PACIFIC RAILROAD LINES. SPEECH OF HON. J. B. CHAFFEE *» OF COLORADO, IN THE UNITED STATES SENATE, NOVEMBER 13, 1877, W^SIiHSTGTON. 1877, SPEECH OF HON. J. B. CHAFFEE. Mr. CHAFFEE. If there is no other morning business, I desire to call up the resolution I offered a few days ago. The VICE-PRESIDENT. The resolution will he reported for the information of the Senate. The Chief Clerk read the following resolution, submitted by Mr. Chaffee on the 8th instant: Whereas Congress did provide in the act of July 1, 1862, being an act entitled "An act to aid in the construction of a railroad and telegraph line from the Mis¬ souri River to the Pacific Ocean, and to secure to the G-overnment the use of the same for postal, militaiy, and other purposes ;" and also by the subsequent acts of July 2, 1864, March 3, 1869, and June 20, 1874, amendatory thereof, that " said rail¬ road and branches should be operated and used for all purposes of communication, travel, and transportation, so far as the public and Government are concerned, as one connected, continuous line without any discrimination of any kind in favor of the business of any or either of said companies, or adverse to the road or business of any or either of the others; " and upon such basis and contract with the said railroad company and its branches did grant to the Union Pacific Railroad Company and branch companies large subsidies in bonds and lands of the United States, all for the purpose of aiding in the construction of said roads to be operated as aforesaid ; And whereas thesaid Union Pacific Railroad Company and its branch companies, being the Kansas Pacific Company, the Denver Pacific Company, the Central Pa¬ cific of California, the Burlington and Missouri River Company, and the Sioux City Branch, have heretofore neglected and still do neglect ffeid refuse to operate their roads in accordance with said acts of Congress, but have heretofore operated and still do operate them in open violation of the same ; And whereas by reason of said defaults, and onaccount of the same, the Govern¬ ment of the United States and the public have been and still are being damaged and deprived of their just and lawful rights and privileges, as stipulated, defined, and agreed upon in said acts aforesaid: Therefore, Be it resolved, That the President of the United States be, and he is hereby, re¬ quested to inform the Senate what legal impediments, if any, exist which prevent him from executing said laws in accordance with the obligations accepted and agreements made by said Union Pacific Railroad Company and branches with the United States, as stipulated and agreed upon in the several acts aforesaid. Mr. CHAFFEE. Mr. President, I venture to ask the attention of the Senate to the subject-matter of this resolution thus early in the session, because the long-continued failure and refusal of some of these companies to operate their roads according to the compact and agreements made in the acts of incorporation work a continual and almost incalculable damage and loss to the people and the Government. In my judgment it works a greater hardship than would be entailed by the entire loss of all the bonds loaned to the several companies, the ultimate payment of which the honorable Senator from Ohio [Mr. Thukman ] is so anxious to secure. In dealing with these corpora¬ tions we are not circumscribed by the vague boundaries which hedge an implied power, but our right of supervision is given by the same acts which called them into existence. The law under which these com- 4 parries were incorporated requires that the main line and branches shall be operated as one connected, continuous line of railway; that the main line shall not grow rich at the expense of the branches; that one part of the road shall not be used to the injury of another part, but that the main line and branches shall be the common recipients of popular favor, and shall enjoy the benefits which spring from an untrammeled and unrestricted trade. This, I assert, was the object sought to be reached by the several acts of Congress under which these various companies entered upon the construction of the main line and branches, and only because it was believed that the main line and branches would be thus operated did Congress venture to make the immense subsidy and munificent grants whereby some of these companies have been enriched and their roads constructed. The relation between the Government and the great railway system of the country is a subject which must soon engage the serious con¬ sideration of Congress. The system of railroads has been so rapidly enlarged in the last few years that all former means of transporta¬ tion have been completely revolutionized. The annual tonnage of four trunk lines reaching from the Atlantic seaboard to the Missis¬ sippi and Missouri River Valleys is double that of all the inland water lines of communication in the country. A commerce so vast, in the control of a few men, bodes no good to the producers and con¬ sumers, who depend on these lines of transportation to carry what the one class sells and the other buys. A day or two ago the follow¬ ing notice fell under my observation: "The railroad alliance!" "A giant freight combination made and to be maintained!" "Annihila¬ tion decreed against any road that traitorously cuts under." Now, Mr. President, what does this announcement mean? It means that four men or more controlling these four great trunk lines of railway have the power to mark up or mark down the price of wheat, corn, or other products of the thousands and millions of farmers in the great West, exactly to suit their avarice or pleasure. The consequence is that after the farmers have taken the risks of drought, of grass¬ hoppers, and the many other chances incident to raising good crops, if they succeed, as haS^heen generally the fact this year, they have then to depend entirely upon the will of less than a half dozen men, who control the means of transporting their crops to market, as to the price they are to receive, or whether they can be transported at all without loss to the producer. The uncertainty attendant upon transportation is one of the causes of the great depression in the West. But, Mr. President, I do not intend at this time to enter upon a general discussion of the railroad situation. I simply desire to invite the attention of the Senate and the country to the manner in which the laws of Congress are set aside and ignored by the Union Pacific Railroad Company; and, further, to ascertain what remedy, if any, exists for the abuses growing out of these violations of laws. The investigations touching the maimer of constructing this road disclosed a degree of fraud and villainy that not only shocked the conscience of the country, but threatened to loosen the foundations of public and private morality. The chapter of fraud furnished by these congressional inquiries has been supplemented by another chap¬ ter of infractions of law, so glaring and inexcusable in character, that conservative and honest men are troubled with the apprehension that this great Government, so potent in subduing rebellion, will itself fall a victim to a corporation of its own creation. The scheme of a great transcontinental railroad, with its initial point at the one hundredth meridian, extending to the Pacific Ocean, o and fed by branches diverging from its eastward terminus to widely separated points on the Missouri River, was worthy of the statesmen who conceived it. To the people generally it opened up alluring prospects, because it was pregnant with the promise of new markets, rapid travel, and cheap transportation. The fact that the branches were to reach part of the rich harvests gathered in by the main line conciliated rival interests; and the West, quickened by an enterprise so vast and inspired by the promise of benefits so rich and varied in character, hailed its inauguration and celebrated its completion with bonfires and illuminations. Part of this scheme, and one of the chief elements in it, was the obligation to pro-rate mile per mile upon all the roads. Without this obligation conflicting interests could not have been satisfied, and the acts of 186*2 and 1864 could not have been passed. When the bill of 