If donated lands are not yet
granted to these companies, and if their violation of contract and of
duty are such as in justice and morals forfeit their rights to such
lands, Congressional action should intervene to prevent further
consummation. Executive power must be exercised according to existing
laws, and Executive discretion is probably not broad enough to reach
such difficulties.
The California and Oregon Railroad is now a part of the Central Pacific
system, and is a land-grant road. Its construction has been carried on
with the same features and incidents which have characterized the other
constructions of this system, as is made apparent on pages 78, 79, and
80 of the report of the majority of the commissioners. I have in my
hands for approval the report of the commissioners appointed to examine
two completed sections of this road. Upon such approval the company or
the Central Pacific Company will be entitled to patents for a large
quantity of public lands. I especially commend to the attention of
Congress this condition of affairs, in order that it may determine
whether or not it should intervene to save these lands for settlers,
if such a course is justifiable.
It is quite time that the troublesome complications surrounding this
entire subject, which has been transmitted to us as a legacy from former
days, should be adjusted and settled.
No one, I think, expects that these railroad companies will be able to
pay their immense indebtedness to the Government at its maturity.
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