The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1888-01-26

their property. and ten sections OF government
iSnd1to say no hing OF the stock OF tne com
panies. -. Al, !. ,,v.
e,-nment and these companies by the Legislation
referred 10 is considered, IL Is astonishing lha
The claim should be made that the directors ol
these roads owed no duty except 70 no
Interests hut their own. and that they were JUS
tihed in contracting with themselves anu MAJ ~
ing such bargains as resulted IN eonaeyln Te ~
their noclsets all the assets OF the companies.
AZ n ieuier the government was VltaHy intet-
ested In the amount OF the morigage " a, MA Ma
lis security had been subordlnaiea anu r
the right TO insist that none OF me ro nus
secured by this prior mortgage should pc lssueu
frspldulently or for the purpose OF ultss.oA
among these stockholders without oonsiue'
@s The doctrine OF complete independence on the
mart of the directors OF these companies, anu
their freedom from any obligation 70 cals ~
their interests than their own IN lhe oohs IONS, ~
zion az these roads seem 10 have developed the
natural consequences OF its application, pot
trayed as follows in the majority report Oh 'ne
TYNE :" st is that those who have controlled
and directed the construction and developmenss
OF these companies have become possesseu "a o'
their surplus assets, d1aends voted BY them
selves while the great creditor, the umteu
states finds itself substantially without aue'
quate security for the paymeht OF its Ss while
The laws enacted in aid OF these ROADS, Mnlle
,bev illustrate n profuse liberality and gener-
Gus surrender OF the government advahtages,
which It is hoped experience mas ,,, me
n eyertheess passed upon the theory that lne
roads should be constructed according 70 lhe
common rules OF business, fairness ana uuty;
and that their ability 10 pay their 9euts shous i
n 81 he impaired by unfair mnnipulauons, anu
when the government subordinnted its hen 70
mother II was in the expectation tnat tne Pii1ss
| lien would represent in its amount only sun Sn
| honda rs should be necessarily issued ~ VI.
| nompanies for the construction OF their roads Nv
/ fair prices, agreed upon in an honest way DC
! tween real and substantial parties az
/ For the purpose OF saving or improving tnu
! security Afforded by It's junior lien, the govern
ment should have the right to purge ms ,I pau
| mount len OF all that 10 fraudulent ncutlous,
or urconscionao.e II the trahssc ,re eS NV such
| first mortgage prevents their canceiato,h, "
might be well TO seek remedy agast tation
who issued and transferred them ~ ,on
| Is needed to secure Sueh q reuleuS SohetesS W
desire 10 call attention also to the iaet thas u
! all that was 10 be done on the part OF the eu,
| ernment to fully vest in these, companies tnc
i grants and advantages contemplated by me Acls
passed In their interests has not yet peeh ~
fectod. and II the failure OF such companies W
i nerform, in good faitE, their part OF inc con
trnct iustines such q course, the power rests
with the Congressto withhold further perform ~
ances on the part OF tho government IL uoha.ou
lands are moi yet granted TO these COMP =
and n their violation of contract and OF duty hIt
such as In jnstice and morals, iorift tncn
rights 10 such lands, Congressional nct on shoule
intervene 10 prevent fSr'hes SoaS accordinr
10 existing laws. and executive dlscretion "
probably not broad enough TO reaeh suen uiiit
eulties. a, o,x ,
part OF the Central Pacific system ana Is . ln,,,
grant road Its construction has been caTr, ,e,
on with the same features ana incidents Mn'o !.
| have characterized the other CONSTRUCTIONS o
| this system as is made apparent on pages % !,
and 80 OF the report OF the majority OF the com
nissioners, / have in my hands for approSal w
| report OF commissioners appointed 10 eNhIin
Two conpicaied sections Of this roai uPol
such approval the company or the Central "a
cidc Company, will be entitled TO patents LOT
large quantity OF public LANDS
az affairs in order that IL may determine Whet.
or or not ii should intervene TO save these lanu
for settlers, II such course Is lustlhhoio. :,
r tits quite time that the troublesome comp
cations surrounding this entire subject wnlc
5 has been transmitted 70 us as iegaeS n"l
( former DAYS, should be adjusted and settie9.
, suppose we are hardly justified in indulgih
G the irritation and Indignation naturally arisin
4 from a contemplation OF malfeasance 10 snch
l. extent as to lead TO the useless OBSTRUCTION
these roads or the loss OF the advance ma1e
r. Tho Government / believe that our enor
l. shouid be in q more practical direction, o.
!. should tend with no condemnation oil wrong q
y ing to tho collection by the goverhulen' oa y
= half OF the people, OF the public money no"
s jeopardy t.,r
a. While the plan presented by a majority
d the commission appears TO DC wen ue.iseo, ~ ~
le gives at least partial promise OF the resul
a SOUGHT the fact will not escape attention IN
e its success depends upon its acceptance by !
re companies and their ability 70 perform rs 6
a ditions after acceptance. ~ Is exceeaihgiy
nv nortant that any adjustment now made shou
Ic- be final and effective. These considerable
he suggest the possibility that the remedy
ut posed In the majority report inlgnt WI.
al adantej to a part oaly OF these aided railro
~. companies. .-L...., :, ,
on The settlement and deterninntion ol
so questions involved are peculiarly wilhh
ey province of the Congress, tine suDlect mus "
ad made quite familiar one by Congressional
or cussion; this is now supplemented in valua
he manner by the facts presented in the repo
he herewith submitted
OBJ The public interest urges prompt and einci
al .c,ion GROVER CLEvEI.ANl
&c Executive Mansion, January IL 1855.