1862 was being discussed, there were but two roads completed to the Missouri River on the eastern boundary of Kansas—the Hannibal and Saint Joseph, and the Missouri Pacific; the latter ter¬ minating at Kansas City. There were no roads completed through the State of Iowa, or within two hundred miles of the Missouri River; consequently the eastern boundary of Kansas was the point which drew universal attention for the commencement of the Union Pacific Railroad, and the more northern points in Iowa were only mentioned as branches. The doubt as to the power of Congress to charter a rail¬ road company within the limits of a State led to the fixing of the initial point on the one hundredth meridian, in Nebraska, which was then a Territory. Had this doubt not existed, it is quite certain the main line would have been what is now known as the Kansas Pacific, and the line from Omaha to the one hundredth meridian would have been the Iowa branch. The advantages of connection at Saint Joseph with Chicago and all points east, and with the Missouri Pacific road, already completed to Kansas City, would have had a controlling in¬ fluence in establishing the. initial point elsewhere, had the question of power been clear and free from doubt. I mention these facts to show why the initial point was fixed in Nebraska. The main line and all its branches were to be one con¬ nected, continuous line of railway. Section 12, act of 186*2, reads: The track upon the entire line of railroad and branches shall be of uniform width. Why ? The law answers: So that, when completed, cars can be run from the Missouri River to the Pacific coast. * * * The whole line of said railroad and branches and telegraph shall be operated and used for all purposes of communication, travel, and transportation, so far as the public and Government are concerned, as one connected, continuous line. It was upon this compact, made for the benefit of the people, that Congress loaned these companies upward of $64,000,000, and made such munificent grants of land to aid in the construction of the Union Pacific road and its branches. The amount of bonds issued was, for the— Union Pacific Central Pacific of California Kansas Pacific Central Branch of Union Pacific Western Pacific Sioux City and Pacific $27, 236,512 25,885,120 6, 303, 000 1, 600, 000 1, 970, 560 1,628,320 64, 623,512 6 These bonds run thirty years from date of issue, at 6 per cent, in¬ terest, payable semi-annually. The interest is paid by the United States until the maturity of the bonds, when the principal and inter¬ est become due and payable by the several companies; so that the whole liability of the Government up to the maturity of the bonds amounts (without the interest upon interest paid every half year) to $180,945,833. Some provisions have been made in the acts of 1862 and 1864 for a partial payment each year by the several companies, but have not been complied with, so far as I can ascertain, in a single instance. The two acts, those of 1862 and 1864, must be taken together in a discussion of this subject. Many very important advantages were secured by the companies in the act of 1864, in addition to those granted in the act of 1862, while scarcely any additional obligations were imposed; but the two acts must be construed as one act. (K. P. vs. Prescott, 16 Wallace, 603.) By the act of 1864 the security for the bonds issued was subordinated to an equal amount to be issued by the companies, and to be secured by first mortgage upon all the prop¬ erty of each company, thus making the security to the Government a second lien. This gave each company double the amount of the Government bonds granted per mile, and equal to cash at par, or nearly so. By this change the Union Pacific could realize in cash on their entire line about $52,000 per mile, or more than the probable cost of the road and equipments. (See House Eeport No. 78, Forty - second Congress, third session, page 17.) By the act of 1864 the land grant was doubled—all the roads receiv¬ ing over thirty-one million acres, or more than the area of seven entire States of this Union, and more than the whole area of New York or Pennsylvania or Ohio. Of this amount the Union Pacific Company received over twelve million acres, from which up to De¬ cember 31, 1875, that company had sold 1,200,000 acres at an average price of $4.47 per acre, or $5,364,000. At this rate the land grant alone would pay the whole entire cost of the road. These lands are an absolute gift to the several companies. By the act of 1864 the exception of mineral lands was so modified as to allow the companies to take coal and iron lands. This was of immense value to the Union Pacific Company, especially on the western half of their road. The act of 1862 provided— That all compensation for services rendered for the Government shall he applied to the payment of said bonds and interest, until the whole amount is fully paid. By the act of 1864 this amouut was reduced one-half, so that only one-half the amount due the companies from the Government for services rendered is to be applied to the payment of the bonds and interest. Many other advantages were given to these companies by the act of 1864. Let me inquire what were the corresponding obligations imposed for the benefit of the Government and the people. Section 18 of the act of 1862 reads— Congress may at any time, having due regard for the rights of said companies named herein, add to, alter, amend or repeal this act. . " Having due regard for the rights of said companies, may add to," &c. It was for these valuable considerations, given by the Government, that these companies agreed that this qualification to add to, alter, and amend should be enlarged into an absolute power to alter, amend, or repeal, as in the act of 1864. Why not? The companies were getting from the Government more than enough to build and equip their 7 roads, and they could well afford to give this absolute power to Con¬ gress. While the theory of the act of 1862 was clearly that the main line and branches should pro-rate, mile per mile, as one connected, contin¬ uous line, as provided in section 12 of the act of 1862, it will be seen that full force and effect are given that section by referring to section 15 of the act of 1864. The companies are required to do what ? Not only to operate their respective roads as " one connected, continuous line," but as the law says so that— In such operation and use, to afford and secure to each equal advantages and facilities as to rates, time, and transportation, "without any discrimination of any kind in favor of the road or business of any or either of said companies, or adverse to the road or business of any or either of the others. The only construction that can be given to these words is, that all the branches should pro-rate per mile with the main line, for in no other way can they have equal advantages and facilities as to rates, time, and transportation. Does anybody suppose this act of incor¬ poration would ever have been granted upon any other conditions ? To hold otherwise would be to contradict the original theory and object of the act. Of what use is a connection of these branch lines with the main line without this provision ? Why did the Government grant them aid in bonds and lands if they were not entitled to pro-rate with the main line ? For it would be an utter impossibility for them ever to repay the Government for the bonds issued them, unless they were to share in the business of a through line; and to-day, because of the unlawful discriminations and refusal of the Union Pacific Company to pro-rate with the Kansas Pacific, that road has passed into the hands of receivers upon motion of the first-mortgage bondholders for default in interest. On this account all the bonds advanced the Kansas Pacific by the Government must be totally lost unless a rem¬ edy is provided. The original amount loaned that company was $6,303,000. Adding the interest the amount at present is about $9,000,000. At the maturity of the bonds the liability of the Gov¬ ernment, and which will have to be paid when due, will be $17,648,- 400, less the amount for services rendered up to the time the road will be sold by the receivers. At least $15,000,000 will