January 12, 1874.--Referred to the Committee on the Pacific Railroad,and ordered to be printed, together with accompanying papers.
"_Whereas_, The Central Pacific Railroad Company was incorporated by theState of California on the 27th day of June, A.D. 1861, to construct arailroad to the eastern boundary of said State; and whereas, by Acts ofCongress of the years 1862 and 1863, said company was authorized toextend said railroad eastward through the territory of the United Statesby an Act entitled 'An Act to aid in the construction of a railroad andtelegraph line from the Missouri River to the Pacific Ocean,' andreceived from the United States, under said Act and the Actssupplemental thereto and amendatory thereof, and from the State ofCalifornia and counties and corporations within said State, from theState of Nevada, and from the Territory of Utah, the following amounts,estimated in gold coin, to wit:
Land granted by the United States of the $50,288,000 00 value in gold coin of ------------------------------------------------------------------- Granted and donated by various corporations 5,000,000 00 and individuals within the State of California ------------------------------------------------------------------- Granted and donated by various corporations 3,000,000 00 and individuals, situate within the State of Nevada ------------------------------------------------------------------- Granted and donated by various corporations $1,500,000 00 and individuals within the Territory of Utah ------------------------------------------------------------------- Donated by the State of California 1,500,000 00 ------------------------------------------------------------------- Bonds on which the State of California 12,000,000 00 guarantees and pays interest ------------------------------------------------------------------- Donated by the County of Placer, in the 250,000 00 State of California--Bonds ------------------------------------------------------------------- Donated by the City and County of San 400,000 00 Francisco--Interest bonds ------------------------------------------------------------------- Donated by the City and County of 300,000 00 Sacramento--Interest bonds ------------------------------------------------------------------- Bonds by the United States Government 27,389,120 00 ------------------------------------------------------------------- First mortgage bonds of Central Pacific 27,389,120 00 Railroad Company ------------------------------------------------------------------- Second mortgage bonds of said Central 15,601,741 83 Pacific Railroad, legalized by law ------------------------------------------------------------------- Second mortgage bonds, issued and sold as 11,787,378 17 above ------------------------------------------------------------------- Total $156,825,360 00 -------------------------------------------------------------------
And, whereas, the directors of said Central Pacific Railroad Companymade contracts with _certain of their own members_ to construct saidroad, known as the 'Contract and Finance Company,' for consideration inlands, money, and bonds, far in excess of the actual cost ofconstruction; and,
Whereas, said Central Pacific Railroad is, and has been, completed andin running order for, in part and in whole, over six years last past,and the profits accruing from same, amounting to over ---- millions ofdollars per annum, has been kept and appropriated to their own use, in_violation_ of their duties and _in fraud_ of the United StatesGovernment; and,
Whereas, said directors of the said Central Pacific Railroad Company_issued to themselves, and for their personal profit and benefit_, thesecond mortgage bonds of said Central Pacific Railroad Company, to theamount of $27,387,120, payable in United States gold coin, with interestat ten per cent. per annum, and have, with said profits accruing to theCentral Pacific Railroad Company, from the sales of United States bonds,lands, and other subsidies, as aforesaid mentioned, and the _issue tothemselves_ of the bonds aforesaid, bought, _in order to defraud_ theGovernment of the United States out of the interest now due from saidCentral Pacific Railroad Company, other roads in the State ofCalifornia, and expended in doing the same, all the accruing profits ofsaid Central Pacific Railroad for the benefit of the directors, failingand _fraudulently refusing to pay the Government of the United States_,the interest legally due on said mortgage bonds; therefore, be it
_Resolved_, That a select committee of seven members of this House beappointed by the Speaker, and such committee be and is hereby instructedto inquire whether or not any person connected with the organization orassociation commonly known as the 'Contract and Finance Company' of theCentral Pacific Railroad Company, now holds any of the bonds, lands, orother subsidies granted said company, for the payment of which, or theinterest thereon, the United States is in any way liable; and whether ornot such holders, if any, or their assignees of such bonds, lands, orother subsidies, are holders in good faith, and for a valuableconsideration, or procured the same illegally, or _by fraud_; * * * andto inquire into the character and purpose of such organization, andfully, of all the transactions of said Central Pacific Railroad Company,and all transactions had and contracted by and between the directors ofthe Central Pacific Railroad Company and Charles Crocker & Co.; and ofall transactions and contracts made by said directors with the 'Contractand Finance Company' for the furnishing of material of every kind andcharacter whatever, and the construction of the Central Pacific Railroadand other branch roads connected therewith; * * * and to report thefacts to this House, together with such bill as may be necessary toprotect the interests of the United States Government and the people, onaccount of any bonds, lands and subsidies of the class hereinbeforereferred to, and against the combinations _to defraud the Government_and the people; and said committee is hereby authorized to send forpersons and papers, and to report at any time."
