Year: 1870

To he Editors Of The Boston Daily Journal.
Holders of the securities of the Union Pacific
Railroad and others TO which advances Of Government
bonds have been made have had the value Of their prop
erty materially changed within few days by alleged
demands OF the Government upon the officers OF the
road and by imputatlons OF default In the payment OF
interest upon such Government bonds ~ there has been


default the hodeD OF securities must take the
quences though they entirely innocent parties
but such change In the value OF property. very
largely held by trustees and others having control
the Of the road ought not 10 be fos
tered or promoted by the press, except upon absolute
certainty.


only default In the opinion and belief OF Its officers
but in the opinion of most eminent counsel hardly
the officers OF the road even to expect claim from the
Government upon them TO do than the Government


itself viz the withholding Of half the price Of Gov
ernment transportation, and applying the same toward
reimbursement for bonds granted to the road.


The confusion which exists In the public mind is due TO
the fact that the Government has granted bonds TO these
promise to pay money and interest to whoever holds


them They were granted TO the road 10 aid in Its
ditOns there is not that implies that the roads
dertook all the conditions OF the bond itself The bonds
reimbuI are contained in the act whereby they
were granted and cannot De contained elsewhere:


lien upon the road and Its appurtenances and not any
mortgage executed BY the road, containing other and
toward the Government arises from their acceptance Of
the franchise, the land and the bonds upon certain
OltlOnb COntdlneu III inc HCt OF dCtS


The conditions as 10 payment contained In one
section OF the original act and section Of amend
ment thereto. The first one In the original, which
mains unchanged, obges the roads pay the Govern
ment bonds at Ddtuythat is at the expiration OF 80
years from their date. No denies the gatiOp and
no default can be possible until such maturity The
second obligation s that the roads shah do the Govern
ment business at fair rates This has been fully complied
WITH and there can be no question that the Government
has, by the OF the roads, saved far than the
interest upon all the bonds granted which possibility of
saving OF the chief reasons for the grant itself


The next condition Is the only one ~ which the pay
ment OF the interest upon the Government bonds Is n
posed upon the roads at ALL and prescrbes the
Of such payment in the following terms All compcn-
sauon for services rendered fog the Government shall
be applied 10 the payment of sid bonds and interest
until the amount is fully paid" This clause altered
III the amendment so as 10 provide that only
0ne-half the compensation should be 50 applied"


The last condition H. that after the road should be
peted until the bonds and Interest fully paid at
least centn OF the net receipts should be applied
to suoh payment but the Union Pacific at least, has
not been accepted finished demand has been made
under this condition. and when IL is 1t will De met


That was the Intention Of the trainers o the law 10
limit the obligations OF the Company To annual appl
cation VI oDoba the charge for Government tausDvra