Chapters on the History of the Southern PacificDaggett, Stuart
History
Chapters on the History of the Southern Pacific
Daggett, Stuart
Pacific railroads -- History; Railroads -- California -- History; Southern Pacific Company
It would be possible to lengthen the list of suggestions for the
repayment of the subsidy bonds which were made during the eighties
and the nineties, by including schemes elaborated by other persons
than members of Congress and presented in other ways than through
formal reports of Congressional committees to the legislature. This
will not be done to any great extent because of limitations of time
and space. While, however, the greater part of outside comment upon
various pending refunding bills must be omitted, it is important to
remember that the discussion outside of Congress, especially during the
nineties, was quite as active as that within, and that it was conducted
with great bitterness of feeling and freedom of expression. Indeed, the
extreme contentions on either side are quite inadequately set forth in
the Congressional debates.
Railroad Proposals
The general railroad position with respect to the repayment of the
subsidy bonds was that the entire debt to the government should
be remitted.[559] Failing this, the companies contended that the
government should satisfy its claim by taking back a portion of the
railroad land grant. If the United States should be indisposed to
resume the land grant, then Mr. Stanford suggested that the government
should take up all the liens on the Central Pacific Railroad prior to
the subsidy bonds, and in lieu of them issue government bonds bearing
interest at the rate of 2 per cent. The saving to the company, due
to the reduction in the interest rate on first mortgage bonds from
6 to 2 per cent, would enable it to pay off its indebtedness to the
government, sufficient time being given and a moderate rate of interest
allowed.[560] In case even this settlement were rejected, it was
proposed that the government refund the subsidy bonds by a new issue,
running 100 or 125 years, and bearing interest at the rate of 2 per
cent.[561]
Public-domain text, read in full here on John Shaqi.
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