Mr. Presient, that estimate is upon the assumption that the Government will be called upon absolutely to pay the interestupon the principal sum which he hasmentioned for 20 years and receive nothing whatever in return. That is a pretty broad assumption. It is in effect imputing to this company a design to get the gudrantee of interest upon their stock, use their stock, build their road and neverpay the Government of the U.S. a sin is cent by way of reimbursement. Is that a air mode of treating such a company as this? Is it not probable, I submit to the Senator, that this company will under the bill be comelled from time to time to pay to the U.S. whatever they may receive for the lands lying on the south side of the route? Certainly they will be so compelled. The terms of the bill require it. The moment they sell the lands upon the south side of their route they are required by this bill to pay over the proceeds into the Treasury of the U.S. The Senator assumes that they will designedly cheat the U.S. by retainin the proceeds, which are a trust fund out of which payment is to be made. The Senator assumes urther that for the transportation which the U.S. will necessarily require of that company during the 20 years, we shall not receive a dollar from the company. Does the Senator suppose that the U.S. will have no transportation upon that route? If he will look at the statement made by General Meigs of the amount of transportation through that wilderness region (luring the year 1865, he will find that the U.S. in 1865 paid out more than 6 million dollars for freight on government stores and Government property of various kinds, all or a large portion of which would have been transporte over this road had it been built. The road is to be completed at the end of ten years; and after it shal have been completed, as it must be according to its charter within that time, then 25%. of the net earnings of the road is to be appropriated to the reimbursement of the U.S. on account of this interest. Sir, it struck me at the time that the honorable Senfrom Ohio was somewhat too venture us in his zeal against this bill in the statements he made. When examined in the light of the bill and of existing facts, it will appear that it van ishes into thin air, and that there is really no foundation for his assumption. Another objection raised by the Senator was, that at the time of the passage of the Northern Pacific railroad charter, in 1864, it was agreed between the company and Congress that the would never ask the U.S. for any cas subsidy. I was not in my seat at that time, and cannot, therefore, speak with confidence as to any assurances they may have given. It is sufficient, however, to refer to the charter itself, in which it is declared that no money shall be paid out of the Treasury of the U.S. on account of this road; so careful was Congress to guard the Treasury against any obligations or liability of this descrition. What are the facts? The charter of the nion Pacific railroad requires the Government to lend to that company and its 3 branches for every mile of road constructed, a sum 0 (not less than $16,000 to aid them in the prosecution of the work; and through the mount ain regions along that route the Government is required to lend them $48,000 permile for a distance of 300 miles in the whole. The liability of the U.S. under that charter, on account of the bonds it is to issue will not be less than $50,000,000, and will probably exceed that amount; while in ref erence to the Northern Pacific railroad the Government refused, in 1864, to lend them a single dollar, either in cash or credit. It is very true, as the Senator remarked, that congress gave to the company twice the of land permile on the Northern roaQuantity is possessed by the Union Pacific, in the be e, undoubtedly for it is not to be doubted that that was the hope and the expectation of congress that they would be enabled to proceed and finish this great and majestic undertaking solely by the proceeds of this liberal donation of land. But, sir, it has turned out to be an impossibility. The bonds of the U.S. which are issued to this Union Pacific Railroad Company and its branches are in the market, and are coming monthly into the market, and are there offered to capitalists, who lend their money upon them at a rate at which no other party can borrow that does not possess equal facilities. It is utterly impossible, for this reason, for the Northern Pacific Railroad company to go into the market and borrow money. So stringent was the charter which was passed in 1864 that it actually prohibits that company from mortgaging a single foot of its line from beginning to end for the purpose of raising money or any other purpose; while, at the same time that the Government makes this large cash subsidy to the Union Pacific railroad of $16,000 and $48,000 permile, it allows that company to mortgage its road, section after section, as the sections shall be completed, and actually postpones the claims of the U.S. as a creditor lending money, to the claims of private persons who become lenders upon the bonds of the Union Pacific Railroad Company and its branches. Under this state of things it is palpable to every man