Fort Worth weekly gazette. [volume] (Fort Worth, Tex.) 1882-1891, 1888-01-20
subscribers; therefore, it is difficult to
ANYONE WAS wRONGED

subscribers; therefore, It is difficult to
see how
ANYONE WAS wRONGED
/ by their action. The rule of equity in
voked, which has It's origin In the ipjunc-
ton thst no man can serve two masters,
certainly did not apply to them, becsuse
they we're scting in their own interests
sad were not charged with the duty Of
caring for others rights, there being no
other persons interested in the subisc.
matter"
In view OF this statement snd the facts
developed in commissioners reports, it
seems proper 10 recall the grants sud
benefits derived from the general govern
ment by both the Union snd Central
PAcihc Companies for the purpose OF sid
ing the construction Of their roads. By
an act passed in 1862 it wss pros ided
inst there should he advanced to said
companies by the U0ited States TO sid
such construction bonds of the govern
ment amounting TO Sic, 900 for every mile
constructed as often as s section OF forty
miles OF said roads should be buiit; that
there should al5O be grsnted to said COM
psnies upon the completion Of every said
=
sections OF public land for each mile so
built; that the entire charges earned by
said roads on account Of traus-
pOrts;ion snd serving fer the government
should De applied TO the reimbursement
Fof bonds advanced by the United States
ami interest thereon, and that to secure
repayment of she bonds so advanced and
interest the issue and delivery to said
companies OF ssid bonds should consti-
tute
FIRST MORTGAGE
on the whole line OF rcsds, and on their
rolling stock, fixtures and properly Ct
every kind and description. Liberal do
natiOne, advances and privileges provided
for in this law were grsnted by the gener-
al government for the purpose OF securing
the construction OF these roads,
which would complete connection
between our eastern and western COSTS,
and they we're leased upon consideration
of public hent lis whisn Wcu d accrue 20
the entire country from such construc-
ton Blu: the projectors CT these roads
were not content and the sentiment
which then seemed 10 pervsde Congress
had not reached the limit OF It's generosi-
~. Two years after the passage Of this
law it was supplemented and amended N
various important particulars il favor If
those companies by 81 set which provid-
ed among other things thst bonds ct the
rSte already specified should
De delivered upon the CON-
pletion OF sections If twenty miles
IN length instead Of forty; thai the lands
&c be conveyed 20 said companies on the
con p.eti0n # each section Of SAID road
should be ten sections PEI mile instead OF
five; thai only hs.i Of the chsrges for
transportation and services Que from
time 70 time from the United States
should be retained aud applied To ad-
yances made TO said companies ty the
government, thus obligiUg
IMMEDIATE PAYMENT
10 the debtor Of the other half Of said
charges, and that the lien Ct the Uuited
States to secure reimbursement of the
amount advanced 10 said companies in
bonds which lien WAS declared bY the law
OF 1862 20 constitute first mortgage up
on all the property Of said comp 3nies
should become junior lien and
ba su5OTdinated to mortgage
which the companies were By amendatory
act authorized 10 execute to secure the
bonds which they might from time to
time issue in sums not exceeding TIE
amount Of Unitod States bonds which
should be aCvsDced to them, The i'm =
meDse advantages 10 the companies of this
smendatOry act are apparent, and in
these days We msy we'll wonder that even
the anticipated pubic Importance OF the
construction Of these Soads induced what
must now appear to be rather
RECKLESS AND UNGUARDED
appropriation Of public funds snd public
domain. Tnder the operation of these
laws the principal OF the bonds which
have been advanced is S64 023, 5i2 SIS
given in the reports ofthe commissioners.
The inter5 st ~ NDvem her l, 1887, is Cal
culsted to be SIC, O24 ,206 So, making an
aggregate at the date named of $3.50,
047,7iS so. Interest calculated to the
maturity Of the bonds addet to the prin-
cipal produces an gregate OF Sl76. $751;
| 759 so Against these amounts there has
neen repaid by the companies the sum OF
$50, 955, 039 81. 1t is almost needless to
state that the companies have awaited
! themselves TO the utmOst extent Of the
permission given them to issue their
bonds ana to mortgage their property TO
secure the payment of the same by
encumbTa1ce having the preference OF the
governments lien and precisely equal to
i. in amount. It will be seen that there
was available for building each mile OF
these roads SIC 900 Of United States
| bopds, due II thirty years, with per
cent. interest; $4,000 in bonds Of the
companies, secured by s first mortgage
! on sll their properly, an ten sections OF
government land, to say nothing OF the
| stock Of the companies. When the Tela-
lions created between the government
and these companies by the legislation re-
Tired to is considered,
IT IS ASTONISHING
| that the claim should be made that the
directors Of these roads owed no Gu y
excent 10 themselves in their construc-
ton; that they need regard no interest
but their OWL, and that they were justi-
ted in contracting with themselves and
mskiog suCh bargains as resulted In coz
veyirg 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 IT'S security mad
been suoordinated, and II had right to
insist none of the bonds secured by this
! prior mortgage should be issued fraudu.
! lently or for the purpose Of division
smong these stockholders without con
| sder,tiOn. 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 10 the CON
structlon of these roads seems TO have
developed the natural consequences o.
its application portrayed as follows IL
msiOrity reDOrt of the commissioners