The Placer herald., 1864-10-08
MINORITY REPORT OF THE BOARD OF
SUPERVISORS OF PLACER COUNTY
ON THE CENTRAL PACIFIC
RAILROAD.

TO the Board Of Supervisors and to the Citiz c,,s
Of Placer C0untY
A S PRESIDENT OF THE BOARD OF SU-
IA PERVlSORS of your county, and by law
entrusted with the responsible duty of guarding o
the interests of the county, have felt tiny duty
TO lay before you statement Of my official action
as a member of the Board while acting as Com
mitce to examine the books OF the Central Pacific
Railroad Company of California. The duty is
| to me. one of extreme decacy and unpleasant
! ness, inasmuch as my relations towards shat Com
pany, a majority of its officers and managers.
have been, and still are, of the most friendly
character; but my Judgment debating that my
public relations should outweigh all feelin
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 and the
manner OF its appointment, deem necessary for
a more perfect understanding Of the subject:
The county Of Placer is stakeholder in the
Central Pacific Railroad Company to the extent
OF $250.0O0. upon which it is paying an animal
interest Of $4,000. .hc subscription having been
made by the issue Of county bonds. redeemablc in
twenty years from date. After the year 1868. a
special annual railroad tax was to be levied as q
sinking fund TO redeem said bonds and accruing
interest The county holds It's stock as all other
stockholders, and the Board Of Supervisors have
all the rights appcrtainng to the other sharehold-
eIs of the capital stock. Thus it becomes their
terest and welfare the county is so deeply inter-
escd manages its affairs with honesty and tidel-
ty, and applies its revenues and resources in such
manner as not only in as speedy a manner rs
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
vtally interested, but also that the stock should
as soon as possible become remuDerative by the
declaration OF dividends, so as to tighten our
county from the burden Of continuous and ruin
ion tG4,, cd
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 prodigul
issue and use OF stock for Illegal PURPOSES want
Of good faith in their intention of pushing for
ward The work to 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
vsors deemed that an investigation made by them
into these matters. ana 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
thcr cavii, and resulted equally to the advantage
of the Company and the county. The Board,
therefore, in the first place. appointed a special
committee of two. and selected for that purpose
the Hon }. +. 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 and 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 Att rney, appeared before
the Board and most urgently sought the rescind-
ing ot the resolution, averIng that the eXamin,l
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 any other parties than the Board
themselves This application, pressed upon the
Board in the most fOrclble manner 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 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, 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 ncces-
sary investigation. On stating to the Secretary, |
Mr.. Miller, the object Of our visit Mr.. Hopkins,
one OF the mcmbers Of the Company, enquired if
the Board had made out any definite course by |
which they intended to conduct the examination; |
"hcn ne was informed oy me- 'hat uS /" ni'golity
OF the Board mad declined 10 OBTAIN ellher the
services OF theIr own Clerk, or some other com
petent expert to conduct Inc examination ior
them. had prepared series ol questions Wnich
desired to receive answers to, and information |
upon. so that might report the same to the citi-
zens OF the county, III the form OF report Inc
questions were then produced. read and copy
taken by the Secretary. "hllG discussing the
matter with that oilccr' several OF 'ne members
OF the Board oil Directors OF the Company joined
in the discussion, and from the character ana 'one
OF their remarks soon gave me TO understand,
not only that the information should not Oe lur-
nished, or the questions answered III uli' bus hat
should If persisted IN ehdcaVoIlng TO make
the investigation, be subjected 10 series OF pelty
personal insults, with a view OF enoeaVoTihS TO
force me to abandon the eNalhatloh' III 'hlS
view was more 1ully cohnimed' "hcn one OF my
colleagues suggested ihat II ne were Sl'u'teo as l