Year: 1869




the mortgages upon it before ours
Railroads do not combine TO save the
money due the Commonwealth, but
to obtain the advantage of II. Their
policy is TO get all they can for them
selves, and when they cannot succeed
in a large operation in any other way
they combine themselves to make the
best bargain possible out of the Com.
monwealth.


We are TO regard this proposition as
business men, and the first inquiry
naturally is, what is our present secu-
rity WORTH The mortgage we hold
is third mortgage upon the Philadcl-
phia and Erie Railroad. Six millions
Of money are prior liens to our debt
The actual condition of the road is
bad, it is struggling for existence, it
does not pay. If it were put up to
public sale, it would no. sell for the
liens that are upon record in advance
of us, and at such sale we would be
compelled to be the purchaser or lose
our debt. We do not wish TO buy the
road, nor do we wish to lose our debt.
As business men, owning such secu-
rity, we would promptly accept an
offer of compromise at fifty per cent.
/ am convinced that the security for
this debt is bad, and it is for us as the
guardians OF the interests Of the State
TO do that which seems advantageous
for her The fault of the actual con-
dition of the debt does not lie at our
door, but is TO be placed where it be-
longs-upon the legislature of 1861.


The bill before us authorizes the
change of those securities and the
substitution of the bonds of the Allie
gheny Valley Railroad Company for
those Of the Philadelphia and Erie
Railroad Company, giving to US
s., 3,500,000 in thirty-fve bonds Of
500, 600 each, commencing to mature
January lst, 1875, with interest at
FIVE per cent, commencing January
LIST, 1872 These bonds are TO be
guaranteed by three railroad compa
nies The Pennsylvania Railroad, the
Northern Central Railroad, and the
Philadelphia and Erie Railroad, thus
making morally certain the payment
of the principal and interest, accord
ing to the terms OF the law.


The offer that comes to us is, VIC
will give you full and perfect security
for your debt, and will commence to
pay it twenty-six years sooner than
VIC are bound to do so, if you will
abate 12l per cent. on the principal
and so reduce the rate of interest
from six per cent. 10 FIVE per cent.


In my opinion there can be but one
answer to this question, that Of prompt
acceptance. Thus much Of this ques-
tion in q business point Of view.


Senators seem TO fear that this mon-
ey may eventually be taken away
from the purpose TO which il is devo.
ted by the Constitution and lost to
tho people. / do not fear such n
result. Neither this legislature nor
any subsequent one has any such
power. If We will not protect the
State and her interests, the Supreme
Court, upon this subject, can and will
control US. We have the power TO
improve the value of the securities
we hold in trust for payment OF the
debt, but we dare not divert them to
any other purpose. We cannot do
what the Constitution forbids, at the
command even of all the railroads in
the State By the acceptance Of this
proposition we secure earlier payment
and make our debt good. Let us give
these companies all OF the aid we can,
consistent with the interests of the
State. We are now annually receiv.
ing sl00, 900 from the Pennsylvania
railroad upon her bonds given in pay.
ment for the main line. Five millions
and half OF these remain unpaid,
and we hear of no attempt to evade
their payment. / regard this in the
light of similar annuity, and ] do not
fear its loss, for we have no power to
throw Il away.


Beyond and beneath this question,
in business view, lies the much
greater question of our true policy rs
legislators, Our geographical posi-
ton makes us the thoroughiare Of ma
tons, and the grand highway from
the commercial marts on the Atlantic
by tho commercial centre of the west
to the commercial marts on the Pacif-
io lies through our borders. The
commerce of the world found upon
the shores of either sea in passing
from one to the other will enrich all
it touches. If We enrich one part OF
the State we benefit the whole, taxa.
ton is lessencd, wealth increased, our
cities prosper and our railways flour
ish. Our true mission is that Of ma
tcrial progress, and in the line of that
mission, free transit and aid to devel.
opments become imperative duties.


In my place here in 1867, and oflcn
before, | said that this route was the
great national thoroughfarc from the
seaboard to the west, and i affirmed
that it was our duty to open the door
and permit its occupation. l then
said:


"Standing upon one of the hills OF
my own county, | can cast stone,
with my left hand, into waters that
fow into the Gulf Of Mexico, and with
my right hand, into those that flow
into the Chesapeake Bay. At that
point the summit between tho East
crn and Western waters can be passed
with gradients not exceeding fifty feet
to the mile, and the valleys Of these
water courses run almost beneath the
line of direct airline route betwoen
New York and the great centre ol
railroads in the west.


Here lies the great natural thor
oughfare from the seaboard TO the
West. In advocating its adoption,
am actuated by what / believe TO be
the simplest principle in our ordinary
affairs. II is that which dictates tc
our common sense the selection Of the
most direct means for tho end Of the
l atta;,rnont dcsirod Haro ara the