Omaha daily bee., 1896-03-08
THE srASroRp DECISION.
Significance of the FtndtnE OF she
Federal supreme Court.

- NAhH
The decision Of the supreme court that tae
Stanford estate Is not responsible for the
debt OF the Pacific railroads to the govern
ment puts an end to one phase Of the contro-
versy to which the government subsidy to
those roads has given rise.
Stripped OF technlcalities, the case IL rather
simple. The government issued bonds to the
amount OF nearly S65. 900. 900 for the construc-
ton OF the Pacific roads, besides most munif-
cent land grants. When the game was over
the government owed the money, with no
s~ecurlty except a second mortgage, of doubt
full value IL Of any, and Stanford and his lead
ing associates had private fortunes of an
equal or greater amount. The government
has paid interest on the bonds, and now the
principal is falling due. and the government
is paying that alao. Various schemes are
proposed to try to secure the government
claim. but none of them is free from objec-
tions, or gives any cheerful promise OF sue
cess.
OF course. this transfer of money from the
treasury to individuals was not made all at
once. The transaction required some years
for lts completion, and many
agencies. such as construction companies.
bribery, lobbying, literary bureaus to deceive
tho people, and all ths intricate and cOmpll-
Gated r~ascality by which private greed wages
successful war against the public treasury.
Tho government had originally a first mort
gage on the roads, which would nave secured
Nv NNbNH hhNA ~ was hh1' e'AhNtA
the government surrendered this mortgage,
and took a second mortgage. the roads could
not be built. By misrepresentation, corrup-
ton and ether agencies the government,
which has already furnished ample means to
build Tho roads, was induced to exchange a
first mortgage for a second. This was a vir-
iual gift of the roads to a few men.
II Is only fair &c say that a part OF the In
terest paid by the United States has been re-
ceived back, mostly in the way of transporta-
tion service. The account for the various
Pacific roads at the beginning Of the present
calendar year was as follows:
in,eres, accrued hut not ye, paid ~, Esq ies.@s
Interest repaid by companies
IN iranspoftation....,......''''.'.,.. E!99S, sls.G9
In l.IS,bl9.to
This leaves a balance of SIS, is5. 1921 Of in
terest not repaid the United States, besides
what is still to accrue. This, with the princi-
pal, gives a total Of $li3, 900, 900, principal
and interest, with more of the latter to fol-
low. 1t is q very striking eXemplifcation Of
the ability of the federal government to con-
duct the railroad business at a profit.
1t is not necessary to discuss the decision
of the supreme court refusing to hold the
estate of Stanford liable for any part of the
great sum which he obtained from the gov
eminent in these transactions. AS a matter
Of law, by which the court must be con-
trolled, the judgment may be perfectly cor
rect. The court assumes that congress was
building the roads and used the different
railroad companies as its instruments. This
may be the way the law views 1t, but 1t
suggests the remarks of Dickens hen-pecked
husband, who, when told that the law re-
garded his wife as under his coercion, SEN
tentiously remarked: "If the law says that,
then the law is an ass" In fact, congress
was the instrument which the builders of the
road employed for transferring money from
the treasury to their own pockets. This was
not done entirely without consideration on
the part Of many members of congress.
Having got the governments money the con-
s%pirators employed go much of it as was
necessary to persuade congress to surrender
its security.
The Pacific railways furnish a long, COM
plicated and most disgraceful chapter Of cur
history, much of which is probably yet to be
written. IL 1t has any moral 1t shows the
utter incompetence Of congress to protect
the interests of the government when 1t goes
into partnership with individuals.