The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1888-01-18
THE PACIFIC ROADS.
President Cleveland on the Reports
of the Commissioners.


WASHINGTON, Jan. 17.-President Cleve-
land to-day sent to Congress message
transmitting the Pacific Railway Commits
sioners' reports. The President reviews
both the majority and minority reports, ex-
plains the text of the grants made to the
Union Pacific and Central Pacific roads and
says:
The immense advantages to the companies
from these and the amendatory acts, are apparent
and in these days, we may well wonder that even
the anticipated public Importance Of the c0nstruc-
ton of these roads induced what must now ap-
pear to be the reckless and unguarded apprepr-
alton of the public funds and public domain. The
interest, calculated to the maturity of the b)nds
added to the principal produces an aggregate of
$17s8s4, 769. Against those amounts there has
been repaid by the companies, the sum Of $780,
955,O39. 1t Is almost needless to state that the
companies have availed themselves, to the ut
most extent, of the permission gwen them to
issue their bonds. and to mortgage their property
to secure the payment of the same by an incum-
brance having preference Of the governments
lien and precisely equal TO it in amount.
There was available for the building OF each
mile of these roads $4,000 of United States
est; SIC, 900 in bonds Of the companies, secured
by first mortgage on all their property and ten
sections Of government land, to say nothlng OF
created between the government and the COM
panies by the legislation referred TO, Is consid-
cred, it is astonishing that the claim should be
duty except to themselves in their construction I;
that they need regard no interests but their
tracing with themselves and making such
bargains as resulted In conveying TO their
pockets an the assets OF lhe companies.
amount OF the mortgage to which its security had
been subordnated, and it had q right to insist
that none of the bonds secured by this prior mort
gage should be issued fraudulently or for the pur
pose of division among these stockholders. With
out the consideration of the doctrine Of complete
these companies and their freedom from my obli-
cation to care for other interests than their own
In the construction Of these roads, there seems to
have developed natural consequence OF its appll-
cation, the result of which is portrayed in the ma
iority report of the Commissioners.
The generous laws enacted in aid OF these roads
should not be impaired by unfair manipulations,
and when the government subordinated its lien
to another, it was in expectation that the prior
lien would represent, in its amount, only s9ch
bonds as should be necessarily issued by the COM
panies for the construction OF their roads, at fair
prices, agreed upon in an honest way between the
real and substantial parties, and the government
should have the right now to purge this para
mount lien of all that is fraudulent and fictitious
If the transfer to innocent hands of bonds of this
character prevents their cancellation it might be
well to seek remedy against those who issued
secure such remedy, Congress can readily sup
ply it, desire to call your attention also to the
fact that If all that was to be done the part of
the government to fully vest in these companies
the grants and advantages contemplated by acts
passed in their interest has not yet been perfect
gu, anu IL tilt VI SUCH COHpdulco W per-
form in good faith their part of contracts
justifes such a course, the power rests with
Congress to withhold further performance on the
part of the government II the donated lands are
not yet granted to these companies, and If the
revolution Of the contract and duty are such as in
justice and morals, forfeit their rights to such
lands, Congressional action should interfere TO
prevent their further consummation. Executive
power must be exercised according to existing
laws and executive discretion is probably not
broad enough to reach the difficulties. 1t is quite
time that troublesome complication surrounding
this subject should be adjusted and settled. No
one, think, expects that these railroads will be
able to pay their immense Indebtedness to the
government at its maturity but any proceeding or
arrangement 3hat would result in putting these
roads, or any portion of them, in the possession
and control of the government, is in my opinion,
to be rejected certainly as long as there Is a
least chance for indemnihcation through any 9TH
er means. suppose we are hardly justified in
indulgng in the irritation and indignation natur-
ally arising from the contemplation Of malfeas-
ance to such an extent as TO lead to the useless
destruction of these roads or the loss OF the ad-
vances made by the government. The settlement
and determination of the question involved are
peculiarly within the province of Congress. Pub
lie interest urges prompt and efficient action.
(Signed) GROVER CLEVELAND.