CHAPTER II.

THE PACIFIC RAILROAD INIQUITY.

On the first day of July, A. D. 1862, the charter of the Union Pacific

railroad was passed. It contains, among others, the following

provisions, to-wit:--

"SECTION 2. That the right of way through the public lands be, and the

same is hereby, granted to said company for the construction of said

railroad and telegraph line, and the right, power, and authority, are

hereby given to said company to take from the public lands adjacent to

the line of said road, earth, stone, timber, and other materials, for

the construction thereof. Said right of way is granted to said railroad

to the extent of two hundred feet in width on each side of said

railroad, where it may pass over the public lands, including, all

necessary grounds for stations, buildings, workshops, and depots,

machine shops, switches, side tracks, turn-tables, and water stations."

The right of way was reduced to one hundred feet for each side of the

railroad, by act of congress of July 2, 1864, and the right to take

material for the construction of the road was limited to ten miles on

each side thereof, by the same act. By this section the company is

allowed to take from the public lands all the material needed in the

construction of the road; to strip the lands, and leave them naked for

the people. The real value of the lands is given to the company; the

refuse left for the American people.

A part of the third section reads as follows:--

"That there be, and is hereby, granted to the said company, for the

purpose of aiding in the construction of said railroad and telegraph

line, and to secure the safe and speedy transportation of the mails,

troops, munitions of war, and public stores thereon, every alternate

section of land, designated by odd numbers, to the amount of five

alternate sections per mile, on each side of said road, on the line

thereof, and within the limits of ten miles on each side of said road,

not sold, reserved, or otherwise disposed of, by the United States, and

to which a pre-emption or homestead claim may not have attached at the

time the line of said road is definitely fixed. Provided, that all

mineral lands shall be exempted from the operation of this act; but when

it shall contain timber, the timber is hereby granted to said company."

By the act of congress of July 2, 1864, this act was so amended as to

grant ten alternate sections on each side of the road, and to grant to

the company the iron and coal found within ten miles of the road. The

reader will notice the reasons given for this grant. 1st. To aid in the

construction of the road; a legitimate reason. 2d. _To secure the safe

and speedy transportation of the mail, troops, munitions of war_, &c.

Twenty sections of land per mile are given to the company for the

purpose of securing the safe and speedy transportation of troops, and

above enumerated articles. It has been said that a poor reason is better

than no reason. Of all poor reasons given for an act, this appears to be

one of the weakest. The reader will not be able to discover its force.

As we progress, we will find that from its inception this Pacific

railroad charter, and amendments, were "conceived in sin, and brought

forth in iniquity;" that, in its provisions and grants, it presents a

state of facts which stamps the whole scheme as a base fraud upon the

public, planned by men who were seeking to enrich themselves at the

expense of their country; and that congress, either from inattention to

the interests of the people, or because the spoils were to be divided,

granted the company the precise charter that was to enable it to plunder

the public without hindrance.

That we may not be regarded as treating the subject captiously, let us

concede that the reason given was a good one, and that the grant of

lands would give security to the transportation of the mails; still the

thought presents itself that a grant of lands to the value of $15,500

per mile would be ample aid for the people to give to this company, in

the construction of its road. It is not a government work, owned by the

public, operated and controlled by the government. It is a private

enterprise, and while all persons see the necessity of a railroad

connection between the Atlantic and Pacific states, but few will indorse

the policy of the government giving to this private company more aid in

lands and money than the entire cost of the road, or more than it would

have cost if built by private capital. And when it is found that this

large grant is made without any equivalent, that not even the mails,

troops, or munitions of war, can be transported over the road without

the payment of just such rates as this private corporation chooses to

charge, the conclusion is inevitable that the good, not of the public,

but of the corporation, was the controlling motive in affording it aid;

that the untold millions of subsidy bonds, and vast tracts of land

wrongfully taken from the public, and given to this company, was but

placing the interests of the whole people, in their social and business

intercourse across the continent, at the mercy of a soulless

corporation.

