Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1893-12-31
rnE rAcIrIc nAIlnoAD.

The report Of Cen. Wade Hampton
commissioner OF railroads, discusses at
length the condition of the government
aided railroads mud mir ur. " relo'
lou to tie government Fnm % lisior''
ca. outline we gather on aannat Of the
transaction, Of the COVER 'acIy '''l these
roads
The original Pacific railroad act was
approved In 1862, but as 10 was NOT
thought To- b, lhorll cH mo- ru was
construe.il under H. i, ia "a mn
amendment was approved, doubling the
and grant, which gave 1850 acrcs Of
nd for each mile Of road built and thc
lpanics were authorized 10 issue fret
tgage bonds Of even tenor, date and
a. Of the subsidy bonds. the lien
OF Tie government being thereby suborli
nate and becoming a second mortgage II
was under this ae that the roads were
bhit and bonds issued by the United
States IN aid Of construction,
These grants werc made upon the cone
didon that che companies should pay the
bombs at maturity shoild keep their
railroads and telegraph lurs 10 repair
and use. and az all tluy4 transmit dis
patches and transport mails, troops, mn.
nitions Of war, supplies and public stores
for the government. and that thc govern
ment should at all timea have pref.
creuce In the use Of the roads for all
the purposes specified, "at fair aud rea-
sonablc rates of compensation. not TO ox-
coed the amounts paid by private per-
ties for the same kind Of service
onehalf the compensation for transpor-
tatlon service 10 be retained by the gov.
ernmeut and applied to the payment "
the bonds and interest until Tie whole
amount should have been paid, aud In
addition the companies were to pay annu.
ally . per cent OF their net earnings.
After the roads had been In operation
about ten years It was found that the
amounts annually received from these
companies were not enough to reim-
huise the eovcrnmen, for the Interest on
the suhsidy bonds, which was being paid
by the government, so that The debt was
growing. This led to the Thurman act,
by power Of which the government rr-
tains all instead Of half OF tho compcusa.
ton for transportation OF troops, supplies
and malls, which Is put to the credi, Of
the railroads
On the lat of June. last, the amount
due 10 the United States Tor bonds and
interest was Si62,Ot0,Tl2.GG. Against
this was credit Of $t7.2T1.42in3, leav.
ing net debt OF S115.3lS. 2SI.T3.
The commissioner recommends the an,
pointment Of q commission to SETH the
government debt Of the bond.aided Pa.
eihe rnllroads. He says that "as the
government holds only second mort.
gage on these roads, IN orler 10 secure
possession Of them al prior liens would
have to be paid, and this Involves no,
only the enormous outlay Of say $3.50.
100000, but would entail The necessity
of their operation by the government
This Recommendation Is now. however
not pertinent as 10 the Union Pacific
which Is in the hands Of receivers, Inc
government being represented By tire,
OF 1--WE sudi officials. who should be ali,
to care for its Interests
SUN is the history and the pre,en, con
diion Of government interference In nj
ynse business by lending he crodi, 1,
rallroad speculatori. The erlerienc
Ought TO be enoash 70 last loas dine