The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1888-01-28
them property, and ten sections Of government
land-to say nothing OF the stock Of the com.

the. property, and ten sections Of governments
land-to say nothing OF the stock OF the com
panies.
When the relations created between the gov.
eminent and these companies by the legislation
referred 10 is considered, IL Is astonishing that
the claim should be made that the directors OF
these roads owed no duty except to themselves
In their construction, that they need regard no
interests but their own, and that they were JUS
titled In contracting with themselves and max
ing such bargains as resulted In conveying to
their pockets all the assets OF the companies.
As lenier the government was vitality inter
ested In the amount Of the mortgage 10 which
the SIdsh rsht to insist Hs that none Of the the sonSs
secured by this prior mortgage should be issued
fraudulently or for the purpose OF division
among these stockholders without consider
alton.
The doctrine Of complete independence on the
part OF the directors OF these companies, and
their freedom from any obligation to care for
their interests than their own In the construc-
tion Of these roads seem to have developed the
natural consequences OF Its application, por.
trayed as follows in the majority report OF the
commissioners:
THE result is that those who have controlled
and directed the construction and development
of these companies have become possessed of
their surplus assets, through issues of bonds,
stocks and payment OF dividends voted by them
selves, while the great creditor, the United
States, finds itself substantially without ade
quate security for the payment OF It's loans"
The laws enacted in aid OF these roads, while
they illustrate profuse liberality and gener-
Gus surrender OF the government advantages.
which IT is hoped experience has correctcd,were
nevertheless passed upon the theory that the
roads should be constructed according TO the
common rules OF business, fairness and duty,
and that their ability to pay their debts should
n OF be impaired by unfair manipulati0ns, and
when the government subordnated its lien TO
another II was in the expectation that the prior
lien would represent in its amount only such
bonds rs should be necessarily issued by the
companies for the construction OF their roads at
fair prices, agreed upon in an honest way. be-
tween real and substantial parties
~ mr. fplv, .ptty,
security Afforded by its Junior lien. the govern
ment should have the right to purge this para
mount lien OF al that IS fraudulent, fictitious,
or unconscionable. II the transfer to honest
hands of bonds of this character secured by such
first mortgage prevents their cancellation, 1t
might be well to seek remedy against those
who issued and transferred them. II legislation
is needed to secure such remedy Congress can
readily supply IL.
all that was to be done on the part OF the gov
ernment to fully vest in these companies the
grants and advantages contemplated by the acts
passed in their interests has not yet been per-
fected, and If the failure OF such companies to
perform, in good faith, their part OF the con-
tract iustitles such course, the power rests
with the Congress TO withhold further perform
ances on the part OF the government. II donated
lands are not yet granted to these companies,
and II their violation of contract and OF duty
such rs. in justice and morals, forfeit their
rights to such lands. Congressional action should
intervene to prevent further consummaton.
Executive power must be exercised according
to existing laws and executive discretion is
probably not broad enough to reach such diff
culties.
The California g. Oregon railroad 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. rs is made apparent on pages fS, 10
and 80 of the report of the majority OF the com
missioners. ] have in my hands for approval the
report OF commissioners appointed to examine
two complicated sections of this road. Upon
such approval the company or the Central Pa
ciiic Company, Will be entitled to patents for q
large quantity of public lands. l especially COM
mend TO the attention of Congress this condition
OF affairs, in order that it may determine wheth-
er or not it should intervene to save these lands
for settlers If such course is justiiable.
II is quite time that the troublesome compl-
cations surrounding this entire subject which
has been transmitted to us as q legacy from
former DAYS, should be adjusted and settled.
suppose we are hardly justified in indulging
the irritation and indignation naturally arising
from contemplation of malfeasance to such an
extent as to lead to the useless destruction OF
these roads or the loss OF the advance made by
the government I believe that our efforts
should be in q moro practical direction. and
should tend with no condemnation OF wrong do
ing to the collection by the government, on be-
half OF the people, of the public money now in
jeopardy.
the commission 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 upon its acceptance by the
companies and their ability to perform its con-
ditions after acceptance. 1t is exceedingly i'm
portant that any adjustment now made should
be final and effective. These considerations
suggest the possibility that the remedy pro-
posed in the majority report might well be
adapted to q part only of these aided railroad
companies.
The settlement and determination OF the
questions involved are peculiarly within the
province of the Congress, the subject has been
made quite familiar one by Congressional dis
cussion; this is now supplemented in n valuable
manner by the facts presented in the reports
herewith submitted
The public interest urges prompt and efficient
action GROVER CLEVELAND,
Executive Mansion, January II, 1855.