have been taken from the Treasury by the refusal of the Union Pacific Company to operate their road according to law. It has become a doubtful ques¬ tion among the people whether this Government possesses the power requisite to compel this Union Pacific Company to comply with any of the obligations of their contract, or with any law of Congress, or decision of a court. So far this company has successfully defied the power of the three co-ordinate branches of this Government. The Supreme Court decided in the Omaha bridge case that the bridge was a part of the connected, continuous line of road, yet we find that company issuing coupon tickets separately at the rate of fifty cents per passenger and $10 per car for crossing the bridge; we find them openly and wantonly refusing to operate their road as required by their act of incorporation; we find them resisting the payment to the Government of the 5 per cent, of net proceeds of the road. While the branch roads are thus made bankrupt, the Union Pacific, by illegally monopolizing all the through traffic at bonanza rates, are enabled to pay not only interest on over $52,000,000 of bonds, over and above the bonds of the United States, but a dividend of 8 per cent, per annum on over $36,000,000 of stock, besides investing large amounts annually in constructing other roads. It should be 8 borne in mind that a large part of these bonds issued by the Union Pacific Company were distributed as dividends to the company in constructing the road, and the stock never was paid for in cash as required by law, but was paid forat about thirty cents on the dollar in "road making" at enormous profits. (See H. R. Reports No. 440, Forty- fourth Congress.) The gross earnings of the Union Pacific Railroad for the year end¬ ing June 30, 1874, were $10,246,760; for 1875, $11,522,021; for 1876, $12,113,990; for 1877, $13,719,343. The net earnings for 1874 were $5,089,789; for 1875, $5,373,655; for 1876, $6,666,171; for 1877, $8,317,091; being an increase over the year 1874 of net earnings of $3,227,303. This statement shows that the whole expense of operating the road is a little less than 40 per cent.—a less ratio for operating expenses than for any eastern road. That it was the design of Congress to provide that the main line and branches were to pro-rate with each other and all have equal advantages in communication over their several lines, and that the immense subsidy given the Union Pacific Company was not for the benefit of the company at the expense of the public, but for the ben¬ efit of the Government and public, I refer to the following extracts from the law incorporating said companies. Section 18 of the act of 1862 says: And the better to accomplish the object of this act, namely, to promote the public interest and welfare by the construction of said railroad and telegraph line, &c. The people's money was appropriated to construct these roads for the public good and for the benefit of the people. The branch lines were to enjoy equal advantages with the main line; all the roads were to be operated as one line of railway. Section 7, act of 1862, reads: Provided, That in fixing the point of connection of the main trunk with the eastern connections, it shall be fixed at the most practicable point for the con¬ struction of the Iowa and Missouri branches. Why fixed at the most practicable point, except for the interest of the public and to enable them to be operated as one road ? Section 14, act of 1862, reads: And be it further enacted, That the said Union Pacific Railroad Company is hereby authorized and required to construct a single line of railroad and telegraph from a point on the western boundary of the State of Iowa, to be fixed by the President of the United States, upon the most direct and practicable route, to be subject to his approval, so as to form a connection with the lines of said company at some point on the one hundredth meridian of longitude aforesaid from the point of commence¬ ment on the western boundary of the State of Iowa, upon the same terms and con¬ ditions in all respects as are contained in this act for the construction of the said railroad and telegraph first mentioned. I quote these extracts of the law to show that the theory and design of the acts of incorporation, viz, that the main line and branches should be operated together as one line, have never been lost sight of in any of the acts. This idea is expressed or implied in almost every sec¬ tion. Lines of railway from other States and Territories were author¬ ized to be constructed upon the same conditions of equal facilities of transportation, travel, % Thirty-second section, eight hundred and sixtieth to eight hundred and eightieth mile-post: Miles. Level track 6. 66 0 to 10 feet per mile 3. 40 10 to 20 feet per mile 3. 71 20 to 30 feet per mile % 2. 31 30 to 40 feet per mile 1.26 40 to 60 feet per mile 2. 66 20.00 Thirty-third section, eight hundred and eightieth to nine hundredth mile-post: Miles. Level track 4. 30 0 to 20 feet per mile , 8. 42 20 to 30 feet per mile 3.48 30 to 40 feet per mile 1. 70 40 to 60 feet per mile 2.10 20, 00 Thirty-fourth section, nine hundredth to nine hundred and twentieth mile-post: Miles. Level track 7. 54 0 to 10 feet per mile 1. 98 10 to 20 feet per mile 3.66 20 to 30 feet per mile 5. 48 30 to 40 feet per mile 0. 00 40 to 60 feet per mile 1. 34 20. 00 Thirty-fifth section, nine hundred and twentieth to nine hundred and fortieth mile-post: Miles. Level track 0.26 0 to 10 feet per mile 2. 74 10 to 20 feet per mile 2. 90 20 to 30 feet per msle 1.70 30 to 40 feet per mile 0. 62 40 to 50 feet per mile 0. 95 50 to 60 feet per mile 10. 83 20. 00 Thirty-sixth section, nine hundred and fortieth to nine hundred and sixtieth mile-post: Miles. Level track 2. 85 10 to 20 feet per mile 0. 45 20 to 30 feet per mile 2. 85 30 to 40 feet per mile 9 95 50 to 60 feet per mile 3. 90 20. 00 Thirty-seventh section, nine hundred and sixtieth to nine hundred and eightieth mile-post: Miles. 0.19 3. 68 4. 20 1.27 1. 20 3. 68 5. 78 20. 00 Thirty-eighth section, nine hundred and eightieth to one thousandth mile-post: Miles. Level track 0. 3!) 20 to 30 feet per mile 6.33 Level track 0 to 10 feet per mile 10 to 20 feet per mile -0 to 30 feet per mile F 0 to 40 feet per mile 50 to 60 feet per mile 80 to 90 feet per mile 14 30 to 40 feet per mile 3.97 40 to 50 feet per mile 1. 74 50 to 60 feet per mile 3.81 60 to 70 feet per mile 3.85 20. 00 Thirty-ninth section, one thousandth to one thousand and twentieth mile-post: Level track 0 to 10 feet per mile 10 to 20 feet per mile 20 to 30 feet per mile 30 to 40 feet per mile 40 to 50 feet per mile The length of grades not given in report of examining commission. Fortieth section, one thousand and twentieth to one thousand and fortieth mile- post: Descending west: Miles. Level track 1. 600 0 to 10 feet per mile 3. 040 10 to 20 feet per mile 1.695 20 to 30 feet per mile 5. 910 30 to 40 feet per mile 2. 225 60 to 70 feet per mile 2. 074 80 to 90 feet per mile 2. 434 Ascending west: 30 to 40 feet per mile '. 1.022 20. 000 These statements show that the Union Pacific in a distance of 510.18 miles lias 90.64 miles of level track, or 17.8 percent. The Kan¬ sas Pacific, in a distance of 436.30 miles, has 50.85 miles of level track, or 11.7 per cent. The aggregate length of the western parts of both roads being 946.48 miles, if the level track were equally proportioned, the length of level track on the Union Pacific would he only 76.26 miles, instead of 90.64 miles; and on the Kansas Pacific 65.23 miles, instead of only 50.85 miles. Of level track and grades up to 20 feet per mile, the Union Pacific has 245.43 miles, or 48.1 per cent., and the Kansas Pacific only 175.61 miles, or 40.2 per cent. If these grades were equally proportioned, the Union Pacific would have only 226.95 miles, instead of 245.43, and the share of the Kansas Pacific would he increased to 194.09 miles. Grades 30 to 60 feet.—Of these the Union Pacific has 208.14 miles, or 40.8 per cent., and the Kansas Pacific has 249.79 miles, or 57.2 per cent. If these grades were equally proportioned, the share of the Union Pacific would be increased to 246.84 miles and the Kansas Pacific would have only 211.09 miles, instead of 249.79 miles. Grades 70 to 90 feet.