Here follows a long recital of _frauds_ perpetrated by Messrs. LelandStanford, Huntington, Crocker and Hopkins, under the name of "CentralPacific Railroad Company" and "Contract and Finance Company," etc. Saidfrauds, Mr. Luttrell says, were against the Government and against thestockholders of the Central Pacific Company. A Mr. Brannan, in a longcomplaint, sets forth also how and when these gentlemen _cheated_ theGovernment by presenting _false statements_ of the cost of constructingthe Central Pacific Railroad, and in other ways, and _cheated_ thestockholders of said railroad by issuing _to themselves_ the stock, andappropriating other subsidies, which should have been distributed _prorata_ among all the stockholders.
The entire statement is a shameful exposure of disgraceful acts, any oneof which, were it to be perpetrated by a poor man, would send him to thepenitentiary.
George was shocked to read Mr. Luttrell's "_Preamble and Resolutions_,"and Mr. Brannan's "_complaint_." Mr. Lawrence Mechlin waited to readthem in the evening, at his hotel.
"These two gentlemen ever since their arrival had heard strange rumorsabout Congressmen being '_bribed with money_,' and in other _waysimproperly influenced by 'a certain railroad man,' who was organizing apowerful lobby to defeat the Texas Pacific Railroad_." In his endeavorsto aid Tom Scott, Mr. Lawrence Mechlin had come across some startlingfacts regarding the manipulation of railroad bills, especially in theCongressional committees. Still, he was loth to believe that briberywould be so openly used. He was a man of strict probity, slow to thinkany man dishonorable. George, brought up in the same school, felt, also,a reluctance to believe that the Congress of these United States couldbe packed, bundled, and labeled, by a few of its treacherous members,who would sell themselves for money, in spite of their honestcolleagues.
"Pshaw! the thing is too preposterous," he had said to his uncle, who,with saddened voice, had answered.
"So it seems to me. Let us go to the Capitol again; I want to speak tosome of the Representatives; I have only seen Senators; I must talk withthe House a little." And they had come, and were now listening to theHouse.
George's business with th
e Attorney General had been more satisfactory.The appeal was at last dismissed, and the joyful news had beentelegraphed to Don Mariano. There was now no dispute about the validityof his title. The Government itself had said that the land belonged tohim; would the squatters vacate now? We will see. Meantime, theremittitur had to be sent to the court below, and it was expected thatCongress would soon make an appropriation to defray expenses ofsurveying lands in California. George wrote to Don Mariano not to engageany surveyor to survey his rancho, as there would be an appropriationmade for lands to be surveyed by the Government.
Elvira and Mercedes were made very happy on hearing that the appeal wasdismissed. They did not well understand what it all meant; but as theywere told that now the Government of the United States had said that therancho belonged to their father, they naturally concluded that thesquatters would go away, and there would no longer be any trouble aboutthe destruction of their cattle, and their father not be so worried andunhappy.
Thus, life seemed very sweet to those two innocents, and they enjoyedtheir visit to Washington to the fullest extent. The Gunthers andSeldens had stopped at the same hotel with the Mechlins, and the threefamilies were constantly together. Their parlors in their evenings "_athome_" were filled with a crowd of distinguished visitors; otherevenings were given to parties and receptions. One cloud only cast ashadow on Mercedes' brilliant surroundings, and this was the obviousmisery she saw in Arthur Selden's dejected countenance, and a certaindread she felt at the silent coldness of Robert Gunther. His eyes seemedto her darker than they used to be, but perhaps they seemed so becausehe was so much paler. But what could she do? she asked herself, andwished very much that these two young gentlemen had remained in NewYork, for, surely, they couldn't expect that she would give up Clarence!No, indeed. Not for fifty thousand Gunthers, or two million Seldens.
There were times when the coldness of these two young gentlemen was verymarked, and, amiable as she was, she felt it. But her Clarence wasalways near, and his superb eyes were watching, ready to come to her atthe slightest indication. It was so sweet to be so quickly understoodand so promptly obeyed by him.
There had been a brilliant ball at one of the legations, and on thefollowing morning the Seldens and Gunthers were discussing the event inMrs. Mechlin's parlor.
"You made two new conquests last night," said the eldest Miss Selden toMercedes. "Those two _attaches_ are now your new slaves. They areawfully in love. I felt pity for them, to see them so completelycaptivated. You ought to be proud."
"I don't think they are in love, but, admitting it is so, why should Ibe proud? I should be annoyed, that's all," replied Mercedes.
"Do you expect us to believe that?" Miss Selden asked.
"You may believe it, for it is the truth."
"You are a strange girl, then."
"Why so? Why should I wish men to fall in love with me, when I cannotreturn their love?" said Mercedes, evidently vexed.
