The L'Anse sentinel. (L'Anse, L.S., Mich.) 18??-current, 1900-06-09
Pacific Railroad Settlements.


Washington, June 1.-THE settlement OF
the Pacific railroad Indebtedness must be
ranked as one Of the greatest achievements
Of President Mckinley's Administrative
said Gen. Charles Dick, member of con-
gress from the Nineteenth district OF Ohio,
and secretary OF the republican national
IAN efforts either by congress or the
executive departments prior to 1897, were
OF little avail In protecting the govern
ment's interests In these roads. In fact.
there were grave doubts whether the gov
eminent would succeed In being reim-
bursed. even in part, the vast sum expend-
ed by the United States In aid OF their con-
struction. But the government has real
lied In cash or It's equivalent, within two
years. the sum OF sl24 42l.67l out OF about
$3.50, 00O, 0o0 that was due. and more than half
the money collected was for accrued In
terest that had not been paid.
1.-THE discovery of gold in California; the
rapid increase In wealth and population In
the territory west of the Rocky mountains.
and a movement on the part OF the older
states to establish closer connections dur
Ing the civil war with those outlying COM
munities, led congress in 1862 Ito authorize
the construction of a railroad to the Pacific
ocean. The direct benefit to be derived
by the government was Its use for postal,
military and other purposes. The act OF
July l. 1862 charterins the Union Pacific
Railroad company, was not sufnciently I'D
plished under it's provisions. Though the
Union Pacific company was organized no
one was found who would venture money
"On July 2, 1854. congress amended the
act OF 1862 by making provisions more
favorable to the companies. The act OF
have first mortgage on the property OF
the company. while the act of 1854 provided
substantially that, for the bonds the gov
ton, OF the road, 1t should take second
mortgage. Two companies were organized
under the provisions OF the act of 1864,
and entered energeticallv upon the work
~ NJ from
the California end eastward by the Cen
trail Pacific Railroad company and from
the Missouri river westward to the com
mon meeting point at Ogden by the Union
Pacific company. .' -
Their lines were united May 10. 1863,
anticipating by more than seven years 1 pne
cific company constructed l,O3l miles, ana
the Central Pacific 743 miles. The road
extended 40 miles. and the lines of the two
companies from the Missouri river to san
Francisco represented mileage OF l9l1
miles.
'In aid of these roads and connecting
branches the United States issued bonds to
the amount of $64, 623,5l2 Failing TO be
reimbursed for the interest paid on tnese
bonds. 1t became necessary, In protection
of the interests of the government, to pass
the act OF May I, 1878, known as the
Thurman act This act provided that the
whole amount OF compensation which might
from time TO time be due to the railroad
companies for services rendered the gov
eminent should be retained by the govern
ment, one-half to be applied to the liqui-
dalton of the interest paid and to be paid
by the United States upon the bonds issued
to- each of the companies. the other half TO
be turned into sinking fund. But 1t soon
became apparent that, with the approach
ing maturity of bonds issued in aid of the
roads the provisions OF the Thurman act
were not adequate to the protection of the
governments interests. Efforts were per-
sistently made looking to settlement
OF this vast indebtedness, but without sue
= Co a q EIffy-fOllrth com
gress attempt was made to pass bill
to refund the debts OF the Pacific Railroad
companies, but II was defeated in the house
by vote of l67 nays and lO9 yeas.
ION January IL, 1884," continued Gen.
Dick, "the day following the defeat of the
funding bill the attorney general was was
occurred in the payment of the Union Pa
cific and the Kansas Pacific Indebtedness to
the government. and he was directed to
make arrangements to secure, as far as
practicable the payment of their Indebted
ness An agreement was entered into be-
tween the government and the 5eorgani az; a
! road by which the committee guaranteed,
| should the government undertake TO en-
| force its lien by sale, minimum bid for
| the Union and Kansas Pacific lines that
| would produce to tho government, over
| and above any prior liens and charges upon
tho railroads and sinking fund, the net sum
| of S45, 754 O59, 80. In performance OF this
| agreement the bid was guaranteed by a
deposit OF 81, SOC, 600
| Bits were then nled IN the united states
| circuit courts for the foreclosure of the
! government lien. The DEGREES entered
| for the sale of the roads not being salts
factory to. the government, papers were
prepared for an appeal Then the re-
| organization committee came forward with
an offer to increase It's bid to Sooooooo
| instead of $i5, 754, O59. 90. Subsequently to
| settle all points in dispute. the reorganiza-
| ton committee decided to abandon this
second bid and to increase the minimum
| amount to be offered for the property to
| SIS, 44S. rs. being the total amount due
| the government on account of the Union
! Pacific road. as stated by the secretary of
| the treasury, including the sum of 81, 49,
| 3Gs.26 cash in the sinking fund. Such an
amount was bid by the reorganization COM
| mittee on November ], 1897, and the sale
| was confirmed by the court on November 6.
| 1897 After the confirmation of the sale
| tho whole amount was paid into the treas
ury of the United States in convenient In
stallments. thus relieving the government
| from any loss whatever upon it's claim for
| principal and interest due upon its sub
M IN yoyS