Custer chronicle. [volume] (Custer City, Black Hills, D.T. [S.D.]) 1880-1890, 1888-01-28

lien, and precisely equal to 10 IN amount.
When the relations created between tba GOV
eminent and these companies by the Lgista-
ton referred 10 il considered, II IS astonish-
ing that claims should be made that the
directors OF these roads owed no duty except
to themselves in their construction; teat they
need regard 10 intrcstn but their pgn, anss
that they were justified in contracting WITH
themselves and making such bargains as re
suited in the conveying to their pocket OF
all the assets III the companies rs Uener,
The government was virtually interested H..
the amount Of the mortgage to which its So
curity lien was subordinate, and il had the
right TO insist that none Of the bonds sccurea
by this prior mortgage should be issued fraud
uIently or for the purpose OF division Among
these stockholders without consideration.
The doctrine Of complete independence on
the part Of the directors Of these companies
and their freedom Of any obligation ~ ears
for other interests than their own i'm the con
s~truc!ion OF these roads seems to have deye-
lopcd the natural consequences IF its applna-
tion, portrayed IA follows In tho majority re-
port OF the commissioners: 'rhe rcsult e..
that those WHO have controlled and directed
the construction and development Of these
companies have been possessed Of their sup
plies Of assets through the issue Of bonds,
stocks and the dividends voted by thCmselyea,
while the great creditor, the United States,
fluids itself substantially without adequate
security for the rfdayment Of It's loan.o
Referring to il, The president said: For the
purpose OF saving or improving the security
afforded by It's junior lien the government,
should have the right now 10 purge this para
mount lien OF all tnat is fraudulent delicious
and unconscionablc If The transfer Of inuD-
cent bonds OF this character, secured by a first
mortgage, prcyents their cancellation, Il
might well seem that this IL the remedy against
those issued and transferred to them. IL eg-
~islation is needed to secure such remedy, cen
gress can supply il.
IL regard 10 the Land which had not yet
been granted 10 these roads, the PRESIDENT
said:
II the failure of such companies to perform,
in good faith their part Of the contract iRsti
tied such course, the power rests with cUngrsrs
10 withhold furtatr performance on the part
OF the government II the donated lands are
not yet granted 10 these companies, and II
their violation Of the contract and duty aTe
such AZ, in justice and morals, to forfeit their
rights 10 such lands, congressional actisn
should intervene to prevent further Consnm-
nation. The executive power must be exnp-
cised according 20 existing laws, and exneuttye
discretion is probably not broad enyushts
reach such difficulties.
The California and Oregon railroad rs nov
a part Of the Contra! Pacific system, and b "A
land grant road. It's construction has been
carried on with the same features and Incl
dents which have characterized the olhcr con
structions Of this systcm, as Ia made appar-
ent on pages -, - ard SO Of the report OF the
majority Of the commissioners. I have in my
hands the report Of the commissioners ap-
pointed To examine two completed sections %
this road. Upon such approval the corn
pany, or the Central Pacific company, win be
entitled TO patents for a large quantity Of
public lands. j especially commend To the
attention Of congress this condition Of ~afIaira,
in order that it may he determined whether
or not it should intervene TO save these lande
for settlers, if such course is justifable.
But il is quite time that the troublesome
complications surrounding this entire sgbjsct,
which has been transmitted TO us a az Legacy
from former days, should be adjusted apR
settled. No one, | think, expects that these
railroad companies viii be able 10 pay their
immense Indebtedness 10 the government ~
It's maturity. Any proceedings or arrange
ment that would result now or at any other
time In putting these roads, or any portion Of
them, Ia possession or control Of the govern
nent liz, in my opinion, 10 be rejectcd-cer-
tainly az long AZ there il any chance for La
identification through any other means.
| suppose We are hardly justified IN induig
ing the irritation and indignation naturally
arising from a contemplation Of maIfCasaDce
to such an extent as to lead 10 TIE useless DO
s~truction Of these roads, or the loss Of the
advances made by the government. l believe
that our efforts shouid be In a more p~raeticaf
direction, and should tend with no eoDiewna-
ton Of ~wrong-doing, 10 the collection Nv The
government, on behalf Of the people, OF the
public money now In jeopardy. While thG
plan presented 6y a majority Of tho esnn,is
sion appears 10 BE- well devised, ana gives al
least "A partial promise Of the res'l.s sought
the fact Will not escape attention THAI lie sue
cess depends upon its acceptance. 1t Is IN
: ceedingly important that any ahjustmept.noS
E made should toe final and effective. fh1s,
{ considerations suggest the AdyisabiLity TIA
the remedy proposed ia the minority vspor
might well be applied io o part only OF th,s'
: aided railroad companies. The settlement
ana determination Of H.. questions ~involves
: are peculiarly within the province ofcopgyess
The tuhjcct h8a been made a quite fartiita'
one by rougrct si0nal discussion; this IA Boy
supplemented III "A valuable manner by tbi
1 facts prescntcd in the reports herewith ert
mitted, and ubhc interest urges prompt ap,
. ,ficit III action.
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