"You are the first girl I ever saw that did not want to have admirers;yes, loads of them."
"Admirers and friends, yes; but you spoke of those young men being _inlove_. Now, if I thought so, I would be very sorry, and, as I do notwish to be unhappy, I hope you are mistaken."
The Misses Selden laughed incredulously.
"In my opinion, no kind-hearted girl ought to desire to be loved exceptby the one she loves. Else, she must be a very heartless creature, whoenjoys the miseries of others," added she, earnestly. "Now, I want youto know, I am not cruel; I am not heartless; so I do not wish any man(but one) to be in love with me."
"You are right, my dear," Mrs. Gunther interposed. "But the trouble is,you are too pretty, too sweet, to be let alone; you can't help beingloved."
"Then I am unlucky, that's all," she said, with trembling lips, "and thesooner I go home, the better it will be for mutual comfort."
Robert Gunther was talking with Elvira, but he had not lost one word ofthis conversation. In the evening they went to a Presidential reception.It happened that he was near Mercedes when Elvira proposed to go and seethe flowers in the conservatory; he offered her his arm, and theyfollowed Elvira. He had spoken very few words to her since they returnedfrom Newport, but had watched her and feasted his eyes on herloveliness. Now, after walking in silence for some time, he said:
"It is a sad sort of consolation to know that you regret inspiringhopeless love. I heard your conversation with the Misses Selden thismorning. I thank you for not enjoying my misery."
"Oh! how could I do that? I wish I could make you happy; please forgiveme if I have ever caused you pain?" said she in the sweetest of pleadingtones. He looked at her sweet face, turned toward his, and his love forher seemed to rush upon him like an overwhelming wave--like a hot flamerising to his brain.
"Oh! Mercedes, it is frightful how much I love you! What shall I do toconquer this unfortunate infatuation?"
"Forget me; I shall soon be away--far away."
"Oh! darling, I would rather suffer seeing you, than to have your sweetpresence withdrawn from my sight. You see my unfortunate situation? Ivow it is awful to love so hopelessly! But I shall never talk to you ofmy love again. I see I pain you," he added, seeing that she trembled andlooked pained. "Forgive me, for I am very wretched. My life will now bea blank."
"I wish you could feel for me, as you do toward Elvira. How I envy heryour friendship," she said, in very low tones.
"Do you, truly?"
"Indeed I do. I would be so happy."
"I shall try. But how can I, loving you so ardently?"
"As a proof of your love, try to be my friend--only a friend."
"You ask of my love a suicide--to kill itself. Be it so. I shall try,"said he with a sad smile. "The request is rather novel, but perhaps itmight be done. I doubt it. I suppose you will be my friend then?"
"I am that now--most sincerely," said she, earnestly.
On leaving the conservatory, they saw Clarence coming to meet them. Hejoined Elvira and walked by her side.
"Thanks, Mr. Darrell. I am glad you have good sense," said Gunther,addressing the back and broad shoulders of Clarence from the distance.Mercedes laughed and felt herself regaining her composure.
They had now been in Washington ten days, and the ladies of the partyhad only made one very hurried visit to the Capitol. This day Mrs.Mechlin had set apart "to devote to Congress," she said, and it wasarranged that they would go in the morning, would lunch at the Capitol,and remain part of the afternoon. A debate on the Texas Pacific Bill wasexpected that day, and the Mechlins, as well as Clarence and Mercedes,wished to hear it. The President of the Senate put his rooms at theservice of Mrs. Mechlin and friends. Thus the ladies had a delightfultime, taking a recess in the President's parlor when they liked, orstrolling through the corridors, or sitting in the galleries.
After luncheon, the party, walking toward the public reception room,were met by five or six old men with very white beards. Two of themwalked slowly as if weakened by sickness, one walked on crutches, andone had lost an arm, his coat-sleeve being pinned to his breast. Mr.Mechlin stopped to shake hands with them, saying to his wife to go on,that he wished to speak with these gentlemen. On rejoining the party,Mr. Mechlin was asked by Miss Gunther where these venerable oldgentlemen came from.
"They looked like a little troop of patriarchs," Miss Selden added."What can they want at the Capitol?"
"They want bread," Mr. Mechlin replied. "Those men should be pensionedby our Government, but it is not done because Congress has not seen fitto do it. The three oldest of those men are veterans of the Mexican War.For twenty-five years they have been asking the Government to grant thema pension, a little pittance to help them along in their old age, but itis not done. Year after year the same prayers and remonstrances arerepeated in vain. Congress well knows how valuable were the services ofthose who went to Mexico to conquer a vast domain; but, now we have thedomain, we don't care to be grateful or just. It would perhaps be amatter of perfect indifference to half of our Congress shoul
d they hearthat all those poor veterans died of starvation."