st mortgage
prevents their cancellation, it might be well to seek a remedy against
those who issued and transferred them. If legislation is needed to
secure such a remedy, the Congress can readily supply it.

I desire to call attention also to the fact that if all that was to be
done on the part of the Government to fully vest in these companies the
grants and advantages contemplated by the acts passed in their interest
has not yet been perfected, and if the failure of such companies to
perform in good faith their part of the contract justifies such a
course, the power rests with the Congress to withhold further
performance on the part of the Government. 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.

Any proceeding or arrangement that would result now, or at any other
time, in putting these roads, or any portion of them, in the possession
and control of the Government is, in my opinion, to be rejected,
certainly as long as there is the least chance for indemnification
through an