The Placer herald., 1864-11-26
MINORITY REPORT OF THE BOARD OF
SUPERVISORS OF PLACER COUNTY
ON THE CENTRAL PACIFIC
RAILROAD.

CAN 4&AA OI/Av AAA 1 xANAx Az
RAILROAD.
7c fhe Board of Supervisors and to the Citizens
Of Placer County:
r S PRESIDENT OF THE BOARD OF SU-
IA PERVISORS of your county. and by law
entrusted with the responsible duty of guarding
the interests of the county, have felt it my duty
10 lay before you a statement OF my official action
rs member of the Board while acting rs Com
mttee to examine the books OF the Central Pacific
Railroad Company of California. The duty is
to me one of extreme delicacy and unpleasant
ness, inasmuch as my relations towards :lnt Com
pany. majority of its officers and managers,
have been, and still are, of the most friendly
character; but my Judgment debating that my
dublic relations should ever outweigh all feelings
OF Il mere personal nature. have been induced
to,action in this matter, as my duty has suggest
ed. short preliminary history OF the reasons
tor the appointment of the Committee aud the
manner Of its appointment. deem necessary for
a more perfect understanding OF the subject:
The county Of Placer is stockholder in the
Central Pacific Railroad Company to the extent
Of $250000, upon which it is paying an ANIMAL
interest of $4,000. :he subscription having been
made by the issue of comfy bonds redeemable in
twenty years from date. After the year 1868. Il
special annual railroad tax WAS to be levied as a
sinking fund 10 redeem said bonds and accruing
interest. The county holds its stock as all other
stockholders, and the Board of Supervisors have
all the rights appertaining to the other sharehold-
ers of the capital stock. Thus it becomes their
special duty to see that the company in whose in
terest and welfare the county is 50 deeply inter
ested. manages its affairs with honesty and tilel
ity. aud applies its and resources in such
a manner lis not only in rs speedy 4 manner aS
possible carry ont the great work in which it
is embarked, the completion of which the State
at large. and the county IN particular are so
vitality interested. bat also that the stock should
| ns nOS,iblp bpCOmn vpmuunrltiVp by the
declaration of dividends. to tighten our
county from the burden Of Il continuous and ruin
Gus taxation. Actuated by these principles and
also impeled by the fact that numerous reports
were in circulation throughout the county detr-
mental to the interests OF the Railroad Company
founded upon the assertions tn the Drec tors Of
the Company have, in mlny instances. acted in
bad faith towards the Company, through contracts
eptered into by them. the improper and prodigal
issue and OF stock for Illegal purposes. wAnt
of aool faith in their intention OF pushing for
ward he work TO the State Iiue at as early a day
as possible. ttvorllism shown by the Directors to-
wardA the Directory in the allotment OF contracts
lavish expenditure of the funds Of the Compluy,
and other improper acts. The Board OF Super
visols deemed that an invest cation made by them
into these matters. ana report thrreupon to you
in the event of the same proving satisfactory
which AT that time the Board had no reason to
doubt. would have placed the matter beyond fur
thcr Cavil. aud resulted equally TO the advantage
0l tre company anu tue county. Inc DOltt,
therefore, in the first place, appointed special
committee of two, and selected tor that purpose
the Hon j. L Hale aud the Hon. F. B. Higgins,
both gentlemen of the highest moral standing in
the county. and eminently qualified, from their
business qualifications faithfully and efficiently to
disch lrge the duty assig gned to them.
After this action had been officially taken by
the Board, the Railroad Company. through its
Superintendent and Att rney. appeared before
the Board and most urgently sought the rescinl-
ing of the resolution. ayerting that the examnl
ton would. for various reasons. be highly detr-
mental to their interests and would affect their
various fiscal negotiations then in progress and
part cultrly did they object to the investigation
being made by ahy other parties than the Board
themselves. This application, pressed upon the
Board in the most forcible mlnner possible, and
upon assurances that if the Board would under
take the duty, the utmost facilities should be af-
fordel to them. the Board WAS induced to with
draw ii ON its former actton. and constituted
themselves as Committee for the purpose of
said examination. Thus it will be seen that this
position not courted by the Board, or sought
after. but forced upon them ~ it were, by the
express request Of the Railroad Company. On
the 9th day Of September the Committee met at
Sacramento City. and repaired 10 the Office OF the
Railroad Company, prepared to make the neces-
sary nve>iig tion. On stating to the Secretary.
Mr.. Miller, the object OF our visit. Mr. Hopkins
ore of the members of the Company, enqured if
the Board had made out any definite course by
which they intended to conduct the eYamlnlton
when he informed by me, that as m jority
OF the Board had declined to obtain either the
services Of their own Clerk or some other com
petent expert to conduct the examination for
them. had prepared a series OF questions. which
| desired to receive answers to. and information
upon. so that mi ght report the same to the cit-
Gems OF the county, in the form of report, The
questions were then produced. read and copy
taken by the Secretary. While discussing the
matter with that officer several of the members
OF he Board Of Directors OF the Company Joined
in the discussion. and from the character and tone
Of their remarks, soon gave me to understand,
not only that the Information should not hc fur
nshed, or the ques ions answered in full but that
| should il persisted in cndeavorng to make
the investig ,tion. be subjected to a series of petty
| personal insults with view OF endeayoring 10
force me to abandon the examination. In this
! view was more fully confirmed, when one of my
colleagues suggested that If he were situated rs
were, that he woHld return TO his home. Not
| feeling satisfied. however. to permit such unbe.
coming conduct to Withdraw mo from the dis
| charge OF my duty, informed the parties that |
had come to'the Office for the purpose OF obtain
ing answers to my questions, and that until had
received them or their refusal, ! should not, from
any cause, abtn1on the inquiry; and that from
their actions was more than ever satisfied OF the
necessity OF the proposed examination. |. at the
same time stated that. m7 friendly relations to-
wards the railroad enterprise were we'll known
and that it rested with them whether the enemies
OF the mpany should have the opportunity Of
injuring the road in public opinion, through their
refusal OF alforiihg their soc ckholrers proper and
! legitimate information. On again Gemi udng the
privilege OF inspecting the companys books, |
was shown the stock hook, aud on proceeding to
make some extracts from it (Which alone would
have enabled me to have obtained data where
with to make any kind of inlellg gble report to
you.) was percmptorily forbidden 10 make any
such. then asked TO see the record Of corpora
tion debts. This was, with reluctance. shown to
me, aud again was | refused the right to abstract
anything from ii in the way of information. |
suppose that might have had permission to have
read the various entries. had been so disposed
but a moments reelection will show that such
privilege was nothing but a mockery, as no mem
DRY would be competent to charge itself with the
various entries therein contained, or by its aid