Monopolies -- United States; Railroads and state -- United States
The administration of the laws being confided to the executive
department of the government, their impartial and honest administration
is of the greatest importance to the people. Congress, without the
constitutional right, having granted charters and made large grants of
lands and bonds to railroad companies, it became necessary that the
executive department should have some kind of supervision over the
companies. In the issuing of bonds and certificates for land grants; the
transportation of mails, troops, etc.; the appointment of government
directors, inspectors, and engineers; the transmission of telegraphic
dispatches, and respecting many other matters connected with these
corporations, special duties were imposed upon the president and members
of his cabinet. The government directors, under the statute, had a place
on all business committees of the Union Pacific railroad company. They
were government officers, appointed by the president, and were to
report, from time to time, upon the progress of the work, and condition
of the roads. They were prohibited from owning stock, or being
personally interested in the roads. Their reports were to be made to the
secretary of the interior. If these government directors had faithfully
performed the duties laid upon them by the law, the contract of the
directors of the railroad company with the Credit Mobilier company could
not have taken place without their knowledge, which fact should at once
have been communicated to the secretary of the interior. Nor could the
directors of the railroad have organized themselves into a Credit
Mobilier company and contracted with themselves to rob the government
and defraud the people, without the knowledge of the government
directors. And, unless we concede that they were totally unfit for the
discharge of the duties imposed upon them by statute--"more sinned
against than sinning"--we must conclude that they had full knowledge of
all the abuses being practiced by the railroad companies, and failed to
discharge their official duties. The national reputation these
government directors had achieved in the halls of congress, and
elsewhere, precludes the idea of their being ignorant of what they
should have known, and we are forced to conclude that they had this
guilty knowledge of the frauds being perpetrated upon the government and
the people. Their action in the premises can only be explained on the
ground that they were subject to the same railroad influences which have
controlled congress and state legislatures. If their action was not
governed by corrupt motives and pecuniary considerations, that
persuasive influence which emanates from these corporations, blinded
their minds and warped their judgments to such an extent as to induce
them to wink at the frauds of the companies in the construction of their
roads and the prosecution of the business connected therewith. Recent
investigations show that some of those directors were controlled in
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