Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1900-06-06


rotary of the Republican national com
mittee, in Washington the other day.
"All efforts. either BY Congress or the
executive departments prior to 1897, were
of little avail in protecting the Govern
ments interests in these roads. In fact,
there We're grave ionbts whether the
Government woulu succeed in being re-
ilnbursed, even in part, the vast sum ex-
pended by the United States in aid of
their construction But the Government
has realized in cash or its equivalent,
within two years, the sum of S124, 421,-
GIL out of about Sl30,000,000 that was
due, and more than half the money col
lected was for accrued interest that had
not been paid
The discovery of gold in California;
the rapid increase in wealth and popula-
ton in the territory west of the Rocky
Mountains, and a movement on the part
of the older States to establish closer con-
nections during the civil war with those
outlying communities, led Congress in
1867 to autl orize the construction of a
railroad to tie Pacific ocean. The direct
benefit to be derived by the Government
was its us for postal, military and other
purposes. The act of July /, 1862, char
tering the Union Pacific Railroad Com
pany, was not sufficiently liberal, and
therefore nothing was accomplished I'M
der its provisions Though the Union
Pacific Company was or" .nized no one
was found who woul1 .enturc money in
the construction o." ne road.
ION July ., 1864, Congress amended
the act of 1862 by making provisions
more favorable to the companies. The
act of 1862 provided that the Govern
ment should have a first mortgage on The
property of the company. while the act
of 1863 provided substantially that, for
the bonds the Government should issue
in aid of the construction of the road, it
should take a second mortgage. Tv com
panies were organized under the owls
ions of the act of 1864, and entered ener-
getically upon the work Of construction.
| The road was built from the California
end eastward by the Central Pacific
Railroad Company and from the Mis-
souri, river westward to the common
meeting point at Ogden by the Union Pa
| cific Company.
Their lines were united May TO- 1869,
! anticipating by more than seven years
| the time required by Congress. 'The I'm
miles, and the Central Pacific 743 miles.
The road of the latter company was sub
sequently extended 40 miles. and the
lines of the two companies from the Mis-
souri, river to San Francisco represented
a mileage of or miles
I'm aid of these roads and connecting
branches. the United States issued bonds
to the amount of $64 623. 512. Failing to
-. =.
bonds, 1t became necessary, in protection
of the interests of the Government to pass
the act of May T. 1878. known as the Thur
man 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 Govern
ment should be retained by the Govern
| ment, one-half to be applied to the iiqui
| 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 bond issued in aid of the
roads, the provision 81 he Thurman Act
were not adequate the protection of the
Governments interes Efforts were per-
sistently made LOOKING to settlement
of this vast indebtedn ',ut without sue
cess. So recently tho tty-fourth Con
gress an attempt was maue to pass a bill
to refund the debts of the Pacific Rail-
road companies, but ii was defeated In the
House by vote of 167 nays and 102 yeas.
''On Jan. l., 1897 continued Gen. Dick
1.-THE day following the defeat of the fund
ing bill the Attorney General was informed
by the President that sefault had occurred
In the payment of the Union Pacific and the
Kansas Pacific Indebtedness to the Govern
ment, and he was directed to make arrange
mentS to secure, as far as practicable, the
payment VI their Indebtedness. An agree
ment was entered into betweer he Govern
ment and the reorganization mmittee of
the Union Pacific Railroad, by which the
committee guaranteed should the Govern
ment undertake to enforce its lien by sale
minimum bid for the Union ana Kansas
Pacific limos that would produce to the Gov
eminent, over and above any prior liens and
charges upon the railroads and sinking
| fund, the net sum of $40. T54 059.99. In per
| Torrance Of this agreement the bid was
| guaranteed by deposit of 50, SEQ. 900.
| Bills wore then filed 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
offer to increase its bid 10 $4,000 0G0
| Instead OF $40. 754, Oa9 ID Subsequently. to
| StAtit tEA pDiilS III utolfhtSs tue ItpIEuUEZt-
| ton committee decided to abandon this
! second bid and to Increase the minimum
amount to be offered for the property to
| SIS, AS, 223. 20. 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, $40 =
| 30S.26 cast In the sinking fund. Such au
| amount was bid by the reorganization com
mittee on Nov. /, 1897. and the sale was
| confirmed hy the court on Nov 6, 1897. AZ
| ter the confirmation Of the safe. the whole
| amount was paid into the Trt asury of The
| United St8tes in convenient installments,
| thus relieving the Government. from any loss
| whatever upon Its claim for principal and
| interest due upon its subsidy, and bringing
| to final and most satisfactory termination
| one CT these long standing and troublesome
| questions.
In the case Of the Kansas Pacific indebt-
| edness by decree of the court an upset
| price on the sale of the property was fixed
| at a sum which would yield to the Govern
| ment 81. 100000. The reorganization COM
nittee In conference with the Government
| declared its purpose of making no higher
| bid than that fixed By the decree of the
court, so that the Government was confront
| ed with the danger of receiving for its
| total lien upon this line, amounting to
nearly S13,Oo0090. principal and interest
| Only the sum of S2.J0JoU0. Believing the
| Interest Of the Government required that
| an effort should be made TO obtain a larger
sum. aai the Government having the
! right 10 redeem the membranes upon the
property, which we prior to the lien Of
| the Government subsidy. by paying the
! sums lawfully due IA respect thereof out Of
| the Treasury the United States, the
| President, on Feb $ 1895, authorized the
| Secretary IF the Treasury TO pay the
| amounts A.'ully due upon the prior mort