The story of the first trans-continental railroad : $b its projectors, construction, and historyBailey, William Francis
History
The story of the first trans-continental railroad : $b its projectors, construction, and history
Bailey, William Francis
Railroads -- United States -- History; Union Pacific Railroad Company
In 1870 the question of repayment of the Government Loans made in the
shape of Bonds arose,--more particularly that of the interests
accruing thereon,--the bonds themselves not falling due until
1895-1899. It was a question whether the lines were to pay this
interest in cash or through services rendered in transporting men,
materials, and mails for the Government. The matter soon got into the
Courts and their decision as rendered by Justice Davis of the Supreme
Court of the United States so fully and explicitly covers the ground
as to warrant the somewhat lengthy extracts given below:
In his opinion, Judge Davis said, "This enterprise (the building of
the Pacific Railroads) was viewed as a national undertaking for
national purposes and the public mind was directed to the end rather
than the particular means to be employed for the purpose. Although the
road was a military necessity, there were other reasons active at the
time in producing an opinion as to its necessity besides the
protection of our exposed frontiers. There was a vast unpeopled
territory between the Missouri River and Sacramento which was
practically worthless without the facilities afforded by a railroad
for the transportation of persons and property. With its construction
the agricultural and mineral resources could be developed, settlements
made, and the wealth and power of the United States essentially
increased. And then there was also the pressing want in times of peace
even of an improved and cheaper method for the transportation of the
mails and supplies for the army and the Indians."
The policy of the country, to say nothing of the supposed want of
power, stood in the way of the United States taking the work into its
own hands. Even if this were not so, reasons of economy suggested it
were better to enlist private capital and individual enterprise in the
project. This Congress undertook to do, and the inducements held out
were such as it was believed would procure the requisite capital and
enterprise. But the purpose in presenting these inducements was to
promote the construction and operation of a work deemed essential to
the security of great public interests. Besides it is fair to infer
that Congress supposed that the services to be rendered by the road to
the Government would equal the interest to be paid. Congress well knew
that the Government bound itself to pay interest every six months and
the principal at the time the bond matured, resting satisfied with
the entire property of the Company as security for the ultimate
payment of the principal and interest.
Public-domain text, read in full here on John Shaqi.
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