Cameron County press. [volume] (Emporium, Cameron County, Pa.) 1866-1922, 1900-06-14

the Pacific railroad Indebtedness must be
ranked as one of the greatest achievements
OF President McKinley's administration. -
said Gen. Charles Dick, member of CON
gress from the Nineteenth district of Ohio,
and secretary of the republican national
committee, to-day:
"AlI efforts either by congress or the
executive departments prior to 1897, We're
of little avail in protecting the govern
ment's interests in these roads. IN fact,
there were grave doubts whether the gov
ernment would succeed in being relm-
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 SPA, l,61 out of about
$3.50, 600 900 that was due, and more than half
the money collected was for accrued in
terest that had not been paid.
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 1867 ito duthorlZe
the construction of Il 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 /, 1862, chartering the Union Pacific
Railroad company, was not sufficiently lih-
oral, and therefore nothing was accom-
plished under its provisions. Though the
Union Pacific company was organized no
one was found who would venture money
in the construction of the road.
j =,
act of 1862, by making provisions more
favorable to the companies. The act of
1862 provided that the government should
have first mortgage on the property, OF
the company, while the act of 1854 provided
substantially that, for the bonds the gov
crnment should issue in aid of the conStruc-
ton Of the road, it should take second
mortgage. Two companies were organized
under the provisions of the act OF 1864,
and entered energetically upon the work
Of construction. The road was built from
gga.. 10. sfyN.sy 4 NJ
trail Pacific Railroad company and from
the Missouri river westward to the com
mon meeting point at Ogden by the Union
Their lines were united May TO- 1869,
anticipating by more than seven years the
time required by congress. Union Pa
cinc company constructed 1904 miles, and
the Central Pacific 743 miles. The road
of the latter company was subsequently
extended l40 miles. and the lines of the two
companies from the Missouri river to san
Francisco represented mileage OF I,SI'
miles.
I'm aid of these roads and connecting
branches the United states issued bonds 70
the amount of S6i,623,5l2 Failing TO be
reimbursed for the interest paid on these
bonds, it became necessary, in protection
of the interests OF the government, to pass
the act of May :, 1873, 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
ernment should be retained by the govern
ment one-half to be applied to the liqui-
dation of the interest paid and to be paid
by the United States upon the bonds ISSUED
TO. each of the companies, the other half 10
be turned into a sinking fund. But Il 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 a settlement
of this vast indebtedness, but without sue
cess. 50 recently as the Fitty-fourth con
gress an attempt was made 10 pass bill
10 refund the debts of the Pacific Railroad
companies but it was defeated in the house
by vote of 1G7 rays and lO2 yeas.
"Gn January y; lSSL. continued Sen. .,i.
funding bill, the attorney general was
informed by the president that default had
occurred in the payment of the Union Pa
Cific and the Kansas Pacific Indebtedness tC
the government, and he was directed tc
make arrangements to secure, as far as
practicable, the payment of their indebted
ness. An agreement was entered into he
tween the government and the reorganiza-
ton committee of the Union Pacific rail
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 the government, over
and above any prior liens and charges upon
the railroads and sinking fund. the net sum
of $i5.75i, G59.99. In performance OF TINS
agreement the bid was guaranteed by a
deposit of $4,000, 900
Bills were then filed in the United States
circuit courts for the foreclosure OF the
government lien. The decrecs 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 its bid to $500 ,O0C
instead of Sf5. .754. go Subsequently, &c
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 &c
| SIS. AS, ,22G. 75 being the total amount due
| the government on account of the tniOr
Pacific road, as stated by the secretary Ol
| the treasury, including the sum of Si,5l9,'
| 26S 26 cash in the sinking fund. Such al
amount was bid by the reorganization com.
mittee on November l, 1897, and the sale
! was confirmed by the court on November 6
| 1897. After the confirmation Of the sale
| the whole amount was paid into the treas
| ury of the United States in convenient in.
| stalments, thus relieving the government
| from any loss whatever upon its claim fOl
| principal and interest due upon its sub
D,y1 he T.Sf M