Year: 1864

KA1LROAD.


To Gae Board of Supervisors and to the Citizens


ef Placer County:


Il S PRESIDENT OF THE BOARD OF SU-
IA PERvISORS of your county, and by law
entrusted with the responsible duty. of guarding g
the interests of the county, have felt it my duty
TO lay before you statement of my official action
as q member of the Board while acting rs a Com
mttee to examine the books OF the Central Pacific
Railroad Company of California. The duty ls
to me one Of extreme delicacy and unpleasant
ness, inasmuch rs my relations towards that Com
pany, majority Of its officers and managers.
have been, and still are, of the most friendly
character; but my judgment debating that M
public relations should ever outweigh all feelings
of mere personal nature. have been lnduoeQ
to action in this matter, as 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
o more perfect understanding Of the subject:


The county of Placer is 4 stockholder IN the
Central Pacific Railroad Company to the extent
Of $25000O, 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. q
special annual railroad tax was to be levied as .
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 appertanng to the other sharehold-
ers 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-
estcd. manages its affairs with honesty and idel-
ity, and applies its revenues and resources in such
| a manner as not only in rs speedy manner as
possible carry out the great work in which it
| is embarked, the completion of which the State
al large, and the county in particular, are so
vitality interested, but also that the stock should
rs soon as possible become remunerative by the
declaration of dividends, so us to Tighten our
county from the burden of continuous and ruin
GUS taxation. Actuated by these principles, and
also impelled by the fact that numerous reports
were in circulation throughout the county detrl-
mental to the interests of the Railroad Company,
founded upon the assertions that the Directors of
| the Company have, in many instances acted in
bad faith towards the Company through contracts
entered into by them, the improper and prodlga


issue and use of stock for illegal purposes, want
| of good faith in their intention pi pushing for
ward The work to the State line at as early day
! as possible. tavortism shown by the Directors to-
wards the Directory in the allotment Of contracts
| lavish expenditure of the funds of the Company


and other improper acts. The Board OF Super
vsors deemed that an Investigation made by them


into these matters, and report thereupon to you,
| in the event of the same proving satisfactory,
which at that time the Board had no reason to
doubt. would have placed the matter beyond fur
! ther cavi, and resulted equally to the advantage
of the Company and the county. The Board


therefore, in the first place, appointed special
committee of two, and selected for that purpose
the Hon. J. E Hale aud 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
discharge the duty assigned to them.


| After this action had been officially taken by
the Board, the Railroad Company. through its
Superintendent and Attorney, appeared before
the Board and most urgently sought the rescind-
ing Of the resolution, averring that the exalnna
ton would. for various reasons, be highly detrl-
mental to their interests, and would affect their
various fiscal negotiations then in progress; and
particularly did they object to the investigation
being made by any 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 from its former action. and constituted
themselves as Committee for the purpose Of
said examination Thus it will be seen that this
position was not courted by the Board, or sought
after, but forced upon them, rs 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 office 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. enquired II
the Board had made out any definite course by
which they intended to conduct the examination
when he was informed by me. that as majority
of the Board had declined to obtain either tht
services of their own Clerk, or some other com
petent expert to conduct the examination fo
them. had prepared series of questions, whcl
desired to receive answers to, aud information
upon, so that might report the same to the citi
zens of the county, in the form of report. Th
questions were then produced, read and a cop,
l,vyt thn


matter with thai officer. several of the member
of the Board OF Directors of the Company jone'
in the discussion, and from the character and tom
of their remarks soon gave me to understand
not only that the information should not he fur
nished, or the questions answered in full, but tina
/ should, if | persisted in cndeavorng to max
the Investigation, be subjected to series of petit


personal insults with view of endeavorng It
force me to abandon the examination. In thl
view was more fully confirmed, when one Of m,
colleagues suggested that if he were situated rs


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 tn


necessity Of the proposed examination. |, at tn
same time stated that. my friendly relations to
wards the railroad enterprise were well known


and that it rested with them whether the enemie


of the G. mpany should have the opportunity o


injurng the road in public opinion, through thei


refusal of atfording their stock holders proper ant


legitimate information. On again Ieman ndng tn,
privilege of inspecting the companys books,
was shown the stock book, and on proceeding t.


make some extracts from it (Which alone would


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


you.) was percmptorily forbidden to make any


such. | then asked to see the record of corpora


tion debts. This was, with reluctance, shown t.


me- and again was refused the right to abstrac


anything from it in the way of information.


suppose that might have had permission to hav


read the various entries, had l been SO disposed


but moments reflection will show that such


privilege was nothing but a mockery, as no mem
ory would be competent to charge itself with tn


various entries therein contained, or by its ali


alone furnish statement in any manner reliab
| or int This action thp nnpt IF he Il