Wessington Springs herald. (Wessington Springs, Aurora County, Dakota [S.D.]) 1883-1891, 1888-02-10
THE PACIFIC ROADS,.
A. Message from President Cleve-
land to Congress on the:
Subject.
Astonishing Features Of tho Admins
tration of the. Affairs Of the.
Companies.
The Governments Rights-sug-
gestions as to Necessary.
Legislation.
The Cancellation OF Unpa!cnted' Land
Grants Is Urged Upon
Congress.

The following is the. Presidents message
transmitting the Pacific railroad reports to
Congress.
To the senate and House Of Representatives:
On March 3 Inst an net was passed authoriz-
ing the appointment Of three Commissioners
who should investigate such railroads as have
ment. Among othor things, the contemplated
investigation included history of the con-
struction OF these roads, their relations and in
debtedness to tho Government, and the ques-
ton whether in the interest of the United
Stutes any extension of tho time for the per-
torrance of the obligations of said roads to the
said Commissioners were directed to submits
scheme for such extension The Commission
ers were further directed by said act TO report
i'll full to the President upon all the matters
submitted to them. and he was by said uct,
required to forward said report to Congress-,
with such recommendations or comments as he
should see fit to make in the premises.
Tho commissioners, Immediately after their
selection, entered upon the discharge Of their
duties, und have prosecuted their inquiries
with commend ble industry intelligence, and
thoroughness. large amount of testimony
has been taken, and all the fucts have been
developed which appear to be necessary for
the condition of these aided railroads and their
relations to the Government. The commits
sioners have however, been unable to agree
upon the manner in which these railroads
should be trented respecting their Indebtedness
to the United States, or to unite upon the plan
best calculated to secure the payment of such
suited in the preparation of two reports.
both of which are herewith submitted to the
Congress. These reports exhibit such transact
lions and schemes connected with the construc
ton Of the aided roads and their management,
and suggest tho invention of such devices on
the port of those having them in charge for the
apparent purpose of defeating any chance for
the Governments REIN bursement, that any adj
justment or plan of settlement should be pred
icated upon the substantial interests Of the
Government rather than any forDearance or
generosity deserved by the companies. The
wide publication which has already been given
to the substance of the Commissioner reports
obviates the necessity of detailing in this COM
munication the facts found upon the investiga-
ton.
methods adopted by those who formerly had
charge of the Union Pacific Railroad, declares
that since its present management was inauga-
rated in 1854 its affairs have been fairly and
ministration has devoted itself honestly and
intelligently to the herculean task Of rescuing
the Union paGihe Hallway from the insolvency
OF its work that 1t has devoted itself, by rigid
| economy, by intelligent management, and by
IN application of every dollar OF the earning
betterment, to place that company on O sound
and enduring financial foundation
Tho condition Of the present management OF
the Union Pacific Company has important
bearing upon its ability to comply with the
terms of any settlement Of it's Indebtedness
The majority Of the commissioners are in favor
| of an extension Of the time for the payment of
the Government indebtedness of these
| companies upon certain conditions. But
the chairman of the commission. presenting
the minority report, recommends, both upon
principle and policy, the institution of pro-
| ceedings for the forfeiture of the charters
of the corporations, and the winding up of their
affairs. Ihave been furnished with q state.
ment, or argument. in defense of the transac-
| Union Pacific Road and its branch lines from
which it may not be amiss to quote, Tor the
purpose OF showing how some OF the operations
of the Directors Of such road, strongly con-
demned by the Commissioners, are defended
by the Directors themselves. After speaking
| of contract for the construction of one OF
| these branch lines by u corporation called the
| Contract and Finance Company owned by Ger.
tain Directors of the Central Pacific Railroad,
| this language is used
| 1T may lie said of this contract, as Of many
| others that were let to the different construc.
ton companies in which the directors Of the
Central Pacific were stockholders, that they
| built the roads with.the moneys furnished by
themselves, and had tho road for their outlay.
In other words, they paid to the construction
constructed, and wateduntil such time as they
| could develop sufficient business on the road
built - induce the public to buy the bonds o,
the stock. If the country through which the
project was success; if it did not then the
operation was loss These gentlemen took
necessarily theirs and Of right tho profit be-
longed TO them. But it is said they violated a
well-known rule of equity in dealing with
themselves, that they were trustees, and thai
they were representing both sides of tho con.
tract The answer is that they did not find
| anybody else to deal with They could
not find anyone who would take
the chance OF building road through
what was then an almost uninhabited country
and accept the bonds und stocks Of the road il
payment. And when it is said that they orc
trustees, if they did occupy such relation it was
merely technical; for they represented only
their own interests on both sides, there being
no one else concerned in the transaction They
kecume tho incorporates of the company that
was to build the road. subscribed for It's stock
and were the only subscribers. Therefore, it is
| difficult to see how anyone was wronged by
their action. The rule of equity invoked, which
has its origin i'll the injunction, No man can
serve tive masters, certainly did not npply tt
them, because they were acting in their own in
terests, and were not charged with the duty O.
caring for others rights, there being no othel
persons interested i'll the subject matter"
In view of this statement and the facts devel
oped in the commissioners report it seemi
proper to recall the grants and benefits
derived from the General Government by
both tho Union and Central Pacific
companies for the purpose of aiding
the construction of their roads. By an nct
passed in 1862, it was provided that there should
be advanced to said companies by the United
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