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party manager or the people misled by him? A system of government like that of Canada which places the responsibility on a body of legally constituted advisers of the crown, or in other words a committee of the legislature, has clearly enormous advantages in the case of appointments to public office over a system like that of the United States which spreads responsibility over so wide a surface that no one may be reached.

The writer believes, after giving much consideration to this important subject, that it would be indeed an unhappy hour for the good and efficient government of Canada, were the intelligence of any section to be so blinded as to lead it away from the sound doctrines that have hitherto preserved us from the evils which have weakened the political structure of the Federal Republic. If in a moment of indiscretion any Canadian legislature were to yield to the ill-advised demands of party in order to obtain a temporary political advantage, and attempt the experiment of the elective system in the case of the officials whose tenure of office is now a matter of deliberate inquiry, it would be literally the thin edge of a wedge which would gradually and surely split up the durable foundation on which government rests. The history of the American States very clearly shows that when you once give certain privileges and rights to a people it is not possible to withdraw them directly and immediately. No politician would dare now to ask for such constitutional changes as would suddenly sweep away the entire elective principle in the case of all national and State administrative, executive and judicial officers, except the president, vice-president, governors, lieutenant-governors, and political heads of departments who occupy positions somewhat analogous to those of ministers of the crown but without their responsibilities.* All that may be attempted

"The great number of candidates for election confuses and disgusts the voters in much the same degree that it makes the business of caucus management intricate, active and profitable. The election of such officers as constables, county clerks, secretaries, justices and judges, whose functions are in no sense

is to curtail and modify those privileges from time to time, as has already been done in the case of municipal elective officers and of the judiciary. If once in Canada the elective principle were applied to sheriffs, registrars and a few other officials in the province, it would not be long before a politician would make himself popular by extending the system to police magistrates, and all classes of officials. In all probability, the pressure would be so great even on the Dominion parliament that it would have great difficulty in stemming the torrent that provincial indiscretion might set flowing by the removal of those wise barriers which sound policy has heretofore raised up against popular and party license. A federal union rests on a broad basis of states or provinces and the political conditions of every state or province must more or less, sooner or later, influence those of the federation or dominion to which those states and provinces give life and union. Once adopt the elective principle generally in the provinces, it is obvious the consequences would be most serious to the Dominion. The result would be that Canada would be no longer English as respects a fundamental principle of government. She would become Americanized by the adoption, not of those features of the system of her neighbors which might give her additional strength and unity, but rather of those methods which would be more or less destructive of political morality and in direct antagonism to those principles of sound and efficient government which true Canadians are ambitious to see gather force while they are laboring to establish on durable foundations a new nationality on this continent.


House of Commons, Ottawa, Canada. representative, and who were appointed until the spoils system had become established, is indefensible upon any sound principles. The changes that made them elective were naturally desired by all those interested in the patronage of party chieftains or gains of primary elections. To make the re-appointment of such officers safe and satisfactory, we must reform the civil service. To relieve the primary system of the demoralizing duty of selecting officers in no sense representative, and only ministerial and administrative, we must make such officers again appointive." D. B. Eaton in "Cyclopædia of Political Science," Art. "Primary Elections."


The thirty years' term of the original loan of the United States to the Pacific Railroad has rolled round, there matured January 16, 1895, the first installment of bonds issued to the Central Pacific Railroad Company for the first piece of road built and accepted under the act; during the years 1896, '97, '98 and '99, chiefly in 1898, other installments fall due, aggregating in all $64,623,512.* These six per cent bonds are a full obligation of the United States, as between the holders and the maker; there is nothing for the Treasury to do, but to pay them, or to extend them on acceptable terms. Since they are security for circulating bank notes the latter course can easily be followed, at not more than three nor less than two per cent, at the convenience of the Treasury, and these need give us no further concern here.

But as between the maker of these subsidy bonds and the companies who first received them they constitute a debt nominally due and payable by the latter, or their successors, together with arrearages of interest also advanced, and only in part reimbursed by transportation services, or provided by sinking fund accumulations. The amount of this arrearage may now be closely approximated, and it is evident that, dealing with all the debtor companies together, it will fall not far short of the principal sums, or about $125,000,000 in all, of which fully $70,000,000 will be for the Central Pacific and $55,000,000 for the Union. The exact figures at any given date cannot be stated with precision on account of the mass of counter-credits for services delayed, disputed or otherwise in suspense. Indeed, certain judgments for large aggregate amounts, not subject to application on these debts,

* The repayments by services in the twenty-five years of through operation equal one-fourth only of the interest disbursements or about one and a half per cent per annum on the debt.

CONDENSED STATEMENT, showing bonds issued in aid of Pacific Railroad Companies and the

amounts reimbursed thereon as certified by the United States Treasurer at

close of business, November 30, 1894.

UNION PACIFIC (Inc. Kansas and Central Branch).


Principal, Interest paid by United States,

. $35,139,512 55,829,069

Total disbursed,

. $90,968,581

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. $24,525,032

By cash per cent of net earnings,



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The Sioux City and Pacific, 100 miles (leased by the Chicago and Northwestern), $1,600,000 bonds may be ignored. The Central Branch Company is controlled by stock ownership, but road has been leased to the Missouri Pacific Company. Forecasting the further interest payments, with deductions for services and sinking funds to maturity, the balance may be estimated at $55,000,000 for the Union, and $70,000,000 for the Central. The latter will, however, have sinking funds for prior lien bonds to an amount approximating $15,000,000.





are nevertheless withheld as offsets to this accruing claim of the government.

By the Act of 1862 construed literally these advances were secured by a "first mortgage" (subsequently in 1864 waived) upon the condition that "said company shall pay said bonds at maturity" and that on a failure or refusal to redeem said bonds or any part of them, when required to do so, the United States might take possession of the aided property for its own use and benefit. There are other complicated provisions for partial current payments for service and in onetwentieth of the "net earnings." It is evident that these cautionary clauses were properly introduced to secure something beyond and more important than the return of the face value of the bonds and interest at a given date, viz., the early completion of the road through, or, that failing, the control of the corpus, and if need be, its transfer to other hands. Although following the formula of indentures to secure the return of money, the acts and successive amendments, their titles and the whole scope and purpose was rather to ensure the doing of certain work without delay, the creation of the road, its use, enjoyment and prestige rather than the customary loan of money for hire. A generation has passed since the contract was made, but it must be construed with the lights then before the parties.

This view is borne out by reference to the emergency of the time and the antecedents in military and postal transportation. The supply of Rocky Mountain forts, and a scanty overland mail had cost as much as $7,200,000 a year, while animal power was employed and while the government was insurer of the freight. It is fair to assume that the expectation of the parties was that the government patronage would itself so expand after completion of the roads, as to cancel the current interest, $3,900,000 per annum, and that the subsequent participation in the net earnings, in the course of the eighteen or twenty years allotted, would be so considerable as to liquidate the principal sums, or nearly so. That both

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