—Of these the Union Pacific has 56.61 miles, or 10.9 per cent., and the Kansas Pacific 10.90 miles, or 2.5 per cent. Equally proportioned, the Union Pacific would have 36.39 miles and the Kansas Pacific 31.12 miles. These facts show that the Union Pacific has much the larger pro¬ portion of level track and grades up to 20 feet per mile, and that in grades 30 to 60 feet it is also greatly superior, its proportion of these last grades being nearly one-third less than that of the Kansas Pa¬ cific. The slight excess of grades of 70 to 90 feet on the Union Pacific is thus more than balanced by its superiority in level track and all grades up to 60 feet. In cost of operation, therefore, if grades alone are considered, the Union Pacific has greatly the advantage over the Kansas Pacific. If fuel be taken into consideration, the advantages are found to be still greater on the side of the Union Pacific. Coal is abundant, % 15 cheap, and convenient along the western part of its line, while it must he brought loDg distances, at great cost, to the line of the Kau- sas Pacific, and is subject to much deterioration. From the last an¬ nual report of the Government directors we find that coal is placed on cars on the western half of the road for $1.29^ per ton, which is equivalent to wood at less than $1 per cord. In material for road-bed, the Union Pacific has also greatly the advantage, and its track is kept up at less comparative cost than that of almost any other railroad in the United States. These unimpeachable facts demonstrate that the pretense of the Union Pacific Railroad that the operating expenses on its western portion are so great as to require and justify its enormous tariff be¬ tween Cheyenne and Ogden is entirely false. Such pretense is not sustained either by its grades, the cost of its fuel, or the character of the road-bed. I call the attention of the Senate to the following report also, for the purpose of showing the grades and alignment of the Union Pacific Railroad, from an authority which I dare say no Senator will doubt: Extracts from the report, dated November 23, 1868, of General G. K. Warren, of United States Engineer Corps, and Jacob Blickensderfer, jr., of Ohio, and James Barnes, of Massachusetts, civil engineers, who were appointed as a special commission by the President to examine the Union Pacific Itailroad. The line by Evans's Pass was adopted, and it may be noted that here the plains reach their greatest elevation and the Black Hills their lowest depression Both north and south the mountains are higher and the plains at their base lower than on this line. The summit on the Black Hills is the highest point on the line, and is passed at an elevation of 8,235 feet, with grades of 80 feet, ascending from Crow Creek, and 90 feet, descending to Laramie Plains. ***** *• * The summit between Laramie Plains and Rock Creek is 7,169 feet, and is passed with a maximum grade of 32 feet per mile. ******* The railroad keeps near Rock Creek till its junction with the Medicine Bow River, crossing a spur in one place, thereby gaining and losing 125 feet, but with grades not exceeding 25 feet per mile. ******* The road from the Medicine Bow River ascends nearly .continuously over a sandy country, with no well-defined valley, reaching Brown's Summit in the Rattlesnake Hills at an elevation of 7,125 feet This summit is passed with a maximum grade of 66 feet per mile. The road descends in the valley of Mary's Creek, which is followed to its junction with the North Platte. Crossing the Platte at an elevation of 6,477 feet, and pursuing a course generally very direct, the road begins to ascend and continues to do so with some slight descents till we reach another considerable summit at an elevation of 6,907 feet, which is passed with a maximum grade of 45 feet per mile. The road now enters a basin, which has no outer drainage, descends to an eleva¬ tion of 6,655 feet, and, continuing very direct, passes out of this basin at Dodge's Summit, (elevation, 7,100 feet;) maximum grades on this summit 60 feet per mile. The road next crosses Red Desert Basin, descending to elevation at 6,659 feet, and reaches the next summit at elevation 6,791, which is passed with maximum grades of 53 feet per mile. The road now descends to the valley of Bitter Creek with moderate grades. There are some undulations, and at one place for a short distance the grade is 90 feet per mile, but it is designed to reduce this to 53 feet per mile. The road crosses Green River just above the mouth of Bitter Creek at an eleva¬ tion of 6,078 feet. Green River is followed up a few miles, and the road then goes westward a few miles across a ridge 6,400 feet elevation, and descends to the margin of Black's Pork at elevation 6,154 feet. This last summit is passed with a maximum grade of 61 feet to the mile. The road now descends Black's Fork with'undulating grades, whose maximum is 53 feet per mile, to the junction of the Muddy Fork, and at the time of our exam¬ ination, October 30, [1868,] this was the end of the track. * * * The location is continued up the Muddy Fork to the rim of the Great Salt Lak e basin, reaching it at an elevation of 7,460 feet. The maximum grades are to be 61 feet per mile. The line descends along Sulphur Creek to Bear River, follows down 16 this to an elevation of 6,677 feet, and then turning np Yellow Creek, reaches Reed's Summit with easy grades at an elevation of 6,806 feet. The descent into Echo Canon is made with maximum grades of 90 feet per mile. The line follows down Echo Canon to the "Weber River, and continues down this to the Valley of the Great Salt Lake, coming out of the Wasatch Mountains at the lower end of the Weber Canon, at aiq elevation of 4,570 feet, and with a maximum grade of 90 feet per mile. * ****** This [Promontory] range is passed with grades ascending westward of 80 feet per mile, starting at an elevation of 4.300 feet and reaching a summit of 4,961 feet, from which descending grades of 53 feet per mile again bring the location down to the elevation of 4,315 feet at the head of the [Salt] Lake. * In the valleys of the streams from Omaha throughout the line to the head of the Great Salt Lake the grades are low, and in the preceding summary they have not been specially noted. Care was generally taken in the location to hold all the elevation gained at any place in approaching a summit, and so to adjust the grades as to enable the road to be properly divided into working divisions. Very little ascent and descent in the whole line has been used up, except in passing summits that it was impossible to avoid. The elevation at Omaha is 964 feet; at the head of the Great Salt Lake 4,315 feet. The sum of the ascents going west is 12,995 feet, and the consequent sum of the descents is 9,625 feet. The construction of the road in regard to the amount aud character of the excavations and embankments has been remarkably easy. Between Omaha and Granite Canon, a distance of 535 miles, there was not a yard of rock-excavation, and the natural surface itself, over a great portion of it, would have permitted nearly practicable grades. From Granite Canon westward to the [present] end of the track (89 miles) the work is less than on eastern roads of the same length, and the most difficult parts are light compared with roads in the Alleghany Moun¬ tains. There is but one tunnel on the whole distance, which is at Mary's Creek, 230 feet in length. * * * Minimum curve 955 feet radius. * * * The general route for the line is exceedingly well located, crossing the Rocky Mountain ranges at some of the most favorablep asses on the continent, and possessing capabilities for easv grades and favorable alignment unsurpassed by any other railroad line on similarly elevated grounds. Mr. President, as a matter of fact there is no other road in the United States that is operated for less than 40 per cent, of its gross earnings. The gross earnings on all the roads in the United States for the year 1875 (71,759 miles) were $503,065,505, net $185,506,433. This shows the average cost of operation to be over 60 per cent. (Poor's Manual, 1876-'77.) If they say it costs more to operate the western half of their road than the eastern