The donations we have already noticed are the "right of way;" the right

to take all building material within ten miles of the road, and the

grant of twenty sections of land per mile. But this is not all. Section

five of the act provides: "That for the purposes herein mentioned, the

secretary of the treasury shall, upon the certificate, in writing, of

said commissioners, of the completion and equipment of forty consecutive

miles of said railroad and telegraph line, in accordance with the

provisions of this act, issue to said company bonds of the United States

of one thousand dollars each, payable in thirty years after date,

bearing six per centum per annum interest (said interest payable

semi-annually) which interest may be paid in United States treasury

notes, or in any other money or currency which the United States have,

or shall, declare lawful money, and legal tender, to the amount of

sixteen of said bonds per mile; and to secure the repayment to the

United States, as hereinafter provided, of the amount of said bonds so

issued and delivered to said company, together with all interest thereon

which shall have been paid by the United States, the issue of said bonds

and delivery to the company shall _ipse facto_ constitute a first

mortgage on the whole line of the railroad and telegraph, together with

the rolling stock, fixtures, and property of every kind and description,

and in consideration of which said bonds may have been issued." As we

shall hereafter see, this section was amended by act of July 2d, 1864,

so as to allow the company to issue its own bonds to the same amount per

mile issued by the government, and to subrogate the government bonds to

those issued by the company, thus making the bonds issued by the company

the first mortgage bonds.

Section six provides for the transmission of messages by telegraph, and

the transportation of the mails, troops, munitions of war, supplies, and

public stores for the government, giving it the preference at all times,

"at fair and reasonable rates of compensation, and not to exceed the

amount paid by private parties for the same kind of service."

Section eleven reads as follows:--

"That for three hundred miles of said road, most mountainous and

difficult of construction, to-wit: One hundred and fifty miles

westwardly from the eastern base of the Rocky mountains, and one hundred

and fifty miles eastwardly from the western base of the Sierra Nevada

mountains, said points to be fixed by the president of the United

States, the bonds to be issued in aid of the construction thereof shall

treble the number per mile hereinbefore provided, and the same shall be

issued, and the lands herein granted be set apart, upon the construction

of every twenty miles thereof, upon certificate of the commissioners as

aforesaid, that twenty consecutive miles of the same are completed; and

between the sections last named, of one hundred and fifty miles each,

the bonds to be issued to aid in the construction thereof shall be

double the number per mile first mentioned, and the same shall be

issued, and the lands herein granted be set apart, upon the construction

of every twenty miles thereof, upon the certificate of the commissioners

as aforesaid, that twenty consecutive miles of the same are completed;

provided that no more than fifty thousand of said bonds shall be issued

under this act to aid in constructing the main line of said railroad and

telegraph."

This vast amount of bonds was issued to the main line of the road,

which, as will be seen by an examination of the first section of the

act, terminates at the western boundary of Nevada territory. This

company, under its charter, gets $50,000,000 in bonds; its charter does

not authorize it to construct the whole road to the Pacific, but to the

western boundary of Nevada, where it meets the Central Pacific railroad,

built by a company chartered by the legislature of California. Fifty

millions in bonds, with the privilege of subrogating the security for

their payment to a like amount issued by the company as first mortgage

bonds on the road, with the grant of lands above named, the right of

way, and the right to all building material within ten miles of the line

of the road; this is deemed a fair provision for one company. In order

that no charge of selfishness, or want of charity, should be brought

against congress, it next turned its attention to other companies.

Perhaps it was thought promotive of the interest of this corporate

power, now controlling the government, that there should be unity of

action and purpose; that its strength should be so great, and its

ramifications so extensive, that neither private persons nor the public

would dare to resist its demands. The necessity for a railroad from the

Atlantic to the Pacific states was not the only consideration

influencing the law-making power of the country. This fact is clearly

apparent from the provisions of the charter, for numerous branch or

spike roads are included in the charter, and provided for in the land

grants and subsidy bonds.

Let us look at the "Central Pacific railroad company," of California.

