Butte semi-weekly miner. [volume] (Butte, Mont.) 1886-1890, 1888-01-21
THE IMMENSE ADVANTAGES

to the companies OF this ~amendatory act
are apparent and in these days we may
we'll ~onder that even the anticipated
public Importance OF the construction OF
these roads induced what must now appear
to be a rather reckless and u%nguarded ap-
preparation of public funds and the public
domain 1t is almost needless to state
that the companies have awaited them
selves to the utmost extent OF the per-
mission given them to issue their bonds
and TO mortgage their proe,tv to secure
pay ment OF tue same by n in%cumbrance
having preference over the Governments
len and precisely equal to it in amount
When the relations created between the
Governments and these companies by the
legislation referred to is considered it is
astonishing that the claim should be made
that the directors oithese roads owed no
duty except to themselves in their con-
struction, that they need regard no inter-
ests but their own, and hat they were
justified in contracting with themselves
and making such bargains as result.d in
rG THEIR
all the assets OF the Government. As
lienor, the United States was vitality inter
ested in the amount OF the mortage t o
which it's security had been subordiuated,
and it had a right to insist that none OF
he bonds secured BY this prior mortgage
should be issued frauduientiy, or for the
purpose ofdivision among the stockholders
,i,hout consideration. Tne doctrine of
complete independence on the part of the
directors of these companies and their
freedom from any obligation to care for
any other interests than their own con-
struction Of these roads seems to nave de-
veloped the natural consequences. Its ak-
piicatiOn is portrayed asfolluws in the ma
jority report OF the commissioners The
result is that those who have control and
directed the construction and develop
'nent OF these companies have become dis
possessed OF their surplus assets through
the issue Of bonds, stock and the aymen
Of dividends voted by themselves, while
the great creditor. the United States, finds
Itself substantially
WITHOUT ADEQUATE EcURITY
for repayment of its loans. The laws en-
acted in aid OF these roads, while they
the profuse liberaiity and gen
surrender OF the Governments adj
vantages, which it is hoped experience has
corrected, were nevertl eless passed upon
the theory that the roads should be con-
according to the common rules of
fairness and duty and that their
value and their ability to p y their debts
should not be impaired by mia maiipu-
and VIXEN the Government subor-
iinated its lien to another. it was in ex- |
pectation that the prior lien would repre-
sent in its amount only such i.onds a.
be necessarily issued by the COM
uan es for the construction of their roads
At fair prices, agreed upon in an honest
way between real and substantial parties.
1t is quite time that the troublesome com |
pIicati ms surrounding this entire ~sunject
has been Transmitted to US as
LEGACY FROM FORMER DAYS.
should be adjusted and settled. No one, l
.hink, expects that these railroad COM
oanies will be able to pay their INN ems,
Indebtedness to the Government at its
maturity. Any proceeding or argument
hat would result pow or at any Other !
lime in putting these roads or any portion
II them in possess on or control OF the
government is in my opinion t. be re-
ected. certainly as long as there is the
east chance for decentralization throus.t
my other means. | suppose We are
,ardly justified IL INDUCING IN the irrita-
ion and Indignation naturally arising from
he contemplation OF MALI sanc- to such
n extent as to lea to the useless dtstruc-
of these roads or loss Of advances
by the Government. | b lieve that
,ur efforts should be in u more practical
~irection and should tend with no condo
lation of wrong dong to The collection by
he Government on b half OF the people oil
public money
nile the plan presented by the majority
the commission appears to be well de-
ised and gives at least a partial promise
i the results sought, the fact will be well
OF to escape attention that its success
epends upon its acceptance by the COM
'anles and their ability to perform its con-
ltlon after acceptance. 1t is exceedingly
important that any adjustment now made
hould be final and effective. These con-
lderationssuggsst the possibility tAat the
rmedy proposed in the majority report
right be well applied iu part only to these
lded railroad companies. The $ ttlement
determination Of the gu, stions in
olved are peculiarly within the province OF
The subject has been made
ute a familiar one by Congressional dis
uss'ons. This is o supplemented in a
manner by the facts presented in
ne reports herewith submitted. Public
lterest urges prompt and efficient action.
GROVER CLEVELAND.
EXECUTIVE MANSION, January II, 1888.