Iron County register., 1888-01-26
THE PACIFIC RAILROADS

1he Presidents Message to Congress.
~ ~ansfnlttng the Reports of the Special
racine Railroads Coinmission-Pron,n MT
and Efficient Action Urged tn Protect tLa
Government. o
"AsHINGToN, Jan. i7.-The President
to-day transmitted to Congress the re-
ports or the special Pacific Railroads Com
Inission' accompanied by a message in
which he saws:
inese reports exhibit such transactions and
sehemes connected with the construction of
ehe aloeo reads and their management and
suggest the invention of such devices ON the
part of those having them in charge. for the an,
parent purpose of defeating any chance for the
Sosernments reimbursement, that any ADJUST.
meht or plan of settlement should be predi-
cateu upon the substantial interest of the Gov.
eminent rather than any forbearance or gener.
oslty deserved by the companies The condi
tlon OF the present management of the Union
racine Company has an important bearing m
on its ability to comply with the terms of any
settielnent OF Its Indebtedness which may be
onered by the Government.
After referring in detail to the yarious
grants and benefits derived from the gem
eral government by the Union and Gem
Tal Pacific companies. the President con-
tinues:
The liberal donations, advances and priv
leges provided for by this law were granted by
the Government for the purpose OF securing the
construction of these roads, which would COM
piete the connect on between our Eastern and
western coasts; and they were based upon a
consideration of the public benefits which would
accrue to the entire country from such con-
struction. But the projectors OF these roads
were not content. and the sentiment which then
seemed to pervade the Congress had not reached
the limit of its generosity. Twoyears afterthe
passage OF this law it was supplemented and
amended in various important particulars in
favor OF these companies, by an act which pro-
Tided, among other things that the bonds at
the rate already specified should be delivered
upon the completion of sections OF twenty
miles In length instead of forty; that the lands
to be conveyed to said companies on the COM
pletion of each section of said roads should be
ten sections per mile instead of five: that only
half of the charges for transportation and serv-
ice due from time to time from the United
States should be retained and applied to the
advance made to the said companies by the
Government, thus obliging immediate pay
ment to its debtor of the other
half of said charges, and that the lien OF the
United States TO secure the reimbursement of
the amount advanced to SAID companies in
bonds-which lien was declared by the law of
1862 to constitute a first mortgage upon all the
property of said companies-should become a
junior lien and be subordinated to mortgage
which the companies were, by the amendatory
act, authorized to execute to secure bonds,
which they might from time to time issue, i'll
States bonds which should be advanced to
them. The immense advantages to tina
companies Of this amendatory act are
apparent, and in these days may we'll Won
der that even tie anticipated public impor
tance OF the construction OF these roads induced
what must now appear to be rather reckless
and unguacded appropriation of the public
domain. 1t IS almost needless to state that the
companies have aVailed themselves to the ut
most extent of the permission given them to
fSSuP and Il prt crarr
erty to secure the payment Of the same, by
ineumbrance having preference of the Govern
mcnt's lien and precisely equal to it in amount
After some Ia ther pointed comment on
the manner in which the directors have
bargained so as to convey to their pockets
all the assets of the companies, the Presi-
dent commends the condition of affairs to
the attention of Congress, and concludes
his mes sage as follows:
1t is quite time that the troublesome compli-
cations surrounding this entire subject which
has been transmitted to legacy from
former days, should be adjusted AID settled.
No one, think expects that these railroad
companies will be able to pay their immense
Indebtedness to the Government at Its ma
turitY. Any proceeding or arrangement that
would result now, Or at any other time, in put
ting these roads, or any poi tlon of them, in the
possession and control of the Government,
is. in my opinion to be rejected, certainly
long as there Is the least chance Tor ndemnifica-
uOn through otler means. NEiie the plan pre-
sented by majority of the commission appears
to be well devised, and gives at least, partial
promise of the results sought the fact will not
escape attention that its success depends upon
its acceptance by the companies, and their
ability to perform its conditions after accept
ance. II is exceedingly important that any ad- t
justment now made should be final and effect /
i've These considerations suggest the ,
possibility that che remedy proposed in the /
majority report might well be applied to part !
only of these aided railroad companies. The |
settlement and deterh nation of the questions :
involved are peculiarly wIthfn the province OF
the Congress. The subject has been made /
quite familiar by Congressional discus
sion, and this is supple mented in valuable /.
manner by the facts presented in the reports
herewith submitted. The public interest .
urges prompt and efficient action
lSigned.1 GROVER CLEVELAND.
January Il, 1888.