings of
the roads for Government service only one
half should be retained; and it was con-
tended then that one-half of the freight
and other Government service would pay
the bonds before they were due. But Con-
gress in all these Acts insisted upon the
Government service being done by the
transportation of munitions of war and all
other Government supplies. That was not
changed in the later Act but it was re-
quired; and in the Act of 1864 the Govern
ment agreed to retain only half of the
compensation due the roads for Govern
ment service. Under this changed con-
tract the road was constructed.
To show that it was not anticipated that
this debt should be paid by the local traffic
on the roads, l shall read some extracts
from the debate. l want 1t paid as much
as any one, but l want it paid in such a
manner as to
DEVELOP THE COUNTRY
And answer the original purpose. | donot
want it paid alone by my State or by the
other localities through which the road
runs, for it cannot be paid in that way. If
you increase the obligations of the road no
branches will be built, the freight cannot
be reduced and the people of my State will
continue to suffer. On the contrary, if the
Indebtedness of the Central Pacific TO the
Government, which now amounts in round
rrl 70, 4
in building branch lines to be approved by
the Government, in constructing reservoirs
and other works for irrigation along those
branch lines so that people can live there
and there will be some business to sustain
them-if that is done great good will be
accomplished.
am not in favor of appropriating money
from the Treasury to go into any
EXTRAvAGANT SCHEMES OF DEVELOPMENT
OF that new country, but this is excep-
tional. The money has been loaned by
| the Government for great national pur-
pose. ltnever was expected to be returned
IN any way except il Government service.
1t has not been SO returned, but it has
saved the Government all that was ex-
| pected in giving it good mail facilities and
cheapenlng transportation. 1t has saved
more than the debt over and over again.
That having been done and there being
| an obligation on the part OF these roads, as
we assume, to pay the whole of this debt,
both companies appear willing to do it, but
they are not the only parties interested. A
vast country between the Missouri river
and San Francisco is interested Its pros
perity is involved in it, its development is
dependent upon the correct policy to be
pursued.
If this Indebtedness is paid by requiring
the companies to pay every dollar and put
II into new roads that are free from in
cumbrances, and into irrigation works, to
furnish business for the roads they will
be strong enough to pay it, because as the
population increases there will be some
body there to bear the burden, and in that
| way we will be sure 10 get the debt paid.
There will be no defalcation if you let our
enterprising people have place to make
homes and develop our mines and ag.icult-
ural resources; the burdens will then be
| easily borne. The road can pay the debt
TO the Government in way that will add
more to the resources of the country and
relieve the people more of taxation gen.
| orally than any scheme of collecting It in
| ong bonds. We should hardly feel the
little driblets that would go into the Treas
ury in that way, besides every dollar ex-
| acted from the people.
WOULD TEND TO DEPREss BUSINESS
| In that country.
| AS | said before, the railroad land grants
and these money subsidies directly secured
| the construction, in round numbers of 20. :
GOO miles of railroad, and indirectly of as
much more, according to the estimates OF
| the statisticians and persons engaged in
collecting the facts UPON the subject That
is the accomplishment Of q great deal, and
it only involved the expenditure of $55,-
| 10000 on the part of the United States
| and the don alton of land otherwise mac
| cessible
England, in dealing with India, found a
| similar problem to what we have, and that
| Government solved it by direct appropria-
ton, or by Indian bonds Endorsed by the
| Government OF Great Britain. They have
spent during the last thirty years about one
thousand millions OF dollars in railroads,
irrigation works, and other internal i'm.
provements, and they report that so far
| from burdening the treasury it has relieved
the treasury several millions each year. be-
sides the great prosperity it has given that
| country.
We are not in a condition to conduct
business as they do. We have no strong
despotic Government to do that, but we
have made little experiment in invest
ments similar to those made in India. II
is true the Investment we have made is
| small, but the returns have been most sat
isfactory. Our Government appears 10
have lost sight of the
| REAL OBJECTS AND PURPOSES
| For which the money was expended, for
whose benefit 1t was expended. and how
payment was to be made, and Congress
| now is trying to collect the money from
the people along this particular line with
out regard to the injury which such a
! course must intict.
| | will read paragraph from the Finan-
ces and Public Works of India, 1869 1881.
| They have continued since 1881 quite as
vigorously as before in expenditures, par
| ticulsrly with regard TO Expenditures for
irrigation. The extract that | wish TO read
is as follows:
| The magnitude of the work that has been
| accomplished is extraordinary. The England
| of Queen Anne was hardly more differ, Mt from
| the England of to-day than the India of Lord
| Peterborough from the India of Lord Ripou.
| The country has been covered with roads, her
| almost impossible rivers have been bridged,
| 1900 miles of railway and $1,000 miles of tele.
graph lines have been constructed, 100000
| acres OF land have been irrigated, and we have
spent on these works, in little more than twenty
| years, some 1l5o,0o0,0O0
That is about $3.50 900 900. In this work
| also they estimate that the railroads to be
| constructed will amount TO 10000 miles,
| and the amount of land to be irrigated 10
many millions of acres. When they first