Who will reflect that it is totally impossible that the Northern Pacific can borrow money to such an amount and upon such terms as will enable it to proceed with its work. Now, sir, let it be clearly understood that the guarantee demanded of the Government by this bill is solely for the payment of the interest upon the stock of the company at 6%. a year as the various sections of 25 miles of road shall be completed. With the payment of the stock itself we have nothing to do. The bill requires no further liability from the Government than the payment of the interest of 6%. upon the stock as the various sections shall be completed from time to time, and it is not to be supposed that a road such as this will be when it shall be constructed, or when part of it shall be constructed, will be without revenue. persons who are acquainted with the character of northern men, persons who see the vigor and rapidity with which settlements are ressed forward into the far West, cannot dou tfor a moment that this road will be productive of revenue; I think, in the end, it will turn out to be as productive of revenue to the company as will be the Union Pacific railroad. I have before me a table containing estimates, made with as much accuracy as is attainable at the present time, as to the amount of the liability of the U.S. on account of this interest; and with the indulgence of the Senate I will read a single passage. It is a pamphlet prepared under the direction of the company, which has been examined by its engineer and indorsed by him as being correct and as certainly not exceeding the reality. "What, now is the extent of this liability, and how fast will it beincurred7" Which is certainly a very regnant question, and deserving of our consideration. ra“pTidoitya certain extent. this will do and upon the Supposinwgith which the road shall go constructed. that 150 miles upon the easternend befinishedat the closeof the year 1868, 100 more on the eastern and 50 on the western end in 1869 and the same in 1870.making 500 miles before the lst of January. 1871; and after that time 100 and tlft ymiles upon tahlleyeasterna nd 50 mileson the western end annu until the last year, when 300 miles will remain to hebuilt. the roadma beconstructed in ten years. the time prescribedby the charter. Taking this estimateas a.basis, the followin, figures will show the amount of stock upon which the guaranteeof the Governmentfor interest will attach, and the amount of interest for which liability will be iynecaurrsred until the expiration of the period of 30 50 miles eastern end, 1867.“ 824.900e.qual n on, t. a $3, 735,000in; terest. $224, 100!9 0 8 And so the table proceeds from year to year through to the year 1877, showing that the whole amount of stock, the interest upon which is to be guarantied, according to this bill, will not exceed the sum of $95, 710,000: and that the whole amount of interest accruing during of t. to be appropriated to the repayment of this in i terest on the completion of the road. Of course, that period, and for which the Government will be liable, isonlythe sum of $19, 836, 300. From and after that time, that is the end of the ten years, of course it will be impossible for this interest to increase. On the other hand, it would necessarily be diminished from year to year b the payment into the Treasury of the proce s e lands lying upon the south side of their route and by the 25%. of the net earnings of the road, which, by the bill, are it is not possible to make out an accurate and precise statement of the entire amount of government liability under this bill, for the location of the road has not yet been fixed. We do not know exactly what is to be its length; and it is impossible, from the nature of the case, to come at a perfectly correct conclusion as to the amount which we shall be compelled to payin the end; but, in my humble judgment, it 15not at all probable that at any time the Government will be called upon to pay more than 4 or 5 or 6 million dollars in an year during the existence of this loan; and think, on a careful examination of the data which have come within my reach, there is really no risk in the Government assuming the payment of this interest; but that, on the other hand, the Government will in the end be a great gainer, as will the people of the U.S. because it will have the effect to press forward settlement and enterprise into those remote regions. It will have an immediate effect to develop“ in to light the rich mineral treasures who or led be neath the soil of the Territories of a o “ tana, and Washington, through which this road will pass. In every point of view in which I am able to view, I t 'ink it a very necessary measure, and am quite sure that in the end Congress will find itself constrained to pass the bill, or some bill of this kind, to aid this company in the construction of this great work. As matters are now situated, as I remarked beforc, it is totallyimpossible for the company to raise money by loan in the markets and equally impracticable, forthem to sell theirlands to such an extent as to enable them to go on with the work. I hope, sir the Senate will take an intelligent, reasonable view of this matter and pass this bill.