Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1888-01-26
SPECIAL MESSAGE.

EfEa,lon.
WASHINGTON, Jan 18-The following is
the Presidents message Transmitted to
Congress on the Pacific railroad investiga-
6on:
20 Tie Ss,-ns and House of Re1resenscs;ves:
On March last an act was passed authoriz-
1ng the appointment of three Commissioners
who should Investigate the affairs of such rail-
roads as have grants of land from the United
States Government
The Commissioners, Immediately after their
election, entered upon the discharge of their
duties and have prosecuted their inquiries with
intelligence and thoroughness. A large amount
OF testimony has been taken and all the facts
nave been developed which appear TO be neccs-
sary for the consideration of the questions aris-
ing from the condition of these aided railroads
and their position toward the Government.
The Commissioners have, however, been una
Ole TO agree on the manner in which the rail-
roads should be treated respecting their indebt-
cdness TO the United States, or to light upon
the plan best to secure the payment of such in
debtedness. This disagreement has resulted IN
the preparation of two reports, both of which
are herewith submitted.
These reports exhibit such transactions and
schemes connected with the construction OF the
aided roads and their management and suggest
the invention OF such devices on the part OF
those having them in charge for the apparent
purpose OF defeating any chances for the Gov
ernments reimbursement, that any adjustment
or plan of settlement should be predcated upon
the substantial interests of the Government
IA her than any forbearance or generosity de-
served by the companies.
The wide publication which has already been
given to the substance OF the Commissioners
reports obviates the necessity OF detailing in
this communication the facts found upon the
Investigation. The majority report, while con
'nemn.ng the methods adopted by those who
formerly had charge of the Union Pacific rail
road, declares that since its present manage
znent was inauguratsd. in 1884. its affairs have
been fairly and prudently conducted, and that
the present administration has devoted
itself honestly and intciligenty to the
Herculean task of rescung the Union Pa
cific railroad from the insolvency which
seriously threatened 1t at the inception OF its
work; that 1t has devoted itself by rigid econ
Omy, by intelligent management and by an APP
plication of every dollar of the earning capac-
ity OF the system to its improvement and bet
terInent to place that company on sound and
enduring financial basis.
The condition OF the present management of
the Union Pacific Company has an important
bearing on its ability to comply with the terms
OF any settlement OF its indebtedness which
may be offered by the Government. The ma
fority OF the Commission is in favor OF an eX-
tension 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 re-
port, recommends, both upon principle and
policy, the institution OF proceedings for the
forfeiture of the charters of the corporations
and the winding up of their affairs.
have been furnished with statement
or argument in defense OF the trausac-
tions connected with the construction OF the
central Pacific road and its branch lines.
In view of this statement and the facts devel-
oped in the Commissioners reports it seems
proper 10 recall the grants and benefits derived
from the General Government by both the
Union and Central Pacific Companies for the
purpose OF aiding the construction of their
roads. BY the act passed in 1862 it was pro
vided that there should be advanced to said
companies by the United states to aid such
construction the bonds OF the Government
amounting TO $4,000 for every mile constructed
as often as section OF forty miles OF such
roads should be constructed that there should
also be granted 20 said companies upon the
completion of every said section of forty miles
OF road FIVE entire sections OF public land for
each mile so built; that the entire charges
earned by said roads on account OF transporta-
slon and service for the Government should be
applied 10 the reimbursement of the bonds ad-
vanced by the United States and the interest
SheJDCn: and that TO secure the repayment OF
The bonds SO advanced and interest the issue
and delivery to said companies OF said bonds !
should constitute first mortgage on the
whole line of their roads and on their rolling
stock. fixtures and property OF every kind and
description. The liberal advances and priv
caeges provided for in this law were granted by
the General Government for the purpose of
securing the construction OF the roads. which
Eastern and Western coasts and they were
based upon consideration OF the public bene
hts which would accrue TO the entire country
erom such construction. But the projectors of
these roads were not content, and the sentiment
which then seemed TO pervadc Congress had not
after the passage OF this law it supple
mented and amended in various important par
ficuiars in favor of these companies, by an act
which provided among other things that the
nj r1ll ed no
delivered upon the completion OF sections of
aYenty miles in length instead of
forty; that the lands to be conveyed
10 said companies on the compile
zion OF each section OF said roads should be ten
sections per 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 the advances
made TO such companies by the Government.
ythnS oblig1ng immediate payment TO the debtor
OF the other half of said cha ges; and that the
lien of the United States TO secure the re-
endorsement of the amount advanced to said
companies in bonds which lien was declared
SY the law OF lSi2 to constitute u first mortgage
upon all the property OF said companies should
become Junior lien and be subordinated to a
mortgage which the companies were, by the
act, authorized to execute 10 Sc
cure bonds which they might. from time to
time issue in sums not exceeding the amount
of tho United States bonds which should be adj
Eanced 10 them.
The immense advantages to the companies OF
this amendatory act are apparent. and in these
days we may well wonder that even the antici-
patcd public Importance of the cone truction of
these roads, induced what must now appear TO
be \ rather reckless and unguaried appropria-
ton OF the public funds and the public land.
Under the operation OF these laws the principal
OF the bonds which had been advanced Is Ssj4,-
023,512, as given in the reports OF the Commits
sioners; the interest to November /. 1897 is
calculated to be S.6.02i. S06.5S making an aggre-
gate at the date named OF SD .047, 7IS.5S. The
interest calculated to the maturity of the bonds
added to the principal produces an aggre-
gate OF Sl16,SSf, so. Against these amounts
shere has been repaid by the Com
panics the sum of $50. ,5.0S9 81. It is almost
needless to state that the companies have
awaited themselves to the utmost extent of the
permission given them 10 issue bonds aad to
mortgage their property to secure the payment