half, I present these figures which show to the con¬ trary. But should this claim be true, I answer that this company re¬ ceived fiom the Government $32,000 and $48,000 per mile for all of this part of their road. Should all of their statements about grades, fuel, &c., be true, and it did cost double as much to operate the western part of the road, their agreement made with the Government by accepting the charter with a stipulation and condition requiring them all to operate their roads, main line and branches, as one connected, continuous road, without any discrimination for or against each other, forever bars them from such a plea. A continual failure, neglect, and refusal to operate their roads according to the specifications in the act of incorporation works a forfeiture of their corporate rights and fran¬ chises. This is a well-settled rule of law, and I hold it to be the duty of the Government to take notice of such failure and refusal and apply the remedy. Millions of the people of this country are wronged and injured by the wanton defiance of law practiced daily and for years by the Union Pacific Railroad Company. Some of the great States of the West have protested against it, and have memorialized Congress to compel all these companies to pro-rate according to law. In January, 1874, by unanimous vote, the Legisla¬ ture of Missouri adopted a preamble and resolutions upon this sub- 17 ject. Tliey still remain upon tlie files of tlie Senate unsatisfied and unheeded. I read the conclusion of the preamble and resolution. Whereas the people of the State of Missouri are largely interested in com¬ merce and intercourse with the vast and rapidly developing regions traversed by the Union Pacific Railroad and branches and, together with the people of adjacent States, are entitled to all the benefits of the uniform rates and choice of routes which were intended and provided for in the acts of Congress organizing and sub¬ sidizing said railroads: Therefore, Resolved by the senate,-(the house of representatives concurring therein,) That our Senators be instructed and our Representatives in Congress be requested to urge upon the consideration of their respective Houses such legislation as will secure to the people of the United States those equal advantages and facilities as to rates, time, and transportation on the Union Pacific Railroad, and the several branches thereof, which are reserved and guaranteed to them as a chief part of the consid¬ eration to be given by the companies for the grant of lands and bonds so gener¬ ously given to them by Congress. The Legislature of Illinois, on the 31st of March, in the same year, adopted a similar preamble and resolution. In the Legislature of Kansas, February 4, same year, the following resolutions were passed: 1. That the Union Pacific Railroad Company, by its continued and persist¬ ent violation of law in its refusal to recognize the Kansas Pacific, formerly the Union Pacific Railway, eastern division, as one of the branches contemplated in the original act of July, 1862, and the subsequent amendments thereto, and by its further refusal to grant unto the said Kansas Pacific or Union Pacific Railway, eastern division, all the privileges, immunities, and benefits as provided for, has not only injured the business of that road, but seriously retarded and injured the commercial and agricultural interests of the State of Kansas, by compelling said road to advance their rates of transportation of freight and passengers within the State, on account of its being cut off from its legitimate portion of through busi¬ ness. 2. That we earnestly request the Congress of the United States to take such measures as will at an early day compel the Union Pacific Railroad Company to afford the same facilities for the transportation of freight and passengers, both in regard to rate, time, and transportation, as i^ contemplated by law, without dis¬ crimination or injury to the said Kansas Pacific, formerly the Union Pacific Rail¬ way, eastern division. 3. That our Senators be instructed and our Members of Congress requested to bring this matter before the Congress of the United States at the earliest prac¬ ticable moment, and that they urge au immediate investigation into the facts or the case, in order that such unjust discrimination shall cease and the Condition# of the law be fulfilled. Mr. President, it requires no stretch of vision to enable any one to see how these unjust discriminations are practiced upon the people by this company. By refusing to pro-rate and give equal advantages to the branch lines as required by the act of incorporation, all that part of the country north or south of a direct railroad connection with the eastern terminus of the main line is compelled to make connection at Omaha; for the tariff rates for passengers and freight are more from any point west of Omaha, at the point of connection of any branch, than from Omaha to Ogden. These unjust, illegal, and prohibitory discriminations are very severely felt by the people of Colorado, Kansas, Missouri, and all States south of the Ohio River. As I said before, it is not a controversy between individuals and the railroads, or one road with another. If it were, the Union Pacific would continue to be, as it has so far been, complete master of the sit¬ uation. Law is a matter of not the slightest importance to them unless it is favorable to their interests. Congress enacted the law of June 20, 1874, to protect the public against these unjust and unlawful discriminations. It makes it a misdemeanor for any officer or agent to refuse equal rates, &c., and the punishment is a tine of $1,000 and imprisonment not less than six months. It authorizes any person or company aggrieved to institute proceedings, &c., but what progress 2 CA 18 can an individual or bankrupt company make against a corporation whose net profits exceed $6,000,000 per annum? Nothing but the strong arm of this Government can apply the remedy and compel a due observance of the law. It is the right and duty of the Govern¬ ment to proceed in this matter. Let the public know whether any corporation can successfully defy the law and Government of these United States. Let us know whether we have a Government able and willing to protect the people in their rights'and privileges. The obligations imposed by Congress have been and still are totally disregarded by the Union Pacific Company, and in retaliation and for self-defense, the Kansas Company has used the Denver Pacific to shut out the main line from the State of Colorado. While these com¬ panies are quarreling over this question, the people of the country are still compelled to pay these exorbitant rates. The young and vigorous State which I have the honor to in part represent in this Chamber, is practically embargoed by the refusal of these roads to comply with the law. No article of commerce raised or manufact¬ ured, can be transported west of Cheyenne without paying more for freight, even for 57 miles, than is charged from Omaha to Ogden, a distance of 1,032 miles. I select a few examples of discrimination from late tariff rates by the car-load of ten tons. On bacon the charges from Cheyenne to Ogden exceed those from Omaha to Ogden $45; for beans, $85 ; for mess-beef, $81; coal-oil, $81; grain, $88 ; hides, $213.50; lard, $71.50; lumber, $70; powder, $108; sugar, $81. Excess of charges in a single train of fourteen cars for 516 miles over 1,0.32 miles is $1,054.40. Neither Kansas, Colorado, nor Missouri can ship bacon, mess-beef, grain, live stock, &c., via Cheyenue, to any of the western States or Territories, and all are entirely shut out from the markets of Utah, Montana, Nevada, and other regions. Like discriminations are made by the Unio>n Pacific Company in freight traffic by the hundred weight. These rates are simply prohibitory of any shipments from the line of the Kansas Pacific to points on the Union Pacific west of Chey¬ enne. They are intended to compel all commerce with the region west of Cheyenne to traverse the entire line of the Union Pacific Railroad. On all freight traffic from Sacramento and San Francisco, intended for points on the Kansas Pacific Railway, or via that road to points east or south of its eastern