Omaha daily bee., 1888-01-18

while the great creditor, the United States,
bids itself subsequently without adequate
security for the repayment of its loan.
For the purpose OF saving or improving
the security afforded by its junior lien the
government should have the right now to
purge this paramount lien of all that is fraud
ulent, fictitious and unconscionable. III the
transfer to innocent hands of bonds Of this
character secured by first mortgage prevents
their cancellation, it might well seem that
the remedy Is against those who issued and
transferred them. If legislation is needed to
secure such remedy congress can supply it."
In regard to the land which had not yet
been granted these roads, the president said
''lf the failure of such companies to perform
in good faith their part of the contract justi-
fled such course, the power rests with con-
gress to withhold further performance on the
part of the government. II donated lands
are not yet granted to these companies and
if their violations of contract and duty are
such as, in justice and morals, as forfeit
their rights to such lands, congressional
action should intervene to prevent further
consumption. The executive power must be
exercised according to existing laws, and
enough to reach such difficul-
ties. The California & Oregon
railroad is now part of the Central
Pacific system and is u land grant road. Its
construction has been carried on with the
same features and incidents which have
characterized other constructions of this
system and is made apparent on pages 7S, 70
and 80 of the report of the majority of the
commissioners.
~ have in my hand the report of the com
mssioners appointed to examine the two
completed sections of this road Upon the
approval of these commissioners the Central
Pacific company will be entitled to patents
for large quantity of public lands. | espe-
cially commend to the attention of congress
this condition of affairs, in order that it may
determine whether or not it should inter-
vene to save these lands for settlers, If such
course is justifable But it is quite
time that the troublesome complca-
tions surrounding this entire subject, which
has been transmitted to us as alegacy from
former days, should be adjusted and settled
No one, / think, expects that these railroad
companies will be able to pay their immense
Indebtedness to the government at its ma
turity. Any proceedings or arrangement
that would result now or at any other time
in putting these roads or any portion of them
in possession or control of the government is,
in my opinion, to be rejected-certainly as
long as there is any chance for indemnitica-
tiOn through any other means.
~ suppose we are hardly justified IN in
dulgIng the irritation and indignation natur-
| ally arising from a contemplation of the NAL
| feasance to such extent as to lead to the use
| less destruction of these roads, and the loss
! of the advances made by the government.
| believe that our efforts should be in Il more
| practical direction and should tend, with
no combination of wrong doing, to
| the collection by the government,
| now in jeopardy. While the plan presented
| by the majority of the commission appears to
| be well devised and gives at least partial
| promise of the results sought will not escape
! attention. that its success depends upon its
acceptance. 1t is exceedingly important
| that any adjustment now made should be
| final and effective. These considerations
suggest the remedy proposed in the majority
| report might well be applied to part of
| these aided railroad companies The settle
| ment and determination of the questions in
| volved are peculiarly within the province of
| congress. The subject has been made quite
| familiar one by congressional discussion
| This is now supplemented in IA valuable man
! ner, by the facts presented in the reports
| herewith submitted. Public interest urges
prompt and efficient action"