Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-01-03

am quite sure that the Government can
get all the money it needs at two per cent,
and l cannot believe that any one would
wish to have the Government speculate out
OF this company after it (the Government)
has made so much by its use'
Are you quite sure the Government
could float two per cent bond at par?n
Il am. Atleast l have promised the
committee that has this matter before
them that if the Government will issue two
per cent. bonds, letting them be used by
the banks as collateral for national cur
fency, We will return them the par value
OF such bonds; for, if we cannot sell them
at par, we will ourselves make up the de-
fieiency"
WHAT THE GOVERNMENT EXPECTED.
But you believe, don't you. that the
Government expected. when the aid was
granted, that the debts would be paid at
maturity?"
No, do not; and 1 am qcite sure that
all the debates in Congress at the time
clearly show that they did not expect 10 get
any returns from those roads other than
hve per cent. upon the net earnings. and
one-haIf OF the compensation for whatever
service the railroad did for the Govern
ment. Then all railroad material and la
Der advanced more than a hundred per
cent between the passage of the Act and
the time The road was built which of
course made the Central Pacific cost more
than twice what We expected. Moreover,
congress didn't expect that another road
would be built across the continent before
the bonds that it advanced to the Central
and Union Pacific Railroad Companies
were due. And few thought that those
roads would ever be built. l certainly did
not think the Government would grant
greater aid to a road that was to run lust
south of US viz: the Atlantcand Pacific,
and one just north of us-viz: the North
ern Pacific, and that, too, when railroad
material was cheaper by one-balf than it
was when the Central Pacific was con.
structed. But the Government did if by
granting to each of those companies lands
that were worth more than the lands given
to either the Central or the Union Pacific
and the bonds that were loaned to those
companies; and that, too, when the Gov
eminent must have known that the build
ing of the other roads would make it i'm
possible for the Central Pacific TO pay its
debt at maturity, as the road was built
through dry, unproductive country; so
much so, that it had to depend largely upon
It's through business, and this business was
very much impaired, not only by the roads
north and south, but by the cutting of rates
to such an extent as to compel all the roads
for time to do business at less than actual
cost"
DIG AT THE BILLS OPPONENTS.
!" You think, then, that the bill intro
Guced by Senator Mitchell will pass? n
9 Yes, think 1t will if it is understood,
as 1t provides for paving the Government
all the money it has advanced and all the
interest. That being so, l think it will
pass by a large majority. There will of
course be some directors, for there are
some men in Congress who are like the
boy who whistled in school. When
brought up for it he said he didn't whistle
that it just whistled itself So these few
members have objected to things so long
that their tongues act before their brains do
| and they object to everything except some
appropriation bill that is going to spend
money in their particular districts. Such
a measure they are always in favor of, and
the more useless and extravagant the So
called Improvements are the more they
are for it. But should hardly think that
even they will vote against bill that paws
the Government all the principal that the
road owes and as much interest as the
Government would have to pay, especially
as all the money, it will be remembered,
has to come from the people who use the
road and who live in that sparsely settled
far West and can i'll afford to pay profit
to the Government, as they would have to
do If they paid more than is called for BY
the Mitchell bill. "-NeW York Herald.