Fort Worth weekly gazette. [volume] (Fort Worth, Tex.) 1882-1891, 1888-01-20
Text of the Presidents Message
Transmitting the Pacific Railway
Reports to Congress.
He Wonders at the Reckless and Tn.
guarded Appropriation Of Public
Funds and Public Domain.
He Is Nc. In Favor Of Gcyernms nt
Control. but Thinks Congress Can
Find Other means OF Redress
LIE PACIFIC RAILWAYS.


To the Senate and House of Representatives:
On the 3rd day of March last Cd at
was passed authorizing the appointment
of three commissioners who should in
vestlgate the affairs of such railroads as
have received aid from the United States
government. Among other things the
contemplated Investigation included q
history OF the construction Of these roads,
their relations an Indebtedness to the gov
eminent and the question whether, in the
interest OF the United States, any extern
sion of time for the perform
ance of the obligations of said roads to
the government should be granted,
and if so said commissioners were Gi-
rected 30 submit scheme for such ey-
tension. The commissioners Were further
directed by said act to report in full to
the President upon all matters submitted
to them and he wss by said act required
to forward ssid report to Congress with
such recommendations or comments as
he should see fl to make in the premises.
The commissioners Immediately after
! their election entered upon the discharge
of their duties and have prosecuted their
inquiries with commendable industry,
A large amout of testimony has been
! taken and all the facts have been develop
ed which appear to be necessary for the
consideration oiIthe questions arising from
the condition OF the said railroads and
their relations to the government. The
commissioners have, however, been una
BILE 10 report on the manner in which
these railroads should be rsted respecting
hai nd tn hp Qta1a
or to unile upon plan best calculated to
secure repayment OF such Indebtedness.
This disagree ment has resulted in the
pre- paration Of two reports, beth Of which
are herewith submitted to Congress.
These reports exhibit such transactions
and schemes connected with
the construction OF the sided
roads and their management, and sug.
gest the Invention Of such devices on the
part OF those having them in charge for
the apparent purpose OF defeating cnv
chance for the govern ent's reimburse
ment, that any adjustment or plan Of set
Element should be predicated upon the
substantial interests of the government
rather than any forbearance or gener
osity deserved by the companies. TEE
wide publication which has already been
given to the substance Of the commits
sioners' reports ooviates the necessity OF
detailing in this communication the
facts found upon the in
yastigation. TIE msiority report
while c0nGemnlpg The methods
adopted by those who formerly had charge
OF the Ulion Pacific Railroad declares
that since it's present management was
inaugurated, in 1884, its airs have been
fairly and prutently conducted and that
the present administration "has devoted
itself honestly and intellisentlY TO the
herculean task Of rescuing the
Union P4cihc Railway from
the insolvency which seriously th-este ned
it at the inception OF its work, and tina.
II mas devoted itself by rigid &C )nony, oy
Intelligent management and by the sppli
cation Of every dollar of the earning Ca
pacity of the system to its improve ment
and Oetterment to place th6t company on
a sound snd enduring financial founda
tion.' The condition of the present man
agement of the Union Paciti3 Company
has
AN IMPORTANT BEARING
! upon its ability to comply with the terms
OF any settle ent Of its indebtedness
which may be asked for by the govern
ment. q majority OF the commissioners
are in favor of an extension Of time for
the payment OF the government indebted
| ness OF those companies on certain con
ditions, but the chairman CT the commits
| sion presenting minority report, recon-
meDds both upon principle and policy the
| institution of proceedings for the for
| feiture OF the charters of the corporations
and the winding up Of their Affairs.
| have been furnished with 6 statement Or
argument IN defense tf the Transactions
connected with the construction of the
| Central Pacific Railroad and its branch
| lines, from which II may not be amiss
to quote for the purpose OF show
| ing how some of the operations
Of the directors of said road strongly con-
demned blythe commissioners are defended
/ by the directors the mselves. After speak
Ing OF the contract for the construction of
one of these branch lines by q corpola a.
! tion called contract and finance COM
psny, owned by the directors of the Cen-
trail Pacific Railrosd, this language is
used: at may be said Of this contract az
! OF msny Others that were let to different
| construction companies in which the di-
rectors of the Central Pacific have been
stockholders, that they built the roads
with moneys
FURNISHED BY THEMSELVES
] and had the road for their outlay. In
other words they paid to the constructors
CT the line the bonds and stocks of the
railroad SO constructed and waited until
such tine Is they could develop sufflciens
business Of the rosd built TO induce the
public to buy the bonds Or stock. II the
country through which the road ran de-
veloped sufficient business, then the pro-
iect was success; il il cid not, then the
operation was loss. These gentlemen
took slI the responsibility. Any loss was
of necessity theirs, and Of right profl5 be,
longed 20 them. But 1t is said that they
violated q well known rule Of equity In
| dealing with themselves, thst they were
trustees, and that they were representing
both sides OF the contract. The
srsHeT Is that they did not
dad anybody else TO deal with
| They could not find anyone who would
take their chances of building q road
through Whist WAS then IN aim est unin-
hsblted country and accept the boads snd
stock OF the road in payment, aud wheu
it is said that hey were trustees If they
did occupy sucd relation il was merely
technical, for they represe nted only thsi;
OWE Interests On both SHES, there being
no one else concerned in the tr.psactien
They became iEcorporat rs Of tile con
pany that WAS to build the road, sub
scribed foE It's stock and were The only