The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1870-05-31

to make this grant when the General
Assembly of Oregon shall have confer
red upon this corporation the capacity
to receive it.
That, then, is my fist objection The
power given to this corporation, as
stated, is the usual power to hold real
estate necessary for the purposes of the
road. That is all of it. Not the least
power, by any fair Interpretation, to be.
come the greatest dealer in real estate
to be found in Oregon; not one word OF
that.
Then, sir, / have other objections to
the bill apart from the general question
involved in it in regard to the policy OF
granting lands. 1t was said the other
day when this bill was up that there Is a
provision in it that removes one of the
most serious objections made to all 9TH
er bills of this kind, and that that pro-
vision is that the land granted to the
company shall be sold to actual settlers
and to no other persons. Now, if there
is an effectual provision of that kind in
the bill, one that can be made operative
and that cannot be defeated, it is certain
ly a great Improvement upon any bill of
this kind that has heretofore passed
Congress. But is that the fact? Is it
the fact that this bill does secure to ac-
tual settlers as well the land granted to
the railroad company as the land retain
ed by the United States? ] ain very
much afraid there is not. Although
that provision is contained in the fourth
section of the bill, yet the fifth section,
very obscurely drawn, provides, upon
any fair Interpretation that l can give it,
that the company shall be authorized to
execute q first mortgage, and that with
out limitation, and therefore first mor..-
gage of the very land that we here grant
and after having executed such first
mortgage, there is provision that the
net proceeds of the lands shall 60 to
certain trustees in another mortgage for
the purpose of creating a sinking fund.
But suppose the first mortgage be crca-
ted and the condition be broken, ,and the
mortgages do not see fit to await the
tardy operation of this sinking fund,
what then? Then, sir, they go into the
courts of Oregon, foreclose their mort
gage, and sell the property, and then
what becomes of the provision that the
land granted can only be sold to actual
settlers? Defeated, sir; completely de-
feated.
And now, with the experience that we
have had, with the fact staring us in the
face that according to the statistics of
railroads constructed in the United
States, more than nine out of every ten
have been sold under their mortgages
upon DEGREES of foreclosure, or by trus-
tees, aud with this uncertain enterprise
through an unknown country, are we
prepared to say that this road, which Is
to be made through wilderness, which
we are told has not twenty miles ofpop-
ulated country upon it; this mere exper
iment, this road that is to be made where
there are no trade and population to
support il; are we prepared to say that
there is no danger that it will ever be
sold under its mortgage, and that, there
fore, the provision that the land shall be
sold to actual settlers will be carried in
to effect? l do not think one of us can
say so. Therefore, it does seem to me
thai if this fifth section shall stand as il
is, the provision that the land shall be
e,Id 70 ootu,l s,ttlorc u,,Il rooroal,y nc
worth the paper an0 ink with which it is
printed.
There, sir, are objections wholly ire
spective of the policy of making sucl
grants: first, that the corporation has
no power to accept the grant, and that
it will be time enough for us to make Q
donation like this when the State of Or.
egon shall authorize the corporation to
accept it; and secondly, that this pro-
lection to actual settlers is rendered nu-
gatory by the mortgaging power which
seems to be contained in the bill.
Here l wish, however, to say in re-
spect to this mortgage, that / find nc
clause in the charter Of this company
which authorizes it to make mortgage
There is certainly no express power to
borrow money and pledge the property
of the company which has been constru
ed to contain power to mortgage. I'm
der the general power to purchase and
convey real estate, contained in the char
tel, such as may be necessary for the pur.
poses of the company, it has again and
again been decided by the courts
that there is NO mortgaging power what
soever; and therefore / do not find in
this charter any power for the company
to mortgage its. property. 1t may be
that there is such thing in the laws oi
Oregon, but If so it has escaped my
search. If that is not the case, then
wish to put this question to the gentle
man who has this bill in charge: where
does he get the right of Congress to add
to the faculties of State corporation
and confer upon it power to mortgage
its property when the State charter, un-
DER which alone it lives and has its be-
ing, confers no such power?
Itmay be said that it is a condition
upon which this grant is made that the
company shall execute such a mortgage.
You may, of course, make this grant
conditional; but the condition must be
one that the grantee is able to execute,
able to perform. That is plain enough
law. Any condition that this company
by its charter has capacity to perform,
that you may make condition of your
grant; but you cannot make that con
dition which the grantee has no legal
capacity whatever to perform. There
fore it will not do to say that here is a
provision that will give any security at
all, if it is to depend entirely upon the
operation and effect of an act of Con-
gress. You must point out in the char
ter granted by the State, and by which
and undsgwisa this corporation alone
has an existence, the power, or the pow
er does not exist say. then, that this
provision in the bM which recognizes q
mortgaging power is all a nullity, unless
you can show that by the charter of this
company it has the power to execute
such mortgage; and ! have looked in
vain for any such power. But if am
wrong IN all this, if the company has