Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1888-01-18
PRESIDENTS MESSAGE.
Continued from First Page.

Continued from FIRST Page.
ton called a contract and finance COM
pany, owned by the directors Of the Cen
trail Pacific Railroad, this language is
used: at may be said CT this contract as
OF many others tnat were let TO different
construction companies in which the di-
rectors OF the Central Pacific have been
stockholders, that they built the rosds
with moneys
FURNISHED BY THEMSELVES
and had the road for their outlay. In
other words they paid to the constructors
OF the line the bonds and stocks Of the
railroad so constructed and waited until
such time as they could develop sufficient
business of the road built to induce the
public to buy the bonds or stock. Ii the
country through which the road ran de-
veloped sufficient business, then the pro-
ject was success; If it did not, then the
operation was loss. These gentle men
took ali the responsibility. Any loss was
Of necessity theirs, and Of right profs be-
longed to them. But 1t is gsid that they
violated we'll known rule Of equity in
dealing with themselves, that they were
trustees, and that they were representing
both sides of the contract. The
answer is that they did not
and anybody else to deal with.
II ey could not aad anyone who would
take their chances of building rcai
through what WAS then .n almost unin-
habited country and accept the bonds and
stock of the road in payment, and when
it is said that hey were trustees IL they
did occupy such relation it was merely
technical, for they represe pted Only their
own interests On both sides, there being
no one else concerned in the transaction.
They became incorpor.toIs of the COM
pany that was to build the road, sub
scribed for its stock and were the only
subscribers; therefore, 1t is difficult to
see how
ANYONE WAS wRONGED
by their action. The rule Of equity In
voked, which has it's origin In the iDjunc-
ton that NO man can serve two masters,
certainly did not apply to them, because
they were acting In their own interests
and were not charged with the duty OF
caring for others rights, there being no
other persons interested In the subject
natter"
In view Of this statement and the facts
developed in commissioners reports, it
seems proper TO recall the grants and
benefits derived from the general govern
ment by both the Union and Central
PsciRc Companies1or the purpose OF aid
ing the construction of their roads. By
an act passed In 1852 it was provided
that there should be advanced to said
companies by the United States to aid
such construction bonds of the govern
ment amounting to Sl6, 900 for every mile
COZ structed IS often IS section OF forty
miles OF said roads should be built; that
there should also be granted to said COM
panies upon the completion of every said
section of forty miles Of road five entire
sections CT public land for each mile so
built; that the entire charges earned by
said roads on account Of trans
portation and serving for the government
should be applied to the enhancement
of bonds advanced By the United States
AMI interest thereon, and that to secure
repayment of the bonds SO advanced end
interest the issue and delivery TO said
companies OF ssid bonds should ccnsti-
tute
FIRST MORTGAGE
on the whole line of roads, and on their
rolling stock, fixtures and property OF
every kind and description. Liberal do
nations, advances and privileges provided
for in this law were granted by the gener
81 government for the purpose of securing
the construction OF these roads,
which would complete connection
between our eastern and western coasts,
and they were leased upon consideration
Of public benz fits which would accrue to
the entire country from such construc-
ton. But the projectors of these roads
were not content and the sentiment
which then seemed to pervade Congress
had not reached the limit Of Its generosi-
tY. Two years after the passage OF this
law it was supplemented and amended in
various important particulars in iavor Of
those companies by sn sct which provid-
ed among other things that bonds at the
tate already specified should
be delivered upon the CON-
pletion Of sections Of twenty miles
in length instead of forty; that the lands
to be conveyed to said companies on the
completion CT each section Of said road
should be ten sections PEI mile instead Of
FIVE; that only half Of the charges for
transportation and services due from
time TO time from the United States
should be retained and applied to sd
vances. made to said companies by the
government, thus obligirg
IMMEDIATE PAYMENT
to the debtor of the other half Of said
charges, and that the lien Of the Uuited
States to secure reimbursement OF the
smount advanced to said companies in
bonds which lien was declared by the law
of 1862 to constitute first mortgage up
on all the property Of said companies
should become junior lien and
bt subordinated to mortgage
which the companies were by amendatory
act authorized to execute to secDre the
bonds which they might from time to
time Issue in sums not exceeding the
amount OF UDitad States bonds which
should be advanced to them, The i'm
mense advantages to the.compsnies of this
amendatory act are. apparent, and in
these days We may we'll wonder that even
the anticipated public Importance of the
construction of these Soads induced what
must now appear to be rather q
RECKLESS AND UNGUARDRD
appropriation of public funds and public
domain. Tnder the operation Of these
Laws the principal of the bonds which
have been advanced is S64, 023,5l2 as
given in the reports of the commissioners.
The intere st to November /, 1887, is cel