Mr. HOWARD. This bill was reported to the Senate by the ComPacificRR several weeks since. The object of it is to set aside an order made by President Lincoln, dated the 24th of December. 1864, giving to the Sioux City Railroad Company the right to construct what is known as the Sioux City branch of the Pacific railroad. The order to which I refer is found in Document No. 14 of the Executive Documents of the present session. It is as follows: Whereas the Sioux City and Pacific Railroad company, a companyorganizedunder the laws of Iown. M requested the POTUS to designate said company "for the purpose of constructing and operating a line of railroad and tele graph from Sioux City to such point on and so as to connectwith. the Iowa branch of the Union Pacific railroad from Omaha or the Union Pacific railroad. as such company may select:" the "fore c it known, That by the authority conferred upon the POTUS by the 17 thsectionof the act of Congress approved July2, 18ti4.enlitlod “ An act to amendan act to pid in t to construction of arailroiul and telegraph line from the Missouririver to the Pacific ocean." &c., I. Abraham Lincoln. POTUS do herebydesignate the said Sioux City and Pacific Railroad Companyfor the purposeabove nientoned. ABRAHAM LINCOLN. December”, 1864. That order, it will be observed. was dated the 24th of December, 1864. By the 14th section of the Pacific railroad act of 1862, the Union Pacific Railroad Company was bound to construct a branch from Sioux City, upon the most direct and practicable route, to a point on the Iowa branch or on the Pacific railroad, not further west than the 100th de recof longitude. It will be seen that this O ause of the act of 1862 m ide it. obligatory upon the Pacific Railroad Company to construct this Sioux City branch; but by the act of 1864, amendatory of the Pacific rai road act of1862, the Union Pacific Railroad company was relieved of the obligation to build it; and the amendatory act provided as follows: “That whenever a line of railroad shall be completed through the State of Iowa orMinnesotn to Sioux City. such company.now organized or as may heroiillor be organized underthe lawnof Iowa. Minnesota Dakcia, or Nebraska. as the POTUS by its request, may designate or approve for that purpose shall constructand operate a lineof railroadand telegraphfromSioux City, uppn theine st dircot and pructica ile route.to such a point on and so as to connect with, the Iowa brunt lief the Union Pacific railroad from Omaha or the Union Pacific railroad, as such companymay select, and on the same terms and conditionsus are provnlod in this act and the act to which this is an amendment, for the construction of the said Union and Pacific railroad and telegraph line and branches; and said company shall complete the sameat the rate of filly miles peryear.” such was the amendatory act of 1864, but the amendatory not also adopted the principle of not allowmg the Government bonds to issue on account of the road be pad the 100th degree ofion itu e. The company might extend its we further west, but it would not be entitled to the aid of bonds, but only of alternate sections of land on each side of it. That was the effect of the amendatory act of 1864 compared With the original act. The language 01 the amendulory act I refer to the 17th section of that act, which I might, perhaps, as well read is as follows: " SEC.17. Abife: That so muchof section 14 of said not us relates to n.branch from Sioux City be and themoreis hereby, amended.0 na to read as follows: that whenever a line of railroad shall be completed through the State of Iowa or Minnesota to Sioux City such company.now organized, or as may hereafter be organized under the laws of Iowa, Minnesota, Dakota or Nobrlsko, as the POTUS, by its request may designate or approve for that our use, shall constructand operatea line ofrailroiid an telegraph from Sioux City. upon the most direct and practicable route, to such a point on and so as to connect with. the Iowa branch of the nion Pacific railroad from Omaha or the Union Pacific railroad. as such company may select and on the same terms and conditions as are provided in this not, and the act to which this is an amendment, for the construction of the said Union and Pacific railroad and telegraph line and branches and said companyshall complete the sameat the rateof filly milesperyear: Provided. That said Union Pacific Railroad Companyshall be and is hereby.rclcused from the constructionof said brunch and said companyconstructin said branch lhiill not be entitled to receivein bon s an amount larger than the ffilld Union Pacific Railroad company would be entitled to receiveifit had constructe the branch under this act and the act to which this is an amendment; but said companyshall be entitled to receive alternate sections of land for ten miles in width on each side of the snme alen the whole liefngthof and brunch: and provided urifher.That a railroad should not be completedto Sioux City, across Iowa or Minnesota, Within 18 months from the date of this act. then said company designattid nubeyatmhede President.haese aofonrsetrsuacidti.omnay commence, as contemplated by the provisions of thoisfsaucidt.branch It was under that section that President Lincoln made the order designating the Sioux City and Pacific Railroad Company as the corporation to construct the Sioux City branch. according to the construction which I put upon the 17th section of the act of 1864, it was incompetent for the President to make an order designating any company for the construction of the Sioux City branch within the 18 months which