The record-union., 1891-03-11

RIVERS lne OONerninenU DaQ DeGn paying
81 $50, 900, are now carried the whole dis
tance for less than one-half the price..in
less than one-quarter the time, and in
probably five hundred times the guam
tity. In all the companies transactions
with the Government with reference to
the construction OF these roads, they have
fulfilled every object of the statutes under
which.the roads were built.
THE GOVERNMENT VOLUNTARILY WEAK
EMS IT'S OWN SECURITY.
But before the road was completed the
Government donated land to the North
ern Pacific of very much greater value
being much better in quality and double
the quantity-than the lands granted to
the Central Pacific and the bonds given
to aid in the work. l had no interest in
the Northern Pacific. but it was beyond
any doubt wise thing for the sovereign
power to do, as it opened up and policed
very large extent of country that could
have been in no way SO economically
cared for. At the same time, the Govern
ment must have known that it was taking
away considerable portion of the Sc
curity that it had for the advances made
to the pioneer line.
About this time, or a little later, the
Government made another grant of land.
as valuable as the Northern Pacific's, to
another railroad-the Atlantic and Pa
citic-running Immediately south of the
NeiltTdl IiclIlc line. III CONG JnlS no
doubt it was governed by the same rea-
sons that induced the grant to the North
ern Pacific; but the Government must
also have known that the doing of it,
while beneficial to the country as whole,
since it opened up and protected that vast
area OF high, dry land in the center of the
continent, yet tended to still further re-
duce the value of the security it held for
advances to the pioneer line.
Later still, the Congress of the United
States passed the interstate commerce
Act, which may have benefited some one,
although / have not been able to learn
what people or territory has i'll the least
been benefited by it; but it has destroyed
the ability of the overland companies to
compete with the Canadian Pacific, as the
latter company is in no wise controlled
by the Act, and its road was built by the
help Of subsidies from the Canadian and
home governments, which have made it
possible for that company to make very
low rates, SO low that we cannot compete
with them, for the law does not allow us
| to figure, as we should, simply OH train
expenses, doing the business OF Il small
proIit over these expenses, as it would
| force all other rates down to these mini
| mum rates that we had made to meet
Canadian competition, and, as every rail-
road man knows, that would soon run
| the companies into bankruptcy.
a CONSTANT FIGHT AGAINST THE ELE-
| MENTs.
| wish to say here to every member of
Congress that ! believe no set of men in
| this country, or any other, have done so
much in opening up their country as the
builders of the Central Pacific, for we
have built roads across desert plains,
over three ranges of mountains, at inn
mensa expenditure in the original cost.
and over lines probably the most difficult
to keep open OF any lines in the world.
| Many portions OF the road lie in regions
| where no seasOnable rains occur, but
where cloud-burStS strike the road in the
most unloohed-for places and destroy it.
On other portions the road is exposed to
! the most fearful SnOW-StornS every year
that are known anywhere in the whole
country. Despite these almost insur-
mountable objections the projectors of the
| Central Pacific have kept the road open,
without regard to the expenses incurred,
SO as to accommodate the Government
and also the people who live along the
| line.
Among other works that we have done
should be mentioned the Southern line,
traversing that dry and, much of the
way, desert country lying just north of
| the Mexican border and running almost
| to the mouth of the Rio Grande, on the
Gulf Of Mexico, which has made it pos
sible for the Government to police that
country also, protecting the settlers
against the ComancheS, ApacheS and other
Wild Indian tribes; and, in short, to make
it possible to hold in check the turbu-
lent elements along the Mexican line,
and at the same time to assist our sister
republic to Il very considerable extent in
doing the same on her side of the border
| Now, after working for many years-in
! the main, | Will admit, for our own per-
sonal benefit gives us much satisfac-
ton to know that our work has, while re-
bounding to our own advantage, i'm
| mensely benefited the whole country as
well as the people living along the lines
OF our improvements.
THE BONDS NEARLY DUE-THE GOVERN
MENT's POSITION.
The time is approaching when the
| bonds advanced by the Government will
become due The non-payment of these
will, of course, make it possible for the
! Government to take possession. by pay
| ing the first mortgage bonds, of that part
of the Central Pacific Railroad aided by
it and lying between Ogden and San
Jose; but | hardly believe that such a
course on the part of the Government
would be for its interest, as a road could
! be completed in this age of abundant labor
and cheap material at 4 much less cost
| than the amount of the first mortgage and
! the Government lien; nor can | believe
| that it would desire to take possession
even ii it was for its interest to do So as
| it would disturb vested interests which
are to a certain extent connected with the
above piece of road, and do injustice to
| the individuals who built the road IT
has been said by some parties that a COM
pany that is not able TO pay 4 bond at ma
/ turity is bankrupt. That may be so. but
j | think none of the great railroads of this
country have to any considerable extent
| paid of their first mortgage bonds except
| by the issue of new ones by which to pay
1 fn,. and :,
! ties OF the oldest and ablest roads in the
country viii show that their mortgages
| to-day are much larger than thew We're on
the day of their completion.
L think the case Of the Central Pacific
will prove no exception. Bonds must be
issued to pay bonds. and the most we can
| nope 10 gam Is reduction Of the inter-
est. Many companies are now issuing
| bonds to run loo years, and the bonds Of
one company, the West Shore which are
very popular, have been issued to run 476
years. There are at present before Con-
gress bills that have been drawn to meet
| these circumstances. or conditions but
which we think, considering all that the
road has done i'll the direct interest of de-
veloping the country west of the Missis-
sippl, bear too heavily upon its resources
and earning power. Yet for the sake of
a final settlement of these much dis
cussed questions the company Will accept
a bill giving an extension equal To some
thing less than forty-four years
WHAT THE COMPANIES WILL AGREE
TO DO.
| What, then, does the proposed legisla-
| ton do? 1t brings back TO the Treasury
of the United States all the advances made
| by the Government to the Pacific roads.
and it gives to the Government in addi
ton larger interest on the money than
the Government itself would have to nav
! if it went into the market to borrow. The