The herald., 1897-03-30

fties of the government, although in
private hands.
To secure the government against the
default of these corporations in the
payment of bonds issued to enable them
to build these railroads, there was pro-
vided in the charters a separate lien
upon all their property of every descrip-
ton in favor of the United States. The
statute provides for forfeiture on de-
fault of payment and transfers the title
and possession by act of law to the
United States. The government is thus
substituted in absolute and uncondi-
tional ownership of the corporate prop
erty of every kind in place Of the stock
holders, whose ownership thereupon
ceases. The report then points out that
this bill provides an agreement with the
owners" of the Union Pacific railroad,
| without declaring who owns it. and deals
with 1t as IL the United States is not
the owner. The bill also, it is insisted,
destroys the unity of this great highway
and proposes to separate the Union Pa
cic from the Central Pacific railroad.
Mr.. Morgan states in the report that
he will offer an amendment in the SEN
ate providing that the provisions of
the bill shall apply to both the Pacific
railroad companies. The senator says
if this fatal act of separation between
these roads has not reached conclus-
i've stage by reason of agreements made
by the president for the disposal of the
governments interests in the Union Pa
nj; Qa chO11ld 10 n
cepted and placed in the hands of this
proposed commission.
The report adds: The United States
can no more afford to have this great
highway pass beyond its reach than
Great Britain could afford to have the
Canadian Pacific railroad which, in
military sense, is the spinal column of
the empire, pass into the hands of the
American government.
The nature of such a transaction con-
demns it as an usurpation of authority
by the executive that has no support
in law. 1t is too much to ask that con-
gress shall stand by and witness
disposal of this vast property under
private agreement between the execu-
tive and a great railway combination
without even protest. The value of
the whole property is not adequate COM
pensation for such decentralization in
the abuse of executive power.
Mr. Morgan contends that the destruc-
tion of this unity will enable q great
railway combination to control trans
Iortation from New York to the Pacific
ocean, making the people along the
maj do nf fhoca ora
railroad kings. The report asserts that
the real occasion for this bill is to avoid
the disclosures and to provide for the
condonation of frauds and breaches of
trust on the part of owners and di-
rectors of the Central Pacific railroad,
which, 'if they were dealt with in the
spirit of justice, would fasten liabilities
upon these men that would far exceed
the vast sums which the company owes
to the government"
Mr.. Morgan refers to the enormous
frauds perpetrated by both of these rail-
road companies upon the United States,
the remedy for which is easily in reach
through tribunals of justice.
The report then urges that the Presi-
dent should not be left as final umpire,
as proposed by this bill, Sin a contest
between crime and public Justice The
| responsibility rests on congress, he says
and it should not unburden it on the
president.
Mr.. Morgan adds that although the
result would disappoint the powerful or
| der of railroad wreckers, yet an easy
adjustment is open by the passage of
70
statement as to the powerful engine
which the combination places under the
direction of the president and cabinet.