were allowed by this 17th section. Nor was it. competent for him, as I understand the act, to designate any company for the construction of that branch until there should be a railroad running through either the State of Iowa or the State of Minnesota to Sioux City. The object of the Government was plain, to secure the construction of some railroad through Minnesota or Iowa to Sioux City, 50 as to form a connection at that point with the railroad system extending through Iowa, Minnesota, Illinois, Wisconsin, and Michigan, the purpose being, according to my view of the statute and the policy of Congress at that time, toestablish Sioux Cit as a kind ofcentral point. at which the railroad system of the northwestern States should form a connection with the Pacific railroad proper. Nevertheless, upon the up lication of certain gentlemen connected with the Sioux City Railroad Company, the President was induced to make whatl regard as a premature order in the premises, giving this privilege to the Sioux City railroad at. a period so early after the passage of the act as to cut oil" all fair and just competition between that company and ctfier companies for the construction of this road. It will be observed also that the very language of the 17th section, from which have read, requires this route, whatever company may attempt to construct the road upon it, to be on the most direct and practicable line. The words are, “ on the most direct and prac ticable route from Sioux City, ” to form a connection either with the Iowa branch, the Omaha brunch, socalled, of the Pacific railroad, or with the Pacific railroad properitself, in which latter case the junction would have been at, or westdof, the 100th degree of westlon gitu e. The Sioux City company seem to have been on the alert, and as early as June, 1865, about 6 months after President Lincolns order was issued, they filed a map of the route which they propose to follow through Sioux City westward to form the junction upon the Iowa or Omaha branch, with the line of the Union Pacific Railroad Company. I hold in my hand the map which was furnished the committee by the SecyInterior. The company in laying down the route of their road commence at Sioux City on the Missouririver. Instead of proceeding to the west, however, they proceed to the southeast. They run a distance of about 20 miles nearly south east in the State of Iowa. After reaching the most castornpoint of their route, they proceed to the south, and then to the southwest, crassing the Missouririver, run thence almost in a southwesterly direction, and terminate at the little village of Fremont, in Nebraska Territory, between the Platte river and the head waters of the Elkhorn river, a distance in the whole of at least 95 miles, formingasort of ox bow; proceeding 1st to the southeast, then to the south, and then to the southwest; and at Fremontthey form a connection with the Omaha branch of the Pacific railroad. When they have reached Fremont, they have made a westing from the point at which they started that is Sioux City, of nol: quite 5 miles; an the traveler and his freight, in proceeding from Sioux City to the Omaha bmnch, has been obliged to go at least 95 miles in order to proceed westward 5 miles. This circuit ous route makes 20 miles of casting into Iowa, 72 miles of soothing, and has a length from Sioux City to Fremont of at least 95 miles, as I have already remarked, and in running this distance they get west of Sioux City only 5 miles; that is, they run 95 miles in order to get for ward 5 milesl There is another view of this subject, Mr. President, which ought not tobe omitted. The Government. by the terms of the amended Pacific railroad act of 1864, lends its credit to the company, to the amount of $10,000 for each mile, amounting for the whole of this distance. calling the distance 95 miles an it is certainly, I lhink, greater than that to $1,520,000. Besides this, the company is to get the land subsidy along the whole of this ox bow line of 95 miles at the rate of 20 sections permile, amounting in all to 950 sections of land, or 608,000 acres, worth at the mininuni price $700,000. The committee, after looking this whole subject over and discussing it at several meetings, and after hearing men of experience acquainted with that part of the country, who made their statements on the subject, crime to the conclusion that the better way was to set aside the Presidents order of the 24th of December, 1864, and open this subject for competition between any companies that may see fit to compete for it. Of course, it does not belong to me to pass any censure upon the Sioux City and Pacific Railroad Company for udoptin this course, but I cannot omit to say that regard their conduct in selecting this circuit ous route through Iowa, thus increasing the distance for persons connected with the north western railroads and northwestern transportation very considerably, as a plain departure from the manifest intent and meaning of the law of 1864. What the northwestern States want particularly is as direct intercommunication with the Pacific railroad as is practicable; and they do not wishto be compel ed, in trav eling or in the transportation of their freight and merchandise, to pass over 100 miles distance upon a railroad which is entirely unnecessary so far as they are concerned; thus greatly increasing the expense of travel and transportation. The object of the bill is to set aside that order and open the whole subject for competition hereafter between the compa nies that may see fit to compete for the construction of this branch.