The record-union., 1896-02-28

a division of the profits arising out of
| the transaction. To have done this
would have involved that other consid-
Grafton, the risk to the Government of
sharing the losses of the Pacific railroad
companies, had such losses been sus-
tanned. This latter consideration brings
clearly to view the true intent and
meaning of the contract. The Govern
ment was not to be a party to any loss
which the Pacific railroads might sus-
| tain, and necessarily was not to be a
! sharer in any profits. If, indeed the
| Pacific railroads had found at the COM
pletion of the lines a very large indebt-
| edness, the people who now oppose the
| funding measure would have declared
| that the risk of profit or loss rested
| solely with the railway companies
parties to that contract, and that the
! Government should not be expected to
share the loss.
The allegation is now made that the
construction of the railroads resulted
in profit to the individuals who owned
the stock and constructed the lines. In
/ its very highest moral aspect, the ques-
tion is pertinent-What of it? If there
had been a loss, as we have already
stated, the Government would have de-
clared that it was not in the slightest
degree responsible, and likewise if there
was a gain in the construction the Gov
ernment was to participate in that gain
In brief, it was contract between two
! parties, the consideration to inure to
each of the parties being clearly de-
fined. AS already stated, on the one
hand, the consideration to the Govern
ment was the closer commercial init
macy between distant parts of the Ma
tlonal domain; and on the other, the
companies were to receive a subsidy of
lands and the loan Of the Governments
credit. If the relative value of the con-
sideraticn inuring to each party is con-
trasted, the Government has lost moth
| ing. The construction of the Pacific
railroads so far contributed to the de-
velopment of the Pacific Coast that the
receipts of the National Treasury from
customs duties arose from $613,000 per
annum in 1860 to over $10,000,000 in
1888. From customs duties alone the
Government has received a sum in ex-
cess of what it would have received had
the roads not been constructed, a larger
amount than the entire subsidy with its
interest To state this in another form.
TdlITOdQ
as an artery of commerce returned di-
| rectly to the treasury by one form of
taxation sum larger than the Govern
ment paid of principal and interest upon
the bonds loaned to these companies.
Other incidental benefits have been
mentioned until they are platitudinous
The settlement of the Indian question,
the carrying of the mails, the value of
the road from it's military and postal
aspect; all these things must be added
to the actual and direct cash receipts
which must be attributed to the con-
struction of the Pacific railroads and to
no other agency. The ocean had ac-
complished all that was possible in the
way of the development of a civilization
here. The full measure of what Cali
fornia, Nevada, Oregon and Washing
ton were to be had been reached and
further progress was arrested until rail
road communication was established
between navigable water on the Allan
tic side and tide-water on the Pacific
Coast. 1t was the accomplishment of
that result which constituted the con-
sideration to accrue to the Government
The time has now arrived when the
credit loaned by the Government must
be repaid, and the Pacific railroads do
not find themselves in position to make
repayment of the loan. They come for
ward to ask an extension of the time,
Offering additional security and interest.
Whatever reasons may he offered in OPP
position to this measure, the profit ac-
cruing to the Pacific railroads is not one
of them. If it may be alleged now as a
sufficient justification for the refusal on
the part of the Government to show the
railroads the clemency of an extension
of time that the contract resulted in
profit to one of the parties, then the
whole ground of the discussion is shift
ed. 1t becomes a question of compara-
tive profit accruing to each party to the
contract. If because some profit
accrued to builders of the road,
the common-sense business con-
sideration underlying the transac-
tion is to be overlooked and to be per-
mitted no weight in the discussion of
the question then the ground is shifted
to that of the relative profit Of the two
parties, and when that issue is tried the
Government will be found to be very
largely the gamer. Those who contend.
therefore, that the mere fact that some
profit Injured to the builders of the Pa
cafc railroads is a sufficient argument
against the expediency Of extending the
time for the payment of the Govern
ment lien, are invoking a new standard
of the determination of the rights of the
parties which might result very disas
trously to the Government. For every
dollar of profit the constructors of the
Pacific railroads can show, the Govern
ment can show so as its profit arising
out of the transaction. If the Govern
ment and the Pacific railroads were
considered partners, then the whole
question is not one of legislation, but
one of expert accounting. If the con-
troversy now waged between the Gov
ernment and the Pacific railroads is
one between partners, then the only
question to be determined is which re-
ceived the largest consideration, the
| Government or the roads? One-half of
the difference. between these two figures
is owing by one party to the other.
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