The immense advantages to the companies of this amendatory act are
apparent; and in these days we may well wonder that even the anticipated
public importance of the construction of these roads induced what must
now appear to be a rather reckless and unguarded appropriation of the
public funds and the public domain.
Under the operation of these laws the principal of the bonds which
have been advanced is $64,023,512, as given in the reports of the
commissioners; the interest to November 1, 1887, is calculated
to be $76,024,206.58, making an aggregate at the date named of
$140,047,718.58. The interest calculated to the maturity of the bonds
added to the principal produces an aggregate of $178,884,759.50.
Against these amounts there has been repaid by the companies the sum
of $30,955,039.61.
It is almost needless to state that the companies have availed
themselves to the utmost extent of the permission given them to issue
their bonds and to mortgage their property to secure the payment of the
same, by an incumbrance having preference to the Government's lien and
precisely equal to it in amount.
It will be seen that there was available for the building of each mile
of these roads $16,000 of United States bonds, due in thirty years, with
6 per cent interest; $16,000 in bonds of the companies, secured by a
first mortgage on all their property, and ten sections of Government
land, to say nothing of the stock of the companies.
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