The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-01-18
A Full Synopsis Of His Message 70
Congress Concerning Them.
He Specifies the Most Important
Points in the Recent Reports.
Attention of Congress Called TO the
Obligation Of the Companies.
lnsomuoh as Thoy Have Broken tho
Contracts In the Least the Govern
ment Is Released nom Lend
ing Them Further Aid.

WASHINGTON, Jan. 1.-THE following ia
tho Presidents message, transmitting the
Paciiic railroad reports to Congress:
To the Senate and llouN Of REPRESENTATIVES.
On the 3d day Of March last, an act was
passed authorizing the appointment Of three
commissioners who should investigate the
Affairs OF such railroads M have received
aid from the United States government.
Among other things, the contemplated in.
vcstigotion included history Of the con-
sirnction OF these railroads. their relations
and indebtedness 10 the government, and
the question whether in the interest OF the
United States any extension OF the time for
the performance oi the obligations Of said
roads to the government should be granted,
and II 10 the commissioners were directed
TO submit scheme for such extension.
The commissioners wore further directed
by said act tu report In full to the presi.
dent upon all the matters submitted To
them, aud ne was by said act required 10
forward said report To Congress with
such recommendations or comments as he
should see III TO make in the premises.
Tho commissioners Immediately after
their election entered upon ihc,.discharge
Of their duties, and have prosecuted their
inquiries with commcndablc industry. in
tclligcncc and thoroughncss. A largo
amount ot testimony has been taken, and
all the iacts hayc been developed which
appear TO he necessary for the runsidon-
tion OF the question arising from the con-
dition Of those aided railroads and their
relations 10 the government The COM
missionoS have however, been unable to
agree upon the manner In which theso
railroads should bc treated respecting their
indebtedness 10 the United States on In
unite upon the plan best calculated 10 Sc
cup the payment of such indebtedness
This disagreement has resulted IN the
preparation of tNu reports, both of which
are herewith submitted 10 the Congress
These reports exhibit such transactions
and schomcs connected with the conslruc-
ton oi the aided rcpls aud iheig manage
mcni aud suggest the invention oi such do.
! viccs ON The part oftho-c having them IN
/ charge for the apparent purpose 81 diofthi.
! ing amy rhuuce iur the governments ~.
imhurcmuui that nny adjustment ar
plan NJ settlement should hr Urrdi,ricd
upon the substantial interests ~ the gov
crnmeni mihcr than any iorhcarnncc or
generosity deserved by the companies
The wide publication which has already
been given iu the substance oi the com.
mis-iunCn' reports ohyialcs the necessity
VI ling In this communication The
facts found upon the investigation.
TitE NAioEiIN Trronr,
while cpndcmning the methods adopted
by thosc Who formerly had charge IT the
Union Pacific mad, declares that since It's
pr'scnt management was iuluguraicd In
1884 Us ailMp have been fairly AMI pm.
IDENTITY conducted. aud that thc present ad.
minisirniiun "has devoted iisli honestly
and nicllig nily 10 thp htrulcan task VI
~ ,uing the Union Pacific railway from
the Insolvency which seriously threatened
Il at the inception ui IT, work that Il las
devoted itself 10y rigid economy 10y inlcll.
gent Management, aud hy gn application
ui every dollar oi the earning yapasity Of
the system to H. improvement aud better.
mcnt, tu place that company on q sound
and enduring financial foundation The
condition III The present management Il
the Uninn Pacific company las "a import
ant BEARING upon is ability to comply
with the terms oi any settlement ~ its in-
dcldcinug which may be- Offered by tho
government. The majority ui the COM
mis- on np In favor II IN extension II
thc line Tor the payment oi the govern
mrnt indebtedness of thcsc COMPANIES
upon certain conditions, bnt the chairman
oi the commission, presenting the minor
ily report, recommends both upun princi.
pic and policy, tie institution ~ proceed.
lngs for the forfeiture Of the charters u
the corporations, md thc winding ny of
tlcir affairs.
have been furnished with q statement
or argument in defense oi tile tulnsasiions
connected With the construction II tho
Central Pacific road aud iis branch lines,
from which Il may not be- amiss TO quote,
ior the purpose OF showing how some Oi
the operations Of the directors ol such
roads strongly condemned los the c0mmi--
soncu arr defended by the directors
themselves. After speaking oi contract
fpr the construction oi ono oi thcsc branch
lines by u corporation called the Contract
and Finance company, owned 10y dircciors
of the Central Pacific railroad, this Ian
guagc Is used:
"lt may be- said OF this contract, as II
many othcr that weo let 10 the different
construction c,srpanics IN which the di-
rclnn OF the Central Pacific have been
siockholdcrs, that they built the ro.l with
the MONEYS furnished by themselves and
had the road ior their outlay. In other
wopls. they paid 10 the construction com:
pany the bonds and stocks oi the railroad
so constructed aud waited until such timo
o. they could develop sufficient business
ON tlie road built 10 induce the pub
lie To buy the bonds or The
stock. II the country through which the
roaI uasscd Developed sufficient business
then the project was succcs- did
not. then the operation Wa lu.s. Those
gentlemen took all the responsibility
loss occurring wis necessarily theirs, aud
OF right the prof, belonged 10 them. But
Il IL said they violated a well known rule
OF equity In dealing with themselves that
they were trustees, and that they were
rrpn,~enting both sides Of the contract
1hc answer is that they did not hnd any.
boly else to deal with. They could not
find any one who would take The chances
ol building road through what was iheh
an almost uninhabitablc country, and nc
cert the bonds and stock Of the company
In nayment. And when u y aid that
IT,, 80, ,,,,stc,.a II they did occupy