terminus, and on all traffic destined to the Pacific Coast, the same system of destructive discrimination is practiced. On ale and beer, bacon, bitters, canned goods, candles, coal-oil, dried fruit, hardware, iron and nails, liquors, (in wood) stoves, and sugar, for example, the charge is greater between Chey¬ enne and San Francisco than between Omaha and San Francisco. The Central Pacific Railroad (from Ogden west) charges the same rates, whether the goods are from Omaha or Cheyenne. On through passenger fares the rates are from Omaha to Ogden, first-class,$54; emigrant,$21.60;from Cheyenne, one-half the distance, it is first-class, $46.50, emigrant, $46.50, so that no passenger can go west to California or go east from California via Kansas Pacific branch without paying an overcharge of $17.50 on first-class tickets. There is a large emigrant travel from the seaboard cities westward, on which the emigrant rate from New York to San Francisco is $60, of which the Union Pacific receives $21.60 from Omaha to Ogden. On the same class of business coming from the Kansas Pacific the Union Pacific charges a fare of $46.50 between Cheyenne and Ogden, which is $24.90 more for 516 miles than for 1,032 miles. The mere statement of the preceding facts is enough, without / 19 argument, to show that the rates are intended to destroy all com¬ merce which does not pass over the entire line of the Union Pacific Railroad; and that, if we may judge by its tariffs, neither passengers nor shippers have any rights that the Union Pacific Railroad is bound to respect. The commerce between California and Colorado is already large and is constantly increasing, notwithstanding these villainous dis¬ criminations in freight by the Union Pacific Company. During the years 1875-'76, the crops in Colorado were nearly all destroyed by grasshoppers, and our people had to depend on California and other States to supply the deficiency. .Potatoes were purchased in Texas and shipped to Denver, a distance of over two thousand miles, cheaper than they could be had from Ogden, in Utah, about one-quarter the distance. On cabbage by the car-load the charges from Sacramento to Denver are $515, distributed as follows: Sacramento to Ogden, 743 miles, $195.50 ; Ogden to Cheyenne, 516 miles, $229.50; Cheyenne to Denver, 106 miles, $90. One firm in Denver purchased in California last year 160 car-loads of fruit, the freight rates being more to Den¬ ver than to Chicago. In car-load lots the rates from San Francisco per 100 pounds to Chicago are $1.50; to Saint Lous, $1.50; to New York, $1.50 ; to Cincinnati,$1.60 ; to Denver, $1.94,or forty-four cents per 100 pounds more to Denver, being 1,000 miles less distance than the nearest of the other points named. The rate on bottled beer from Chicago to San Francisco in car-load lots is $2 per 100 pounds, via the Union Pacific Railroad, distance about 2,400 miles. On one car-load of ten tons this would amount to $400. This is the published tariff rate of the Union Pacific Railroad Company, yet we find them charging for one car-load of bottled beer, in May last, $315 freight from Cheyenne to Laramie, only 57 miles west of the former place. This car-load came from the Kansas Pacific Railway and was delivered to the Union Pacific at Cheyenne. I hold in my hand the original freight-receipt of the Union Pacific Company, to show the truth of this statement. These illegal and outrageous discriminations are made to compel all shippers west to traverse the entire line of the Union Pacific Com¬ pany. Although the Union Pacific skirts ou^ northern boundary nearly 400 miles, and the Kansas branch traverses the State over 300 miles, the people of the State are thus, in open defiance of law, deprived of all the benefits of a through line, and to all persons traveling across the continent Colorado is a forbidden land. During the month of July last it became necessary for the Govern¬ ment to send the Second Regiment of Infantry from Georgia to San Francisco. They went via the Kansas Pacific road to Cheyenne. iVom Cheyenne to Ogden, five hundred and sixteen miles, the Union Pacific Company charged $46.50 per capita, or nine cents per mile, being the same rate for five hundred and sixteen miles as for ten hundred and thirty-two miles. This account is unadjusted, and the papers are in the Quartermaster-General's Office now, pending settle¬ ment. This is in opeu violation of the acts of incorporation in regard to the transportation of troops and munitions of war. Mr. President, I desire to discuss this subject fairly and candidly. I am a friend to railroads. They are the great promoters of civiliza¬ tion. When subsidized by the Government so lavishly with the money of the people I contend they ought to be operated for the benefit of the people; and especially when such stipulations are made and agreed upon as a condition of subsidy. Strip this question of all sophistry and state the plain, unvarnished facts and what do we find in regard to the conduct of the Union Pacific Company ? First, we 20 find not one dollar was ever risked in tlie payment for stock sub¬ scribed which was required to be paid iu money by law. Second, we bud the whole cost of construction to be in round numbers $50,000,000. Third, we find the first mortgage bonds issued by the company and the bonds of the United States amounting together in round numbers to $54,000,000, a sum fully equal to the whole cost of the construction of the road. Fourth, we find a stock aud bonded debt account amount¬ ing to upwards of $113,000,000, or a profit to the company above the cost of construction of about $63,000,000, including the stock and junior bonds issued at par value. It must be borne in mind that through the aid of the Credit Mobelier of America the company itself constructed the road, and these immense profits were distributed as dividends between the stockholders. Income bonds and land-grant bonds were issued by the company and sold as low as 60 per cent., and the stock was taken at 30 per cent, in " road making," so that the net profits at cash value appeared to be " at least $23,000,000." In House Report No. 78, Forty-second Congress, third session, page 17, the committee say : It appears, tlien, speaking in round numbers, that the cost of the road was $50,000,000, which cost was wholly reimbursed from the proceeds of the Govern¬ ment bonds and first-mortgage bonds ; and that from the stock, the income, and land-grant bonds, the builders received in cash value at least $23,000,000 as profit, being a percentage of about 48 per cent, on the entire cost. Also see House Report No. 77, third session of Forty-second Con¬ gress ; also Report No. 440, first session, Forty-fourth Congress. This, sir, is the company that agreed to operate their road as one connected continuous line wuth all the branches, so that— in such operation and use to afford and secure to each equal advantages and facili ties as to rates, time, and transportation, without any discrimination of any kind in favor of the road or business of any or either of said companies, or adverse to the road or business of any or either of the others. Having successfully violated the law and defied the Government thus far, they propose to continue, and thus monopolize the through traffic of this entire continent. The president of the Union Pacific Company, iu making his report to the stockholders, dated Boston, March8, 1876, says: Its coal traffic to-day, in its infancy, controls almost the entire fuel trade from the Missouri River to the Pacific coast, and as the manufactories, furnaces, mills, and other powers become necessary, the traffic in this one product cannot to-day b® estimated. Again, he says : And that for over one thousand miles long east and west, and three hundred miles wide north and south, are tributary to this one great artery. If the Government did subsidize this company for the purpose of enriching it, and not to promote the public good and welfare of the people, as the law declares, then this ideal picture of a great monop¬ oly, to which all the people of this great nation must pay tribute, is worthy of its master. But he is not satisfied with the control of the through traffic of this nation only; he expects to be able, to use his