The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-02-01
THE BIG PROTEST
AGAINST FUNDING.
CALIFORNIA; Memorial TO the
Congress of the United
States.
FORECLOSURE DEMANDED.
Full Text of the Committees
Petition on the Pacific Rail
roads Question.
A PLAIN. STRONG DOCUMENT.
Unanimously Endorsed and Signed by
Every Member of the Orig.
inal Committee.

Following is the full text of CALIFORNIA;
memorial to Congress protesting against
the passage of any act to refund the debt
of the Pacific railroads and demanding
the foreclosure of the mortgages by the
National Government.
1t is a powerful document, clearly. and
tersely worded, yet covering the ground
thoroughly and setting forth in unmis-
taxable language the feelings of the people
of the entire Pacific Coast on the refund
ing measure, and at the same time giving
the main facts upon which the people base
their demand for simple justice as be-
tween themselves and the robber railroad
kings of the Pacific system.
The memorial is the joint production of
M. NJ. Estee, Henry E. Highton and John
P. Doyle, who were chosen as a sub-com-
mittee OF the main committee selected by
the State Anti-Funding Convention held
In this City two weeks ago to-day.
\ Yesterday morning at final meeting of
the memorial committee proper, held at
the Mayors Office in this City, the follow
ing document was unanimously adopted
Afterward it was signed by every member
OF the committee.
Memorial annexed to preamble and resolutions
adopted by the State Anti Funding Convention,
Saturday, January H. 1896 held at Metropoli-
tan Temple San Francisco, Cal, prepared bv
committee appointed for that purpose by the
convention, with full power to act.
The undersigned, a committee appointed for that
purpose, with full power act, by the Anti Fund
ing Convention, held at Metropolitan Temple, San
ialize the Senate and House of Representatives OF
The United States, against each and every measure
for re-funding the secured indebtedpess Of the Cen
trail Pacific Railroad Company and in favor of
foreclosure OF the mortgages given to secure that
Indebtedness.
Fxpress ed in q sentanra tha rao,la os ,,,;= S.o,o
consider the welfare OF the State itself TO be in
volved in the new schemes of Mr.. Huntington and
his associates and, with the earnesness and deter
mlnatlon OF men defending their property and
their lives, denounce any conceivable plan of re-
destructive TO them and to their descendants, as
purely fraudulent, and as designed to place them
who are and have been their greatest enemies
ISSUES TO BE CONSIDERED.
The issues TO be considered in this memorial
while OF the greatest pecuniary importance, and TO
Mr. Huntington and his associates of no conse-
quence in any other aspect, nevertheless trans
eend all merely monetary considerations for the
reason that they touch the sacredness and the
supremacy Of the law, and in that way the honor
of the Government itself.
With the greatest respect, but positively we OBJ
2ect 10 any action whatever by Congress, or its
Central Pacific Railroad Company as an un-
warrantable interference opposed 10 the spirit OF
tIation OF the law. The entire question is now
ripe for Judicial action tb -ough the executive and
according 10 all precedent and in harmony with
the distribution of powers in the constitution,
should be treated exclusively through those
branches of the Government AS the chairman of
the present Committee Pacific Railroads OF the
House of Representatives has already in effect
announced, if Congress takes any action in this
powers and this is opposed equally to the theory
OF our Governmental system and to all just practice
In the lstory OF the United States.
THE TASK CONGRESS.
To arrive at finding of fact and conclusions
upon which any enactment could be intelligently
based, Congress would be compelled TO investigate
enormous records and intricate facts which have
accumulated within thirty years. and which, in
proper sense are even now sub judice ami IL his
work be not done under the rules and principles
which govern courts, and with judicial thorough
legislation that would even wear the garb of jus-
tce would be wanting. Ard this essential process
numerous and com pcaued legal issues for the de-
termination Of which the judicial department has
been established.
The contracts between the Government and the
Central Pacific Railroad Company are matters for
judicial ana not for Congressional interpretation
The facts which have TRANSFERRED under and In rela-
ton TO these contracts are obviously within the
range of judicial inquiry and decision.
We submit, therefore, that this preliminary oh
lection 10 any proposed legislation ought be con-
trolling. After foreclosure and such other action
fere.
1ecton, the merits OF the controversy are TO be
considered.
FACTS OF THE CASE
1t is not true that the Central Pacific Railroad
Company is an honest debtor, or that it is entitled
10 favorable treatment at the hands of Congress.
The facts are that in 1851 the Central Pacific
Railroad Company was incorporated under the
laws of California. The constitution of California
prescribed then as now thar aIach sto+.kboider of
corporation or Joint stock association shall be in
dividualy and personally liable for his proportion
Of its debts and LIABILITIES" (section So. Article
The Supreme Court OF the State Of California in
terpreted this section OF the constitution in the
case OF french VS.. Teschamacker, "a Cal, SIS, as
follows:
at is unconstitutional for the Legislature to re-
a n n tfr- hvo
ual lability."
And as each stakeholder Of the Central Pacific
State OF California, is bound for his proportionate
share of all the debts and liabilities of the corpora
VIII legally relieve him from such responsibility.
THE DIRECTORS LIABLE.
The directors Of this corporation also person
ally liable for much ofits Indebtedness. Directors
OF corporation are trustees of an express trust
They are held 10 strict accountability for all they
do as such trustees. Their position is one OF con-
hdence, and when they violate their duty they are
anenaole TO the law, and neither the great polii-
corporation of which he is a stockholder and direc-
Tor can De Justly or legally invoked to relieve any
~ nun 1iie l,ettoTnlance OF theSe duties
or from the responsibility which nonperform-
ance OF them imposes upon him.
says Aorawetz on corporations (section 243)
''Ihe directors of corporation occupy a position
of the highest trust and confidence and the utmost
good taith is required in the exercise of the powers
conferred upon them"
The admitted facts show that, practically four
men living in Sacramento. in the State of Califor-
MA, namely, &. =. Huntington, Mark Hopkins
Charles Crocker and Leland Stanford, incorpor-
ated The Central Pacific Railroad Company and es
saved TO build its road. None of these men wera
capitalists The assessed valuation OF all their nron-
erty did not reach $3.50 900. They were unable IN
build the road from their own resources The Civil
War vas then going The Eastern and West
ern States Of the Union demanded closer and
more intimate connection with each other The
time Tor the building OF National highway across
the continent was proptious, and Congress WE s
spurred TO an unusual liberalty
The people of California, although few in nuYn-
her, were generous TO n fault. And the most mn
nificent grants and DONATIONS ever MADE by a Gov
eminent or by a people 10 private citizen or a
corporation were at that time made 10 the Central
Pacific Railroad Company. The following is a
statement OF some Of The principal grants and do
nations OF land and money made:
A NATIONAL GRANT
Congress granted 10 this corporation every other
section of land for twenty miles each side of its
contemplated road for the whole length thereof
ana also the oregon branch of that system
amounting in The aggregate 70 10000, 900 acres OF
the value of fully $l2 100000. 1t is reported that
they have already obtained about that amount in
sales OF those lands. The Government fixed the
value OF its own adjoining land at 50 SO acre.
AT the time the National Government
issued 10 tn company its mortgage bonds in the
sum Of $27.000,000 lin round numbers), which