These were George Mechlin's thoughts as he sat, with his uncle, in the gallery of the House of Representatives, listening to a debate, a few days after their arrival in Washington. The attention of George, however, was divided between the debate and some papers he held in his hands which a member of Congress had given him. These papers contained several arguments, speeches and petitions, praying Congress to aid in the construction of the Texas Pacific Railroad, thus to help the impoverished South to regain her strength wasted in the war. Among these papers there was one which more particularly arrested his attention. It read as follows:
| 43d Congress, 1st Session. | House of Representatives. | Mis. Doc. No. 68. |
Central Pacific Railroad Company.
Preamble and Resolutions submitted by Mr. Luttrell.
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 the State of California on the 27th day of June, A.D. 1861, to construct a railroad to the eastern boundary of said State; and whereas, by Acts of Congress of the years 1862 and 1863, said company was authorized to extend said railroad eastward through the territory of the United States by an Act entitled ‘An Act to aid in the construction of a railroad and telegraph line from the Missouri River to the Pacific Ocean,’ and received from the United States, under said Act and the Acts supplemental thereto and amendatory thereof, and from the State of California and counties and corporations within said State, from the State 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 value in goldcoin of | $50,288,000 00 | |
Granted and donated by various corporations and individualswithin the State of California | 5,000,000 00 | |
Granted and donated by various corporations and individuals,situate within the State of Nevada | 3,000,000 00 | |
Granted and donated by various corporations and individualswithin the Territory of Utah | $1,500,000 00 | |
Donated by the State of California | 1,500,000 00 | |
Bonds on which the State of California guarantees andpays interest | 12,000,000 00 | |
Donated by the County of Placer, in the State of California—Bonds | 250,000 00 | |
Donated by the City and County of San Francisco—Interestbonds | 400,000 00 | |
Donated by the City and County of Sacramento—Interestbonds | 300,000 00 | |
Bonds by the United States Government | 27,389,120 00 | |
First mortgage bonds of Central Pacific Railroad Company | 27,389,120 00 | |
Second mortgage bonds of said Central Pacific Railroad,legalized by law | 15,601,741 83 | |
Second mortgage bonds, issued and sold as above | 11,787,378 17 | |
Total | $156,825,360 00 | |
And, whereas, the directors of said Central Pacific Railroad Company made contracts with certain of their own members to construct said road, known as the ‘Contract and Finance Company,’ for consideration in lands, money, and bonds, far in excess of the actual cost of construction; and,
Whereas, said Central Pacific Railroad is, and has been, completed and in running order for, in part and in whole, over six years last past, and the profits accruing from same, amounting to over —— millions of dollars per annum, has been kept and appropriated to their own use, in violation of their duties and in fraud of the United States Government; and,
Whereas, said directors of the said Central Pacific Railroad Company issued to themselves, and for their personal profit and benefit, the second mortgage bonds of said Central Pacific Railroad Company, to the amount of $27,387,120, payable in United States gold coin, with interest at ten per cent. per annum, and have, with said profits accruing to the Central Pacific Railroad Company, from the sales of United States bonds, lands, and other subsidies, as aforesaid mentioned, and the issue to themselves of the bonds aforesaid, bought, in order to defraud the Government of the United States out of the interest now due from said Central Pacific Railroad Company, other roads in the State of California, and expended in doing the same, all the accruing profits of said Central Pacific Railroad for the benefit of the directors, failing and fraudulently refusing to pay the Government of the United States, the interest legally due on said mortgage bonds; therefore, be it