words, " to hold the great bulk of the travel and freight for the Pacific coast and for China and Japan and other ports in the Pacific Ocean. (See same report.) Mr. President, I think I have shown that these roads are notoper- ated according to the acts incorporating them; that they are operated in direct, open, and willful violation of the compact between them and the Government; that the object for which they were incorpor¬ ated, and for which the Government expended so many millions of 21 dollars and donated such an empire of lauds, lias been completely defeated, and that by reason of such violation of law the Govern¬ ment will eventually lose in one instance about $15,000,000, unless a speedy remedy is provided. Now, sir, what is the remedy? No one can deny the power and authority of Congress to alter, amend, or repeal the act of incorporation absolutely and outright, for that was one of the conditions upon which the immense enlargement? of the advantages and benefits granted these companies by the act of 1864 was imposed. The right to alter, amend, and repeal in the act of 1862 was restricted and conditioned, but in the act of 1864 it is without condition, and this is a part of the compact. Section 17 of the act of 1862 provides— That if said roads are not completed, so as to form a continuous line of railroad ready for use, from the Missouri River to the navigable waters of the Sacramento River in California, by the 1st day of July, 1876, the whole of said railroads before mentioned, and to be constructed under this act, together with all their furniture, fixtures, rolling-stock, machine-shops, lands, tenements, and hereditaments, and property of every description, kind, and character, shall be forfeited to, and be taken possession of, by the United States. How completed? "So as to form a continuous line of railroad ready for use," &c., says the law. It was completed in 1869 so as to obtain the bonds to be loaned by the United States when completed, but not completed so as to be liable to pay the Government 5 per cent, on the net earnings of the road until five years afterward. By the terms of the charter the companies were to receive the subsidy bonds as they completed each section of forty miles, and by the terms of the same act were required when the roads were completed to pay 5 per cent, of net earnings to the Government until all the subsidy bonds and interest were fully paid by the companies. By the same construction of the law I suppose the Union Pacific Company would claim they were not compelled to operate their road as required by law until July 1,1876, as that is the date fixed by sec¬ tion 17 that these roads shall be completed, " so as to form one con¬ tinuous line of railroad ready for use," &c. More than one year has elapsed since that time, so that no excuse can be given for further default. It is a well-settled principle of law that an act of private incorporation is a contract between the Legis¬ lature and the corporation, and equally a well-settled principle of law that when corporations do not act up to the end or design for which they were incorporated their charters are forfeited. Who, then, can doubt that when specifications and conditions are imposed and openly and defiantly disregarded during a term of years, that the power is lodged with, and it is the duty of, the Government either to compel a due observance of the law on the part of such defaulting companies, or by the proper action at law to declare their charters forfeited and take immediate possession of their property of every kind and nature. In support of this position I refer to the following authorities: (High's Extraordinary Legal Remedies, volume on mandamus, quo warranto, and prohibition, page 471.) "A corporate franchise is a species of incorporeal hereditament, in the nature of a special privilege or immunity, proceeding from the sovereign power and subsisting in the hands of a body-politic, owing its origin either to express grant or to prescription which presupposes a grant. It follows, therefore, that the sovereign power has the right at all times to inquire into the method of user of such franchise, or the title by which it is held, and to declare a forfeiture for misuser or non-user, if sufficient cause appear, or to render judgment of ouster if the parties assuming to exercise the franchises have no title thereto. And it may he stated, as a general rule, that wherever there has been a misuser or non-user of corporate franchises, which are of the very essence of the contract between the sovereign power and the corpo¬ ration, and the acts complained of have been repeated and willful, they constitute just ground for a forfeiture in proceedings upon an information." Commonwealth vs. The Commercial Bank, 28 Pa. stat., 383, and see People vs. Kingston and Middleton Turnpike, 23 Wendell, 193. " The extent of misuser necessary to work a forfeiture is very clearly stated in the opinion of the court by Judge Lewis, as follows: These acts are expressly prohibited in the fundamental articles. "Thequestion then arises, do these constant and willful violations of the fundamental conditions upon which the charter was granted, en¬ title the Commonwealth to demand its forfeiture ? The question is not whether a single act, or even a series of acts of misuser, through inadventure or mistake, may work a forfeiture, but whether the con¬ stant and willful violation of these important conditions of the grant produce that effect ? Mr. Justice Story, in delivering the judgment of the Supreme Court of the United States, Mumma vs. Potomac Com¬ pany, held that— A corporation, by the very terms and nature of its political existence, is subject to dissolution by forfeiture of its franchises for willful misuser and non-user. (See 8 Peters's Report, page 287.) "Many years befofe that decision was pronounced the same prin¬ ciple was fully recognized by the same high authority in Truett et al. vs. Taylor et al., 9 Cranch, 43, where the right of forfeiture for misuser or non-user was held to be the common law of the laud and a tacit condition annexed to the creation of every corporation. It is now well settled by numerous authorities that it is a tacit con¬ dition of a grant of incorporation that the grantees shall act up to the end or design for which they were incorporated; and hence, through neglect or abuse of its franchises, a corporation may forfeit its charter, as for condition broken, or for a breach of trust. (See Angell & Ames on Corporations, paragraph 776, and the cases there cited.) In the case of The Attorney-General vs. The Petersburgh and Roanoke Rail¬ road Company, 6 Iredell, 461, it was held the omission of an express duty prescribed by charter is a cause of forfeiture, and that as im¬ plied powers are as much protected by law as those which are ex¬ pressed, implied duties are equally obligatory with duties expressed and their breach is visited by the same consequences. " It may be affirmed as a general principle that where there has been a misuser or a non-user in regard to matters which are of the essence of the contract between the corporation and the State, and the acts or omissions complained of have been repeated aud willfully, they constitute a just ground of forfeiture." (State Bank vs. The State.) See No. 1, Blackford's Reports, page 279: The existence of the corporation depends on the implied condition that it will not violate its charter. * * * The president and directors of the corporation become the agents of the stockholder, and if they violate the conditions on which he enjoys this privilege, his privilege is immediately subject to forfeiture by this act of his agents. Nor will the regard which the Constitution has for private property secure such property from annihilation by a dissolution of the corpora¬ tion. £o that we see nothing in the Constitution to prevent the seizure of those franchises, let the eifect upon private property be what it may. And there can be no doubt but that this judgment, so far as it authorizes a seizure of the fran¬ chises into the custody of the State, is warranted by law. When it appears that the liberty has been once granted, and its forfeiture by misuser or non-user, the judgment shall be that it be seized