Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1888-01-28

their Interests than 4 CT own IN the e~onstrlc
tion OF these roads seem 70 have developed the
natural consequences Of its application, por
trayed as follows IN the majority report Of the
commissioners:
The result is that those who have controlled
and directed the construction and development
Of these companies have become possessed oil
their surplus assets, through issues Of bonds
stocks and payment Of dividends voted by them.
selves, while the great creditor, the United
States, finds itself substantially without ade-
Quate security for the payment OF its loans
The laws enacted in aid OF these roads, while
they illustrate 4 profuse liberality and Il gener-
Gus surrender OF tho government advantages,
which n IS hoped experience has corrected, were
nevertheless passed upon the theory that the
roads should be constructed according to the
commOn rules OF business, fairness and duty,
and that their ability TO pay their debts should
not be impaired ny uhfuir thunlitulationS, aud
! which the goveriimcnt SubOrdinated its lien to
another was in the expectation that the prior
lien would represent in its amount only such
bonds as should be necessarily issued by the
companies for the construction OF their roads at
fair prices, agreed upon in an honest way, be-
tween real and SubStan' ial parties.
For the purpose Of saving or improving the
security afforded by its junior lien, the govern
ment should have the right to purge this para
mount len of all that is fraudulent, fictitious,
or unconscionah,e If the transfer 10 honest
hands of bonds of this character secured by such
first mortgage prevents their cancellation, it
might be well to seek 4 remedy against those
who issued and transferred them Ii legislation
Is NEEDED TO secure such q remedy Congress can
readily supply IL
desire to call attention also to the fact that II
all that was TO be done on the part OF the gov
ernment 10 fully vest In these Companies the
grants and advantages contemplated by The acts
passed IN their interests has not yet been per
fected, and If the failure of such companies to
perform, in good faith, their part Of, the con
tract, ~lustlties such a course, the power rests
with the Congress To withhold further perform
anccs on the part Of the government, Ii donated
lands are not yet granted to these companies,
And Il their violation of contract and az duty are
such as, in justice and morals, forfeit their
rights 10 such lands. Congressional acton should
TO prevent further CouSummalion.
Executive power must be exercised according
10 existing laws, and executive discretion is
probably not broad enough TO reach such dim
c%ultieS.
The California 4 Oregon railroad is now a
part o! the Central Pacific system, and Is u land
grant road, Its construction has been carried
on with the same features ana Incidents which
characterized the other construct ors of
system, as is made apparent on pages IS, 70 i
~ of the report Of the majority Of the com.
nlssloners, ] have In my hands for approval the
or commissioners appointed TO examine |
complicated sections Of this roal. Upon |
'uch approval the company or the Central Ia.
litc Company, will be entitled to patents for o |
arge quantity of public lands. ] especially com. |
mend TO the attention OF Congress this condition |
aNaira, IN order that It may determine whcth. |
or not II should intervene to save these lands |
settlers, il such q course Is unsuitable.
II is quite time that the troublesome compli. |
atoms surrounding this entire subject which |
Deen TRANSMITTED to US as q legacy from |
DAYS, should be adjusted and settled.
| suppose we are hardly justified in INDUCING /
he irritation and Indignation naturally arising
rom o contemplation OF malfcaSanCC 10 such an |
.Stent as TO lead to the useless destruction OF
hese roads or the loss Of the advance made by
he government, | believe thai our efforts
Mould be in n more practical direction. and
hou!G tend win no condemnation of wrong do.
lg TO the collection by the government, on be.
All OF the people, of the public money now in
While the plan presented by n majority Of
comm sSion appears To be well devised, and
ives at least partial promise OF the results
ouSht, the fact VIII not escape attention that
5 success depends upon its acceptance by the
1mpanles and their ability to perform It's con
ltloiS after acceptance. II is exceedingly i'm.
ortant that any adjustment now made should
c ilnal ana effective. These considerations
lggest the possibility that the remedy pro.
o,sed IN the majority report might well be
lapteI to a part only OF these aided railroad
DmpaniCS.
The settlement and determination of the
involved are peculiarly within the
rovince or the Congress, the subject has been
ade quite a familiar one by Congressional dis.
lsslon; this is now supplemented in a valuable
amer ny the facts presented In the reports
submitted
me puD!!c interest urges prompt and efficient
,noh GROVER CLEVELAND.
Mansion, January II, 1888.