Butte semi-weekly miner. [volume] (Butte, Mont.) 1886-1890, 1888-01-21
THE COMMISSIONS REPORT.
The President Transmits That ON the
Pacific Railroads to Con. ress.
With Some Strong Expressions Of His
Own Opinion About 1t.

With Some Strong Expressions Of Hi
Own Opinion About 1t.
The Government Interests should b
Exclusively Considered
Rather Than Any Forbearance or Gen
crosby to the Companies.
A Review Of Legislation in Their Favor
and the Return They Made.
WASHINGTON, January 1.-THE followin,
is the Presidents message transmitting thu
Pacific railroad reports to Congress:
To the Senate and the House Of Repre-
sentatives: On the third day Of Marct
last, an act was passed authorizing the
appointment of three commissioners who
should investigate the affairs OF such rail
roads as hav received aid from the United
States Government. Among other things
contemplated. the investigation included
the history OF the construction Of these
roads, their relations and indebtedness to
the Government and the question whether
in the interest OF the United States n ex.
tension of time for the performance of the
obligations of said roads to the Govern.
ment should BIZ granite and. il so. said
commissioners were directed to submit a
scheme for such extension. The commits
-ioners were further directed by the said
act to report in full to the President upon
all matters submitted to them and he was
by the said act required to forward said
report to Congress with such recommends.
or comments as he should see 1T to
make in the premises. The commissioner
Immediately after their election entered
upon the discharge OF their duties and have
presented the result Of their inquiries with
CoMMENDABLE INDUSTRY,
intelligence and ttorougbness. A large
amount Of testimony has been taken and
all the facts have been developed which ap-
pear to be necessary for the consideration
OF the questions arising from the conditions
OF these aided railroads and their relation
to the Government. The Commissioners,
however. have been unable to agree upon
the manner in which these railroads shouic
be treated respecting their indebtedness to
the United States, or to unite upon a plai,
best adapted to secure the payment of such
such indebtedness. This disagreement,
has resulted in the preparation Of two
both of which are herewith
to Congress. These reports ex-
nibit such transactions and schemes con
with the constru ton OF the aided
and their management, and suggest
the mention Of such devices on the part Of
those having them in charge for the ap
purpose of defeating any ctanc
or the Governments reimbut sement that
my adjustment or plan of settlement
should be predicated upon the substantial!
of the Government rather thar
any forbearance or generosity deserved b,
;he companies. The wide publication
which has already been given to the sub
stance of the commissioners reports obvi-
ties the necessity of detailing in this com
the facts
FOUND UPON INVESTIGATION.
The majority report. while condsmning
he methods OF those who formerly had
'harge of the Union Pacific Railroad, de.
that since ito present management
inaugurated in 1884 it's affairs have
,een fairly and pruden,ly conducted, and
hat the present administration has hon.
silly and inteliigently devoted itself to the
lerculean task of rescuiug the Union Pa
ifc Railway from Insolvency, which sc.
iously threatened it in the inception Of its
york; hat it has devoted itself by rigid
economy, by intelligent management and
" an application of every dollar of thu
arning capacity of the system to its i'm
AM betterment, 20 place tina,
ompaEy on a sound and enduring finan-
ial ourdation. The condition of the
management of the Union Pacific
has an important bearing upon
[s ab'llty to comply with the ter ms rf an.
etfis'nens o. its ind snte4n Intent. The ma. |
,rity of the Commission are in favor
I an
EXTENSION OF TIME
,r payment OF the Government indebted !
ess OF these companies upon a certain con
ition but the chairman OF the commission |
.resenting the minority report, recon-
lends both upon principle and policy the |
lsti' utlon OF proceedings for the forfeiture
the charters OF the corporations and
he wilding up Of their affairs. have
L iSiS lSu II Sld'tIueuG or ATgu- |
ient Of the defense OF the transactions |
with the construction OF he |
.ntral Pacific road and its branch lines,
which it may not be amiss to quote
r the purpose of showing how some OF
lie operations OF the directors Of such
'ad strongly condemned by commissioners
re defended by the directors themselves.
fter speaking Ola contract for the con.
ruction OF one OF these branch lines by a
called the Contract and
nance Company owned by certain direc-
RS OF the Central Pacific railroad,
THIS LANGUAGE is USED:
may be said of this contract, as of
any others, that, were it let to different
instruction COMPANIES, in which the d.
ctors OF the Central Pacific had been
ockholders, they would have built the
with money furnished by them
Ives, and had the road for their outlay.
other worgls. they paid to a construc-
company bonds and stock of the rail-
so constructed. and waited until such
ne as they coula develop sufficient bust.
IS on the road built to induce the public
buy bonds or stock. If the country
rough which the road a developed sui ,
lent business, then the project was a
ccess; II 1t did not, then the operation
IS a loss. Those Gentlemen took all the
'ponsiblllty. and the loss occurring was
cessarily theirs, and OF right the |,
PROFIT BELONGED TO THEM. !
It it is said that they violated a vel '
" rule OF eqnity in doalins with them.
YES, tha5 they were trustees and tina, q
~ were representing both sides OF the I
ntract. The auswe is that they did not $
anybody else to deal with. They could T.
t find any one who would take the !,
ances of building the road through what =
: then an almost uninhabited country K
j accept the bonds and stock of tn.
ID III payment, and when it is said that
" were trustees, if they did occury such
elatIon, 1t was merely technical. Tort they r
only their osn interests on :
tn sides. there being no one else con-.
ned in the transaction. They tecame
operators OF the company tlat was to
Id the road, subscribed for it's stock. II
! were only subscribers; therefore it is a
icult to see how ri
n n WAS wRoNNED "
their action. The rule of equity invoked, a
has its origin in the injunction no e.
n can serve too masters, certainly did o
apply to them. because they were act u
in their own inter, SITS and we're not l.
rged with the duty OF caring f,r other tt
ITS. there being no other persons inter. tt
ID inIthe subject matter" In view of this te
and the facts develored in the ~
! mlSSllnlrG rAv,nrt - ,,,, -