Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1888-01-20
yITALLY INTEREsTED

In the amount of the mortgage to which
Its security has bsen subordinated and it
had the right to insist that noue OF the
bonds secured by this prior mortgage
should be issued frsudulently for the pur-
pose of division among these stock hold
erS without q consideration. A doctrine
of complete Independence on the part of
the directors of these companies and
their freedom of any obligation TO care
for other IL eerests than their own in the
construction of these roads, seems TO
have developed. The natural conse-
quenceS of its application is portrayed as
follows in the majority report of the
commissioners:
The result is that those who have CON
trolled and directed the construction and
development of these companies have
been possessed of their surplus assists
through issues of bonds, stocks, snd the
payment of dividends voted by them
selves while the great creditor, the United
States, finds itself substantially without
adequate security for the repayment Cf
its loans.
For the purpose of saving or irproy
ing the security afforded by its junior
liens, tho government should have the
right now to
PURGE THIS PARAMOUNT LIEN
of all that is fraudulent, fictitious and
unconscionsble. If the transfer to iU
nocent hands of the bonds of this charac-
ter, secured by first mortgage, prevents
their cancellation, it might well seek
remedy against those who issued and
transferred them. If legislation is reed
ed to secure such remedy, congress can
supply it."
In regard to the land which had not yet
been granted these roads the president
said:
"lt the failure of suca companies to
perform in good faith their part of the
contract justified such a course, the
power rests with congress TO Withhold
further performance on the part of the
government.
"It the donated LANDS are not yet grant
ed to these companies, and If their viola
tion of contract and duty are such as, in
justice ana morals, forfeit their rights 20
such lands, congrt ssional action should
intervene to
PREVENT FURTHER CONSERVATION.
The executive power must be used accord
ing to existing laws, and executive dscre-
tion ls probably not broad enough to reach
such difficulties. The California Oregon
r. h. is now a part of the Central Pacific
system, and is land grant road. its
construction has been carried on with the
same features and incidents which have
characterized the other constructions of
this system, and is made apparent on
pages rs, 70 and so of the report of the
majority of the commissio | have
IN my hands the report of
the commissioners appointed to examine
the two completed sections OF this road.
Upon such approval the Central Pacific
company will be entitled to patents for n
large quantity of public lands. |
especially commend to the attention of
congress this condition of affairs in order
that it may determine whether or not it
should intervene to save these lands for
settlers if such n course is justihabe.
''It is quite time that the troublesome
complications surrounding this enuire
subject which has been transmitted to u.s.
legacy from former days,
SHOULD BE ADJUSTED,
and settled. No one, l think, expects
that these railroad companies will be able
TO pay their immense Indebtedness to the
government at its maturity. Any pro
ceeding or arrangement that would re
suit now or at any other time, in putting
these roads, or any portion of them In
the possession and control of the
government ia, in my opinion, to be re-
jected-certainly as long IA there
is the least chance for indemnifiCation
through other means While the plan
presented by majority of the commits
sion 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 dpon its accept
ance by the companies and their ability
to perform its conditions after accept
ance. 1t is exceedingly important that
any ad ustment now made should be
final and effective. These considera-
tions suggest the possibility that the
remedy proposed in the majority report
might well be applied to part only of
these aided railroad companies. The
settlement and determination of the
questions involved are peculiarly within
tie province of the congress. The sub
iect has been made quite a familiar one
by congressional discussion, this ID now
Supplemental in a valuable manner by
the facts presented in tho reports here
With submitted. The public interest
urges prompt and efficient aston.
Jen. II, 1888.
(Signed), GROVER CLEVELAND"