This company received its charter from that state, was duly organized,

and as we are informed, was at work on its road when the charter was

granted by congress to the "Union Pacific." But congress, not to show

partiality, in the ninth section of the charter of the Union Pacific,

provides for the Central Pacific as follows:--

"The Central Pacific railroad company, of California, a corporation

existing under the laws of California, is hereby authorized to construct

a railroad and telegraph line from the Pacific coast, at or near San

Francisco, or the navigable waters of the Sacramento river, to the

eastern boundary of California, upon the same terms and conditions, in

all respects, as are contained in this act for the construction of said

railroad and telegraph line first mentioned, and to meet and connect

with the first mentioned railroad and telegraph line on the eastern

boundary of California."

Here is a company building its road exclusively in a single state, under

a charter derived from a state having the exclusive control of its own

affairs, and not subject to the legislation of congress, or the

administration of the general government, like the territories; yet

congress, that it may aid a great monopoly, assumes control of the

matter, reaches out its hand laden with the people's land, and the

people's money, and says to this California company: "If you will unite

with and become a part of this giant monopoly we are creating to crush

the people, and will accept the provisions of this act and render fealty

to the general government as the 'higher power,' we will give you twenty

sections of land, and subsidy bonds to the amount of sixteen thousand

dollars per mile, with the privilege of issuing your own first mortgage

bonds for an additional sixteen thousand dollars per mile for every mile

of road you build in the state of California." Of course this California

company accepts this tempting offer, and in addition to the fifty

thousand of subsidy bonds for sixteen thousand dollars each to the Union

Pacific, an additional sixteen thousand dollars per mile is issued to

the Central Pacific, all of which, as we will show, principal and

interest, will in the end come out of the pockets of the people. The

uniting of these two companies, and the completion of their roads and

telegraph lines, afforded to the country and the government (provided in

all cases they paid to the companies the amounts they charged therefor)

a road for the purpose of travel, and transportation of freights, and

secured a _"safe and speedy transportation of the mails, troops,

munitions of war, and public stores thereon,"_ and if the construction

of the road was aided for that purpose, it would seem to have been

accomplished, and as a matter of justice to the public, no further

burdens should have been imposed upon the public. Two companies had been

provided for at the people's expense, and all that was demanded for the

prosecution of the public business had been effected. But there was

danger that other through lines of railroad might be constructed across

the territories that might become rivals of this giant monopoly. The

Hannibal & St. Joseph railroad company were across the state of

Missouri, looking to the west. The Leavenworth, Pawnee, & Western

company were preparing for action. A road was crossing Minnesota and

Iowa to strike the Missouri river at Sioux City. Any or all of these

roads might become rivals. To prevent such a catastrophe, and to retain

for all time to come an absolute and exclusive monopoly, these companies

must be absorbed, or at least rendered harmless. To assist this scheme,

congress is called upon for further aid from the public lands and

treasury. The response is all that could be desired. It gave the final

blow to competition, and left the people powerless in the grasp of this,

the greatest monopoly in the country. A monopoly created by the servants

of the people, and enriched with spoils taken from the people, in

violation of every principle of right and justice, had been created by

act of Congress, and to insure it the absolute control of the country,

anything promising competition must be absorbed. To accomplish this

object, the same act, section nine, provides: "That the Leavenworth,

Pawnee, & Western railroad company, of Kansas, is hereby authorized to

construct a railroad and telegraph from the Missouri river, at the mouth

of the Kansas river, on the south side, so as to connect with the

Pacific railroad of Missouri to the aforesaid point, on the

one-hundredth meridian of longitude west from Greenwich, as herein

provided, upon the same terms and conditions in all respects as are

provided in this act for the construction of the railroad and telegraph

line first mentioned, and to meet and connect with the same at the

meridian of longitude aforesaid; and in case the general line or route

of the road from the Missouri river to the Rocky mountains should be so

located as to require a departure northwardly from the proposed line of

said Kansas railroad before it reaches the meridian of longitude

aforesaid, the location of said Kansas road shall be made so as to

conform thereto; and said railroad through Kansas shall be so located

between the mouth of Kansas river as aforesaid, and the aforesaid point,

on the hundredth degree of longitude, that the several railroads from

Missouri and Iowa herein authorized to connect with the same can make

connection within the limits prescribed by this act, provided the same

can be done without deviating from the general direction of the whole

line to the Pacific coast."

