Year: 1864




RAILROAD.


To the Board Of Supervisors and to the Citiz ems
of Placer County;


A S PRESIDENT THE BOARD OF SU-
IA PERVISORS of your county, and by law
entrusted with the responsible duty Of guarding
the interests OF the county, have felt It my duty
TO lay before you statement of my ofcial action
as member Of the Board while acting rs a Com
mittee to examine the books OF the Central Pacific
Railroad Company of California. The duty is
to me one of extreme delicacy and unpleasant
ness, inasmuch as my relations towards that Com
pany, a majority of its officers and managers
have been, and still are, of the most friendly
character; but my judgment debating that my
public relations should ever outweigh all feelings
of mere personal nature have been induced
to action in this matter, rs my duty has suggest
| ed. short preliminary history of the reasons
for the appointment Of the Committee and the
manner Of its appointment, deem necessary for
more perfect understanding of the subject:


| The county of Placer is II stockholder in the
Central Pacific Railroad Company to the extent
of $3.50, 900. upon which it is paying an ANIMAL
interest of $4,000. The subscription having been
made by the issue of county bonds, redeemable in
twenty years from date. After the year 1868. a
special annual railroad tax was to be levied as Il
sinking fund to redeem said bonds and accruing


interest. The county holds its stock as all other
stockholders, and the Board Of Supervisors have
all the rights appertaining to the other sharehold-
crs of the capital stock Thus it becomes their
special duty to see that the company in whose in
terest and welfare the county is so deeply inter-
ested manages its affairs with honesty and tide-
ity, aud applies its revenues and resources in such
a manner us not only in rs speedy manner as
possible carry ont the great work in which it
is embarked the completion of which the State
at large. and the county in particular. are so
vitality interested, but also that the stock should
ns soon as possible become remunerative by the
! declaration of dividends so as to tighten our
county from the burden of continuous and ruin
Gus taxation. Actuated by these principles, and
also impelle1 by the fact that numerous reports
were in circulation throughout the county detri-
mental to the interests OF the Railroad Company,
| founded upon the assertions tn the Direct tors of
| the Company have, in mlny instances, acted in
bad faith towards the Company. through contracts
| entered into by them, the improper and prodigll
issue and of stock for illegal purposes. want
of good faith in their intention ol pushing for
ward the work 10 the State line at as early a day
us possible. tavOritism shown by the Directors to-
wards the Directory in the allotment Of Ontracts,
lavish expenditure of the funds Of the Company
and other improper acts. The Board of Super
visors deemed that IN investi CATION made by them
into these matters. and report thercupon 10 you.
in the event Of the same proving satisfactory,
which at that time the Board had no reason to
doubt. would have placc,i the matter beyond fur
thcr cavil, and resulted equally to the advantage
! oil the company ana tne Inc
| therefore, in the first place appointed special
committee of two. and selected for that purpose
the lion. J. Hale and the Hon. F. B. Higgins,
both gentlemen Of the highest moral standing in
the county. and eminently qualified from their
business qualifications faithfully and efficiently to
| dischl the duty ass gned to them.


| After this action had been officially taken by
the Board. the Railroad Company. through its
! Superintendent and Att rney. appeared before
the Board and most urgently sought the rescind-
ing of the resolution. averIing that the examna
ton would. for various reasons be highly detri-
mental to their interests, and would affect their
various fiscal negotiations then n progress; and
particularly did they object to the invesli CATION
being made by ady other parties than the Board
themselves. This application, pressed upon the
Board in the most forcible manner possible, and
upon assurances that if the Board would under
take the duty the utmost facilities should be af-
forded to them, the Board WAS induced to with
draw ii ON its former action. and constituted
themselves as Committee for the purpose Of
said examination Thus it will be seen that this
position was not courtcd by the Board, or sought
after, but forced upon them, as it were, by the
express request of the Railroad Company. On
| the 9th day of September the Committee met at
| Sacramento City, and repaired to the ohce OF the
Railroad Company, prepared to make the neces-
sary investigation. On stating to the Secretary
Mr.. Miller, the object OF our visit. Mr.. Hopkins
one of the members of the Company. enqured il
the Board had made out any definite course by
| which they intended to conduct the examinations
when he was informed 10y me- that as majority
of the Board had declined to obtain either the
services of their own Clerk, or some other com
petent expert to conduct the examination fol
them I had prepared series of questions which
| desired to receive answers to, and information
upon, so that might report the same to the citi
zens of the county, in the form OF report The
questions were then produced, read and a copy
taken by the Secretary. While discussing the
Will hat pffip nf a he
of The Board OF Directors OF the Company Joined
in the discussion, and from the character and tone
of their remarks, soon gave me to understand
not only that the Information should not be fur
nished, or the questions answered in full, but tha
| should, il persisted in endeavOring to make
the investigations be subjected to series of petty
personal insults, with view OF endeavoring tt
force me to abandon the examination. In this
view WAS more fully confirmed, when one OF my
colleagues suggested that if he were situated as
were, that he would return to his home. No


feeling satisfied. however. to permit such unbe
coming conduct to withdraw me from the dis
charge of my duty, informed the parties that


had come to the Office for the purpose Of obtain
ing answers to my questions, and that until hat
received them or their refusal should not, from
any cause, abandon the inquiry; and that iron
their actions was more than ever satisfied of th
necessity of the proposed examination. l. at thu
t same time stated that my friendly relations to
wards the railroad enterprise were well known
and that it rested with them whether the enemies
| of the g mpany should have the opportunity o.


injuring the road in public opinion through theiI
refusal Qt aforling their stockholders proper and
legitimate information On again Lemtnding the
privilege OF inspecting the companys books,
was shown the stock book, and on proceeding tC
make some extracts from it (Which alone would


have enabled me to have obtained data where
with to make any kind of ineligible report to


you.) was percmptorily forbidden to make any


such. then asked to see the record OF corpora


ton debts. This was with reluctance. shown to


me. and again was | refused the right to abstract
anything from it in the way of Information.
suppose that night have had permission to have
read the various entries, had been so disposed


but moments reflection will show that such


privilege was nothing but mockery, rs no mem
ory would be competent to charge itself with the
various entries therein contained, or by it's aid


alone furnish statement in any manner reliable