Year: 1873

S1efV may oc III this failTOau prOoleHa,


Again, cheap freights and fares can
hot be promoted by such warfare as


PUBPosELT CRIPPLEs RAILRAoDs,


or adds needlessly greater burdens to
those they now sustain. 1t is a mistor-
tune that some powerful influences which
profess great zeal to reduce railroad
charges, are very active in devising modes
to make the maintenance of railroads ex-
pensive. Any one can recall instances
of this Inconsistent policy. / will briefly
refer to one such instance. In the last
Congress a question arose as to whether
the Union and Central Pacific railroads
should pay the interest that had accrued
on their bonds issued by the Government,
and the interest hereafter as it falls due,
or whether under the terms of the contract
the Government was to pay this interest
until the maturity of the bonds, when
principal and interest is to be repaid by
the companies, one half the compensation
for transportation done for the United
States, however, to be applied, as it is
earned, on the interest. The amount of
bonds issued the Government to the Cen
trail Pacific Railroad Company was S25,-
S5S120, the annual interest on which j.
one and half millions. Upto this time
III, company has paid one-half ci the
transportation money on the interest ::
bat there remains due for hack interest.
which Che Government hes paid, S6.4l9,-
1872. To a California representative, de-
sirK,g cheap freights and fares, and the
welfare of the Sf..re, the question was a
inomcntous one--Shal the matter be so
decided that, except for one-half the trans
portation money, this great sum shall be
paid by all the people of the United
States payment easily made by tax
of ten cents per gallon on whisky or shall
it be paid by the people of California
alone? Ii TO The annual expenses of the
railroad for the next twenty-five years
Sl,500,0C0 are to be added, that sum must
e paid oct of the proceeds OF the road.
The interest on the S6,419,892 must also
he annually paid bringing up the addi-
tlonal yearly cost of maintaining the road
IN the future nearly $1,000, ,000 To meet
the payment, that amount of money must
be annually exported from the State
Does any one suppose that this will not
tighten the pressure on our money mar
ket? that the interests of the State will
not suffer that it would disastrously af-
feet only few railroad directors I? On
the Union Pacific the additional burden
would be about 81, 100000 more. Instead
of hoping for any reduction of freights
and fares, the prospect, with such added
burdens, would be, at least, their mainte-
nance at present rates, but probably an
increase. No advantage would be gained
by forcing the present companies into
bankruptcy by such means, for the rail-
road would either stop running, or any
new company taking it would have to do
go with this added burden upon it. In
any event the people of this State would
be great sufferers. Therefore, as


QUESTION OF STATE POLICY,


to save an injurious burden being laid
upon the industrial interests of the State,
some of our representatives contcnded
against the new construction of the lia-
biilies Of these companies. For so doing
they were roundly abused by the news
paper guardians Of the people, who olamor
for lower fares and freights, and for every
expense and injury to those who are to
furnish them, which may tend to make
compliance with the demand impossible.
L looked in vain at the time for any state
msnt in those papers as to the effect of an
addition OF four millions annually to the
expenses of the Pacific Railroad ; for any
expression Of fear that such an added
burden woul keep up por enhance railroad
charges for any statement of the law
which had to be construed under oath );
for any recognition of an honest motive
on the part Of those who were striving to
"Neis the iall VI tills gIeat ioau upon Ine
people ; for any admission that when the
Legislature considered the subject of re-
ducing the railroad charges it would have
to allow margin to cover two millions
moro OF necessary expenses per annum.
! only learned from such sources that
yonr representatives were


DESTITUTE OF HONOR AND STATESMAN


SHIP,


because, instead OF trying to avert, they
d,dadvocatc this imposition.


However desirable for the State that the
forty millions Of the United States should
bear the burden OF this interest until the
maturity of the bonds, instead of this
State only, the duty of your Representa-
tlves would not allow them to so vote
unless in accordance with a reasonable
construction OF the laws originating the
railroad companies. BY the original rail
road act of 1862 it was provided that the
United States should issue its own bonds
to certain amount, to run for thirty
years, and meanwhile for whatever trans
portation the companies should do for the
Government the compensation should be
applied on the interest. In 1868 Congress S
provided that but onc-half the transpor-
tation money should be so applied. BY
plain legal intenGment these statutes mean
that any interest money over and above
one half the transportation money shall
be paid by the Government until the ma
turity of the bonds, as its aid toward the
road. 1t was loan of its bonds to that
extent not an Endorsement of the bonds
of the companies. if there is any doubt
about the construction of these laws, ought
not your Representatives to give the bene-
fit of that doubt to their own State p
Down to 1869 the Government had no
doubt imam If an1 hold an1 ooto1 ov Tho
theory have vindicated when the Sec
retary Of the Treasury raised the question
for the first time by Withholding all trans
portation money to apply on the interest.
The matter being submitted to Congress
that body, after debate in each House,
construed the law as | construe it, and
ordered the Secretary to refund one half
of the monies to the companies. In the
last Congress, when the Credit Mobilier
excitement had carried nearly every one
off his feet, and made it dangerous even
to do right by railroad companies, the
matter was revived and the question was
presented, not merely of the retention OF
the costs of transportation done for the
Government, but the enforcement of the
payment Of all past interest and all that
accrues. Under this state Of the law and
the facts, and the vital interests of this
State in question, it may we'll be left to
those having regard to our domestic well
fare, what verdict should be passed on the
altitude assumed by your Representatives
In the Lover House of Congress. Were
It necessary might add to this that by
reference TO a sp Hech made by one of those
Representatives ia 1862 in Congress, on
The Pacific Railroad b,ll then pending, he
showed by table Of fgu.cs the amount
OF interest that the general Government
10 oli H..