It will be seen that one of the rival lines is given a premium of lands

and bonds to intersect with the Union Pacific near the east end thereof;

it becomes, for a consideration, a part of this great monopoly, and

abandons all idea of competition.

Section ten provides for a union or consolidation of the Union Pacific,

the Central Pacific, the Leavenworth, Pawnee, & Western, and the

Hannibal & St. Joseph companies; and section thirteen provides: "That

the Hannibal & St. Joseph railroad company, of Missouri, may extend its

road from St. Joseph, via Atchison, to connect and unite with the road

through Kansas, upon filing its assent to the provisions of this act,

upon the same terms and conditions in all respects, for one hundred

miles in length next to the Missouri river, as are provided in this act

for the construction of the railroad and telegraph line first mentioned,

and may for this purpose use any railroad charter which has been or may

be granted by the legislature of Kansas." The section also provides for

connecting this road with the main line. This company promised to be a

rival, but when congress is appealed to, $1,600,000 in subsidy bonds,

and two thousand sections of land are given it as its share of the

spoils, provided it will accept this trifle as an inducement to combine

its interest with this great corporation. This disposes of all rivals

south of Omaha. True the people have paid dearly for it. They, through

their servants in congress, have enriched a lot of unscrupulous men,

banded together for the purpose of plundering the public, and given to

these corporations the power to oppress the people for all time to come;

but as it affords a safe means of transporting the mails, &c., for a

consideration which the people must pay as the services are rendered,

the public should not complain. Congress thought the matter so important

as to require the gift of vast sums of the public moneys, and princely

donations out of the public domain, and as our legislators acted for the

people, and the companies have built their roads, the public must

submit.

But there was danger that the roads crossing Iowa and Minnesota might

compete with the Union Pacific. Sioux City was an objective point on the

Missouri river. West of that city, across the then territory of

Nebraska, a road could be constructed at comparatively small cost. This

line might become a rival, and it also must be absorbed. To effect this

object, the following provision was made a part of the fourteenth

section of this act: "And whenever there shall be a line of railroad

completed through Minnesota or Iowa to Sioux City, then the said Pacific

railroad company is hereby authorized and required to construct a

railroad and telegraph line from said Sioux City, upon the most direct

and practicable route, to a point on, and so as to connect with, the

branch railroad and telegraph line in this section hereinbefore

mentioned, or with the said Union Pacific railroad, said point of

junction to be fixed by the president of the United States, not farther

west than the one-hundredth meridian of longitude aforesaid, and on the

same terms and conditions as provided in this act for the construction

of the Union Pacific railroad, as aforesaid, to complete the same at the

rate of one hundred miles per year." The amendment made to this part of

the act in 1864, to which we shall refer in another chapter, materially

changes its provisions; and as we examine these provisions, we will

discover that all the unjust donations made of the public lands and

moneys are exceeded in this amendment.

Now, if the reader will take a map on which the railroads are marked, he

will discover that from Leavenworth to Sioux City all the railroads

running west are concentrated into one line, after leaving the

one-hundredth degree of longitude--the Burlington & Missouri railroad

company being made by the act of 1864 a part of the same great monopoly.

By the exclusive franchises and imperial wealth conferred upon it by

congress, this great corporation is given control, absolute control of

the business interests of the great west. This grand system of railroads

looks well on the map, and lends color to the plea that the wants of the

public and of the government justified this large outlay of money and

lands; but an inspection of the act chartering the companies,

consolidating them, and by law giving them unlimited control of the

interests of the public, will convince the impartial reader that the

interests of the companies, rather than the needs of the government, or

the welfare of the people, controlled the action of congress.

Grants of lands and exclusive privileges have been made to other

corporations, as also to states, for the purpose of aiding in the

construction of railroads; but our aim being to combat the policy

itself, as involving gross injustice and oppression, and to show its

effects upon the public, we have selected the Union Pacific and its

branches as the best illustration of the action of congress in making

these grants, and the companies owning this road and its branches as a

fair sample of the class of professed benefactors of the people.

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