Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1888-01-25

scribers. Therefore it is difficult to
see how anyone was wronged by their
action. The rule of equity invoked
| which has its origin in the Injunction,
no man can serve two masters, certain
| ly did not apply to them, because they
| were acting In their own interests and
were not charged with the duty Of car
ing tor others rights, there being none
others interested in the subject matter
''In view of this statement and the
facts developed in the commissioners
reports it seems proper to recall the
grants and the 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 an act passed in 1852 it was pro-
| vlded that there was advanced to the
said companies by the United States to
aid in such construction the bonds OF
| the government amounting to $16 900 for
every mile constructed, as often as a
section of 40 miles of said roads should
be built; that there should also be
granted to said companies upon the
completion of every said section OF 40
miles of road, five entire sections
of public land for each mile SO
| built; that the entire charges earned by
|
and service for the government should
be applied to the reimbursement Of the
| bonds advanced by the United States
and the interest thereon, and that to Sc
cure the repayment of the bonds SO adj
vanced, and interest, the issue and de-
livery to said companies of said bonds
should constitute a first mortgage on the
whole line of their roads and on the
rolling stock, fixtures and property of
every kind and description.
"The liberal donations, advances and
privileges provided for in this law were
granted for the purpose of securing the
construction of these roads, which
would complete the connection between
our Eastern and Western coasts; and
| they were based upon consideration of
the public benefits which would accrue
to the entire country from such con-
struction. But the projectors of these
roads were not content and the sentl-
ment which then seemed to pervade the
| Congress had not reached the limit of
its generosity.
1.-TWO wears after the passage Of this
| law it was supplemented and amended
in various important particulars in favor
of these companies, by an act which pro-
v1ded among other things that the bonds
| at the rate already specified should be
| delivered upon the completion of sec
tons of twenty miles in length instead OF
forty; that the lands to be conveyed to
said companies on the completion OF
| each section of said road should be ten
sections per mile instead of five, that
only half of the charges for transporta-
ton and service due from time to time
from the United States should be re-
tanned and applied to the advances
made to said companies by the govern
ment-thus obliging immediate pay
ment to its debtor of the other half OF
said charges-and that the lien of the
United States to secure the reimburse
ment of the amount advanced
to said companies IN bonds,
the law of 1862 to constitute first
mortgage upon all the property of said
companies, should become a junior line
and be subordinated to a mortgage
which the companies were by the
| amendatory act authorized to execute to
secure bonds which they might from
time to time issue in sums not exceed
| ing the amount of the United States
bonds which should be advanced to
| them.
''The immense advantages to the COM
panies of this amendatOry act are APP
| parent; and in these DAYS we may well
! l..
lie importance of the construction Of
these roads, induced what must now APP
pear to be a rather reckless and I'M
guarded appropriation of the public
funds and the public domain.
Under the operation Of these laws
the principal of the bonds which have
been advanced is 1854, 033, SIP as given in
the reports of the commissioners; the
interest to November l, 1887, is calcu-
lated to be 1924 ,206.5S, making an ag-
gregate at the date named Of S14O. 047, )
71S.5S. The interest calculated to the
maturity of the bonds added to the prin-
cipal produces an aggregate OF Sl7S, 1884,
1880. Against these amounts there has
been repaid by the companies the sum
of $50, $50 ,039.61.
SIT is almost needless to state that the
companies have availed themselves to
the utmost extent of the permission
given them to issue their bonds and tC
; mortgage their property to secure the
payment of the same by an incumbrance
having preference of the governments
lien and precisely equal to it in amount
at will be seen that there was avail
able for the building for each mile OF
these roads, $4,000 of United States
bonds due in so years with 6 per cent
interest. $4,000 in bonds of the com
panies secured by first mortgage on
all their property and ten sections OF
government land-to say nothing of the
stock of the companies.
"When the relations created between
the government and these companies by
the legislation referred to is considered,
it 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 justified in contract
ing with themselves and making such
bargains as resulted in conveying to
their pockets all the assets Of the com.
panies. AS leinor the government was
vitality interested III the amount of the
mortgage to which the security had beer
subordinated; and it had the right to in
sist that none of the bonds secured by
this prior mortgage should be issued
fraudulently or for the purpose of di
vision among these stockholders without
consideration.
'The doctrine of complete independ
| QnoQ ON no Yt of tho directors of these