Year: 1875

payment The company for obvious reasons might
ne very willing 10 accept the bonds OF the gov.
eIhment on these terms. and might be very I'M
wnhns to come under absolute promise 10 pay
we current interest as il accrued II the company
cse Nheh ali It's available necessary for the
Paosecu',on s Of the work the burden might be very
eaNy congress did not ht to impose this burden
~ ~ Pu' Tue company IN position 10


., ~ !, RISK THE FORFEITURE


T infer that copyress nnss besides - Is fair 70


l ,9nuete ,L' oy the road to the government would
esonah 'ne interest TO be PAID and that


me published statistics OF the vast cost OF transport
nv .ary ana naval stores to the Pacific by the an
clent method ahundantly shows Local business
as source OF profit could not IL exnecIed
anu whethcr, when considered as an investment
u would prove valuable was question far Tina tn ID
termine. But vast the work was tbe orovtno wants
OF the country, MS well as the existing mtarv neces
sity OF the government, demanded that it should be
ations Congress acted II did not act for he hcncat r
private persons but Tor object deemed 10 tho
security OF the country well 10 the prosnertv of
the country compelled II TO incornot ate nri
yate company TO accomplish the object Ii pronered
the terms on which II would lend ITS aid which II
deemed too liberal now, were then considered with
the lights before II not too liberal for
the purpose OF engaging tho attention
OF entcrprsing men, who, II not themselves CAPITALISTS
were IN a position to command the OF capital
These terms locked TO ultimate security rather than to
immediate REIN pursement and for the obvious reason
that the corporation would require all its available means
for construction and that to exact obligation keep
down the interest would tend cripple the enterprise





advance IT, In addition to all that has been said there
enough in tho scheme OF the act and in The pur.
pose contemplated by IL to show that Con.
gress never intended TO impose the
pany the obligation to pay current interest
The act passed In the midst OF war, when the
public mind alive TO the necessity of binding the
Pacific States to those OF the Atlantic Confesscdy the
undertaking was outside OF the ability Of private
capital, and only by the helping hand Of Congress
could the problem difficult of solution under the most
favorable circumstances, be worked out Notwith
standing the


FAVORABLE OFFERED


the road angulshed, and the effect OF that the
amended act Of 1854 BY that the grant OF land was
doubled, the government lien made a second in
stead OF first mortgage and provision inserted
that only oneha OF the amount due by the
for transportation should be required to be applied
government in aid of the construction of the road.
This amendment without doubt intended merely to
modify the provisions of the original act so as 10 allow
the government to retain only half OF the compensation
due for services rendered, instead of all OF
IT, though the provision is that the com
pensation shall be applied TO the payment
OF bonds while in the former act II applies it to bonds
and interest Yet cannot be supposed that Congress
intended to relinquish the right OF the government in
tho former act. The change very material one
and intended as favor, but on the principle endcd
for in behalf of the government II would be of no
value Oi what possible advantage could II be to this
company to receive OF half of the compensa.
ton due to IL for services TO the government, IL 1t
were subjected 10 suit TO 1t back as
soon IT paid and this is the effect of the pro-
vision, on the theory that the company debtor
the government on every semi-annual payment