New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-10-15
RLTNDERING STATESMANSHIP.

Let me relate a sentence or two without wee
risome recital of stale and malodorous political
history, the stages by which the statesmen at
Washington had reached frame OF mind in which
any mention OF Pacific Railroad matters was a
red flag to Il bull In the very beginning. 1t must
be remembered, Congress voted tho loan Of Gov
eminent bonds to the Pacific roads upon care
ful calculation OF the amount the Government was
then paying for its own transportation between
bond issue ordered that one-half the Gov
ernment's transportation account at the then rui-
c per cent BY the charter accordingly the Gov
eminent authorized to apply half its trans
loan When to this added per cent Of the net
earnings. 1t was thought that ample provision had
been made for the interest, and, either careessly
by design the charter was so drawn that under
the subsequent construction Of the Supreme Court
any deficiency In the annual interest was not pay
able until the debt matured Another piece Of
csrelessness that in the light OF history seems al
most inexcusabe was the omission OF an option
to redeem the bonds before maturity. such as was
attached to every other Government Issue. Had
eminent Issues. they could have been refunded at
per cent ten years b ron their iss"e Ths
cost the Union Pacific about million dollars a
year.
portation that half the Government account fen
Considerably, short Of the interest chaIses: Then
has been turning and twisting and trying al sorts
der. The companies would have saved themselves
heaps OF trouble and money If they had suircn-
t.
their chartered rights Ike the firm undaunted
mule, and have been getting the mules reward in
ity ever since. precise analysis OF the Union
Pacific accounts which would show The amount
long quarrel would give some rather astonishing
results ,,,,, u.,,o, con,,r.ss n.aa ,oo,,s
toned TO deal with the subject Is fairly illustrated
by the Thurman act which was passed in 1875 and
flower Of statesmanshp. 1t was the Joint produc-
I ton of Senator Edmunds and the "Old Roman" "
was to establish sinking fund TO be applied to
the payment of the Government loan at maturity.
the subject of interest payments legislation and
litigation. The company was up TO us ears in
The Government had calmly coniscated every dol
lar due the company on account OF transportation
one-half should be applied TO Interest payments
and Congress In IT'S wrath had tied up and tan
was a large annual deficit in intercs; payments
Mr.. Gould was at that time the controlling force
naily at the head They did not go out OF their
way to concliate Congress. but rather increased
In all disputes and so delaying settlements The
Thnrman act was intended as snd secure c ,he 10
eminent loan. 1t is not necessary to cite its pro-
drawn and It's limitations were so strict that the
Treasury was presently buying tne Dohds 10 whicn
cent premium, and the annual income from the in
vesment was from two and half to three per
man. act more apparent an issue at once arose
as TO the construction OF the term met earnings"
and that went into the courts. the company mean
while Withholding interest payments until a judi
cial decision OF the question should be reached.
The statesmen who had fattered themselves they
had reached solution OF the debt question by the
sinking fund provision no doubt mortlhed at
the exhibition they had made OF their utter In
competency. of which every successive report from
the Treasury and Interior Departments was re-
mnder. Instead OF confessng II and making some
attempt to rectify their blunder they de
nounced the railroad managers for contumacy and
contempt OF the powers OF Congress In resorting
TO the courts ana at each session set on root some
new scheme for getting even" Meantime the be-
havior OF the railroad managers was exaeperating
rather than conciliatory, and those highly orna-
mental funcuonaries. the Government Directors
were treated with curtness bordering on disrespect