into the king's hands. (YearBook, 15 edition, page 4, cited in 2 Kyd on Corporations, 402.) And such appears to be the law at present. Angel & Ames, paragraph 803, say: "The duties assigned by an act of incorporation are conditions annexed to the grant of the fran¬ chise conferred; hence non-compliance with the requirements of an act incorporating a turnpike company, as to the construction of the road, is per se a misuser forfeiting the privileges and franchises of the company. Indeed, the non-performance of a particular act re¬ quired by the charter is a cause of forfeiture, &c. (Att'y Gen'l vs. Petersburgli R. Co., 6 Iredell, 456.") Precedents: Angel & Ames, page 22: "Private corporations, on the other hand, are created by an act of the Legislature, which, in connection with its acceptance, is regarded as a compact, and one which, so long as the body corporate faithfully observes, the Legislature is constitutionally restrained from impairing. " Private corporations are in the nature of a contract; this is a well- settled principle of law." (Angel & Ames, paragraph 81:) " It was once doubted whether the being of a corporation could be forfeited by a misapplication of the powers intrusted to it; but it is now well settled that it is a tacit condition of a grant of incorpora¬ tion that they shall act up to the end or design for which they were incorporated, and hence through neglect or abuse of its franchise a corporation may forfeit its charter as for condition broken or for a breach of trust." Terrett and others vs. Taylor and others, (see 9 Cranch's Report, 51:) A private corporation created by the Legislature may lose its franchises by a misuser or a non-user of them ; aifd they may be resumed by the Government under a judicial judgment upon a quo warranto to ascertain and enforce the for¬ feiture. This is the common law of the land, and is a tacit condition annexed to the creation of every such corporation. Dartmouth College vs. Woodward, (see 4 Wheatley, 658 and 659:) The charter of a corporation, says Mr. Justice Blackstone, may be forfeited through negligence or abuse of its franchises, in which case the law judges that the body-politic has broken the condition upon which it was incorporated, and thereupon the corporation is void. The Chesapeake and Ohio Canal Company vs. The Baltimore and Ohio Railroad Company, (see 4 Gill, and Johnson's Reports, 4 and 5.) A corporation may forfeit its charter by non-use, of its franchises; but it is well known that such forfeiture can only be enforced by judicial proceedings insti¬ tuted for that purpose at the instance of the Government * * * * by (the forfeiture of its charter through abuse or neglect of its franchises, as for a condition broken, there being a tacit condition in every such grant that the corporation shall act up to the end of its institution. Commonwealth vs. The Union Fire and Marine Insurance Com¬ pany, in Newburyport, Massachusetts, (see 2 Mass. Reports, 230 and 233:) We are well satisfied that a corporation, as well when created by charter under the seal of the Commonwealth, as by statute of the Legislature, may by non-feas¬ ance or malfeasance forfeit its franchises and that by judgment on an information the Commonwealth may seize them. And if the allegations stated in the motion for a ruling in this case were true, and the Commonwealth had caused an informa¬ tion to be filed and prosecuted for the purpose of seizing the corporate franchises for such a malfeasance, judgment for those causes might have been rendered for the Commonwealth. But an information for the purpose of dissolving the corporation or of seizing its franchise cannot be prosecuted but by authority of the Commonwealth, to be exorcised by the Legislature, or by the attorney or solicitor general, acting under 24 its direction or ex officio in its behalf, for the Commonwealth may waive any breaches of any condition, expressed or implied, on which the corporation wa« created; and we cannot give judgment for the seizure by the Commonwealth of the franchises of any corporation, unless the Commonwealth be a party in interest to the suit and thus assenting to the judgment. I contend that this Government has the right to declare the char¬ ter of any company organized by act of Congress, and subsidized by Congress, forfeited for willful violations of conditions implied or ex¬ pressed in said charter, and I contend, in the cases referred to, it is the duty of the Executive branch of the Government to do so, unless legal impediments exist to prevent such immediate action. If it shall be found that the legal officer of the Government is not authorized, and the fourth section of the act of April 10, 1869, does not continue special authority in him, to investigate whether or not the charter and all the franchises of the Union Pacific Railroad Company and other defaulting companies have not been forfeited, then I shall urge upon this Congress to provide such authority and direction, to the end that the people of this country may no longer be denied the rights and privileges so justly due them. I have thus attempted, in my feeble way, to give utterance and voice to the complaints of the people on the subject of these railroad extor¬ tions. The hour has arrived for the Government to take action, if it does not intend to abandon the people to the rapacity of these railroad corporations. The question is a simple one; no amount of sophistry can becloud it; no veneering can cover or alter its features. Shall railroads built by the people's money be operated in the interests of the people? Shall the will of the nation, expressed in its laws, be heard or stifled ? Shall corporations which have mercilessly plun¬ dered States and communities compel the Government to surrender, or shall the Government vindicate its power by compelling its creat¬ ures to act legally and justly? Mr. President, I ask for the present consideration of the resolution. Mr. SAUNDERS. Mr. President, I hold in my hand a dispatch I received a few moments ago from my town of Omaha, which I should like to have read for the information of the Senate. The VICE-PRESIDENT. The paper will be read. The Chief Clerk read as follows : Omaha, November 12, 1877. To Alvin Saunders: The question whether the Kansas Pacific, Denver Pacific, and Burlington and Missouri liiver are branches of the Union Pacific, and what their rights are in re¬ spect to prorating, is now pending before Judge Dillon, and will be argued on Thursday. An early decision may be expected. I hope there will be no legisla¬ tion by Congress while the judicial question is pending in the court. A. J. POPPLETON. Mr. SAUNDERS. I will state that Mr. Poppleton is the attorney for the Union Pacific Railroad, and there is no doubt that this infor¬ mation is correct. The case is known all over the country. There are a large number of people who believe that this is a legal question rather than a question requiring action by Congress ; and inasmuch as the matter is now before the courts, and will probably be decided before any action can be taken here, I hope no further steps will be taken here, but that a little time will be given at least to hear the result of the trial in court. If the question should be pressed for action now, evidently those connected with the main line will want to be heard. For the purpose of giving time to let us hear of the action of the court, I move that this resolution be laid on the table. The VICE-PRESIDENT. The Senator from Nebraska moves to lay the resolution on the table 25 Mr. CHAFFEE. I hope that will not be done. This is a mere in¬ quiry of the President. The VICE-PRESIDENT. The motion is not debatable. Mr. CHAFFEE. Unless some Senator signifies his desire to speak on the resolution, I trust it will be considered now. The VICE-PRESIDENT. The motion to lay on the table is in order and is not debatable. Mr. SAUNDERS. I will simply answer the question of the Sena¬ tor that I do wish to say something on it, but am not prepared to do so this morning, because I want to examine the figures he has pre- scntcd. Mr. CHAFFEE. Certainly, then I am perfectly willing to let it lie aside if the Senator from Nebraska desires to speak on it. The VICE-PRESIDENT. The resolution goes over. o 3 CA