The Placer herald., 1864-11-12
MINORITY REPORT OF THE BOARD OF
SUPERVISORS OF PLACER COUNTY
ON THE CENTRAL PACIFIC
RAILROAD.

70 the Board Of Supervisors and to the Citix en-,
Of Placer County:
A 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 tiny duty
10 lay before you statement Of my official action
as member of the Board while acting as Com
mittee 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 that Com
pany, q majority Of its officers and managers
have been, and still are, of the most friendly
character; but my judgment dictaeing that my
dublc relations should ever outweigh all feelings
Of o mere personal nature, l have been induced
to action in this matter, as my duty has suggest
ed. A short preliminary history Of the reasons
| for the appointment Of the Committee and the
manner OF its appointment, deem necessary for
q more perfect understanding Of the subject:
| The county of Placer is u stockholder in the
Central Pacific Railroad Company to the extent
| of 200. upon which it is paying an animal
interest of $4,000. The subscription having been
made by the issue of county bonds, redeemable in
| twenty years from date. After the year 1868. q
special annual railroad tax was to be levied as q
| sinking fund to redeem said bonds and accruiDg
interest. The county holds it's stock as all other
| stockholders, and the Board Of Supervisors have
all the rights appertaining to the other eharehold
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 SO deeply inter-
ested. manages its affairs with honesty and fidel-
ty, and applies its revenues and resources in such
manner as not only in AS speedy a manner as
possible carry out 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, but also that the stock should
MS soon as possible become remuneratve by the
declaration Of dividends, so as to tighten our
county from the burden of a continuous and ruin.
GUS taxation. Actuated by these principles, and
also impelled by the fact that numerous reports
were in circulation throughout the county detri-
mental to the interests Of the Railroad Company,
founded upon the assertions that the Directors of
the Company have, in many instances. acted in
bad faith towards the Company, through contracts
entered into by them the improper and prodigal
issue and use Of stock for illegal purposes. want
of good faith in their intention Of pushing for
ward The work 10 the State line at as early day
as possible. favortism shown by the Directors to-
wards the Directory in the allotment of contracts,
lavish expenditure of the funds of the Company,
and other improper acts. The Board of Super
visors deemed that an investi igation made by them
into these matters. and report thereupon 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
ther cavil and resulted equally to the advantage
of the Company and the county. The Board,
therefore. in the first place. appointed special
committee of two, and selected for that purpose
the Hon. J. + Hale and the Hon. F B. Higgins
| both gentlemen of the highest moral standing in
the county and eminently qualified, from their
business qualifications faithfully aud efficiently to
discharge the duty assigned to them
After this action had been officially taken by
the Board. the Railroad Company, through its
Superintendent and Attorney, appeared before
the Board and most urgently sought the rescind-
ing Of the resolution, averring that the examina
ton would. for various reasons, be highly detri
mental to their interests, and would affect their
various fiscal negotiations then in progress; and
particularly did they object to the Investigation
being made by aly other parties than the Board
themselves. This application, pressed upon the
Board in the most forcible man ner possible, and
upon assurances that if the Board would under
take the duty, the utmost facilities should be af-
forded to them. the Board was induced to with
draw from its former action and constituted
themselves as q Committee for the purpose of
said examination. Thus it will be seen that this
position was not courted by the Board, or sought
after but forced upon them, as it were, by the
express request of the Railroad Company. On
the 9th day of September the Committee met at
Sacramento City, and repaired to the Office of the
Railroad Company, prepared to make the neces
sary investigation. On stating to the Secretary
Mr.. Miller the object of our visit. Mr.. Hopkins
one of the members of the Company. enquired if
the Board had made out any definite course by
when he was informed by me, that as majority
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, aud information
upon. so that might report the to the citi-
zens 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 the 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 be fur
nshed, or the questions answered in full, but that
should, if persisted in endeavoring to make
the investigation, be subjected to series of petty
personal insults, with a view of endeavoring TO
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 would return to his home. Not
feeling satisfied. however. to permit such unbe
coming conduct to withdraw me 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, abandon the inquiry; and that from
their actions WAS more than ever satisfied of the
necessity of the proposed examination. |, Mt the
same time stated that. my friendly relations to-
wards the railroad enterprise were we'll known
and that it rested with them whether the enemies
OF the o. mpany should have the opportunity OF
injuring the road in public opinion through their
refusal of atfording their stoc khoaers proper and
legitimate information. On again demanding the
privilege of inspecting the company's books,
WAS shown the stock hook, and 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 ineligible report to
you) was peremptorily forbidden to make any
such. then asked to see the record of corpora
ton debts. This was, with reluctance. shown to
me, and again was refused the right to abstract
anything from 1t in the way of information
suppose that light have had permission to have
read the various entries, had been so disposed:
but moments reflection will show that such
privilege was nothing but mockery rs no mem
ory would be competent to charge itself with the
various entries therein contained or by it's lid
alone furnish statement in any manner reliable
or Ineligible. This action on the part of the H.
rectQrs aunea sed To mo tho -