Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1888-01-18

eXcent to themselves III tnelr c0nstr1c-
ton; that they need regard no interest
but their own, and that they were lasti-
fed in contracting with themselves and
making such bargains as resulted in con-
veyiDg to their pocKets all the assets of
the companies. As a lienor the govern
ment was vitality interested in the amount
OF mortgage to which its security lad
been suoordinaied, and it had right to
insist none OF the bonds secured By thia
prior mortgage should be issued fraudu
lently or for the purpose of division
among these stockholders without con-
siderstion. The doctrine of complete in
dependence on the part OF the directors
OF these companies and their freedom
from any obligation to care for any
other interest than their own in the con-
structiOn Of these rOSds seems 10 have
developed the natural consequences OF
its application portrayed as follows in
nslority report OF the Commissioners :
'!Tne result Is that those who have co.,
trolled and dir cted the construction and
development CT these companies have be-
come possessed Of their surplus assets
through the issues Of bonds snd stocks
and the payment OF dividends voted by
themselves while the great creditor, the
United States, finds itself substantially
without adequate security for repsy-
ment Of its loans" The laws en-
acted in aid Of these roads, while they
illustrated profuse liberality and gener-
Gus surrender OF the governments sd
vaDtages, which il is hoped experience
hiss corrected, WAS nevertheless passed
upon the theory that the roads should be
constructed according
TO TIE COMMON RULES OF BUsIEKss,
fairness and duty, and their value and
their ability 10 pay their debts should not
be impaired by unfair manipulations, and
when the government subordina.ed its
lien to smother it was in expectation that
the prior lien would represent 10 it's
amount only such bonds as should be
necessarily issued by the companies
for the construction OF the roads st fair
prices agreed upon in an honest way
between real and substantial parties for
the purpose Of saving or improving tie
security afforded By it's prior lien. The
government should have tight row to
purge this paramount lien Of all thSt is
fraudulent, fictitious or unCons clonsble.
Ii transfer TO innocent hands Of bonds
Of this character, secured by such first
lhOltSoSSf tlACtL SoANSIAhlISHS 4
might be well to seek g remedy against
those who issued and transferred them.
IL LEGISLATION IS NEEDED
to secure such remedy, Congress caa
readily supply it. desire to call after
ton to the fact that il all that was
to be done on the part of the government
to fully vest in these companies the
grants and advantages contemplated by
the acts passed in their interests has not
yet been perfected, and il the failure Of
such companies to perform IN good faith
their part OF the contract justifes such a
course, the p0Wer rests with Congress to
withhold further performance on the part
OF the government. II the donated lands
are not yet granted to these companies,
and il their violation of contract and Of
duty are such as in justice and morals
forfeit their rights TO such lands, con-
gresslonal action should intervene TO pre-
vent further contamination.
Speaking Of the Cslifornia and Oregon
Railway. now part OF the Central Pacific
system, the President says some of it's
land grants are not yet made and he asks
Congress il it should not intervene. Pro-
ceeding he Gays: Any proceeding or ar
rapgements that would result now or any
other time in putting these roads or any
portion of them in possession and control
of the government / in my opinion, TO be
ejected-certainly as long SIS there is the
least chance for decentralization
through any other means.
suppose We are hardly
justified in INDUCING Irritation and indig-
nation naturally arising from the contem-
plation Of malieasancs to such al extent
that would lead to the useless destruc-
tion OF these roads or the loss CT sd-
vances made by the government. l be-
lieve that our efforts should te in more
practical action, and should tend, with
no condemnation Of wrong doing, to
the collection by the government on be-
half OF the people OF the pub
lie money now in Jeopardy. The fact
will not escape attention that the success
of the majority plan depends on its &C
ceptance by the companies and their abil-
ity to perform its conditions after accept.
ance. 1t is possible that the remedy pro-
posed in the rasjority report might well
be applied to part only Of these aided rail-
way companies. The settlement and de-
termination OF the question involved are
peculiarly within the province Of Cen.
gress. Public interests urge prompt End
efficient action.
GROVER CLEVELAND.