the right to alter, amend, or repeal the act and to alter or amend the joint resolution, having due regard for the rights of the Northern Pacific and other parties. I stated repeatedly through the hearings that the rights of the Northern Pacific could not be in excess of what their fulfillment of their legislative contract with the United States had been. Undoubtedly under the Sinking Fund cases (99 U. S. 708) (p. 1488) there is a limit to the power of Congress to alter or amend, and an unjust alteration or amendment would be rejected. Manifestly, the Northern Pacific can not demand a full 100 per cent performance from the United States when the performance by the Northern Pacific has fallen far short of 100 per cent under its side of the legislative contract. In A. & P. Railroad Co. v. Mingus (165 U. S. 413) the Supreme Court said the company was not in a position to demand of the Government a strict and literal performance of its obligations when it so completely failed to meet its own. No court has ever construed the reserved right to alter or amend to the effect it may not be invoked by Congress to recover from the railroad any and all lands received by it from the United States over and above what it was entitled to receive. This reserved right to alter, amend, or repeal is of direct application to the excess acreage of the grant through Washington, the erroneous selection in the second indemnity limits by reason of the Crow Indian Reservation, the fraudulent mineral classification under the act of February 26, 1895, the Wallula overlap, and all other credits the Northern Pacific has received for acreage it was not entitled to, and otherwise. The position of the Northern Pacific that for the lands of its grant to which it has received full and complete title that the United States may not effectuate a recovery of these lands, is unsound. In the Oregon & California cases many thousands of acres of land were in the possession of the railroad company under full and complete title, subject to enforceable covenants. Title to all of these lands was revested in the United States by act of Congress. Any unsatisfied shortage in the acreage of the Northern Pacific land grant will contain approximately 2,400,000 acres of mineral base resulting from the classification of the lands of the grant under the act of February 26, 1895. Classifications made under this act were not made in conformity with the provisions of the law. The mineral commissioners were dominated by the Northern Pacific, and under their classifications the valuable lands of the grant passed to the company irrespective of their mineral or nonmineral content, and the valueless land turned back to the Government. The classification work was fraudulent, and the Northern Pacific was a party to the fraud, as is clearly demonstrated by the testimony of Mr. W. W. McElroy, a former employee of the Northern Pacific in connection with the classification of the lands in Idaho (p. 5150). The United States upon well-established grounds may protect itself against this fraud. The foregoing remedies of the United States arise under the legislative contract itself and are more than ample to protect the interests of the Government if Congress wishes to invoke them. In addition thereto is the right of eminent domain, which Congress may invoke if necessary. INDEX Act of July 2, 1864, containing original land grant to Northern Pacific a Federal charter and providing for first indemnity limits----- Act of July 1, 1868, extending the time for completing the Northern Act of March 1, 1869, authorizing the Northern Pacific to issue bonds_- Adjustment of Northern Pacific land grant under the decision of the Adjustment of second indemnity limits by Secretary of Interior thereby Attorneys General Harmon and Moody, opinions of.. Page 5099 5100 5100 5100 5100 5103 5107, 5109 Boyd cases covering 1896, reorganization of Northern Pacific_. 5178 5115 Choate, Joseph, attorney for Villard, statement that issuance of common Cooke Jay, becomes member of original interests, also fiscal agent Cooke, Jay, has passed resolution May 31, 1870_. 5255 5187 4282, 5188 Cost of constructing the Northern Pacific Railroad and the values that 5268 5104, 5166 Donnelly, Charles, president of the Northern Pacific Railway Co., ref- 5106 5179 Errors in land grant at Portland terminal, Ainsworth terminal, and in 5112 5172 Forester's letter of January 12, 1924, in which 22 points are raised in 5104 5178 History of the Northern Pacific Railroad Co., by W. F. Bailey- 5177 History, legislative, of the Northern Pacific Railroad Co------ 5185, 5220, 5279 5178 Heath case.... 5175 Hearings before House Committee on the Public Lands 5097 Hearings before Senate Committee on Public Lands and Surveys__ 5097 Withdrawals of for national-forest purposes. 5101 Withdrawals of for Northern Pacific against settlers held in- 5101, 5277 Indemnity lands-Continued. Withrawal of for Gallatin National Forest and erroneous issuance Page 5102 5103, 5105 5107, 5109 Indemnity selections made by the Northern Pacific within the in- Indemnity selections made by Northern Pacific within limits of Kalama terminal, error at, no deduction_. Lands of the grant owned by the Northern Pacific Railway Co. and the Right of the Northern Pacific to place but one under the resolution 5267 5276 5129 5142 5101 5113 5279 5222 5099, 5182 Right to mortgage specifically denied in act of July 2, 1864_. Jay Cooke mortgage and six additional mortgages placed by Prior-lien and general-lien mortgages of the Northern Pacific 5220 5179 Foreclosure of, failure of Northern Pacific to conduct bona fide sales 5235 5214, 5231 Mineral classification fraudulent and illegal in the Northern Pacific National forest lands involved.. 5136 5180, 5269, 5226, 5274 Northern Pacific Railroad Co. and Northern Pacific Railway Co---- 5098, 5181, 5247 Northern Pacific Railroad Co. from July 2, 1864, to the reorganiza- 5182 Original subscriptions to 20,075 shares of stock by Perham and 5184 Issuance by Perham and associates of $600,000 stock apparently 5184 Perham sells out to J. Gregory Smith and associates__. 5185 Smith and associates attempt to obtain further legislation from 5185 Smith and associates sign the original interests agreements_-- 5183, 5186 The original interests reimbursed themselves for the moneys ex- 5189, 5252 5253 Jay Cooke engaged as financial agent and the 12 original interests 5253 5253 Northern Pacific Railroad Co. from July 2, 1864, to the reorganization Choate characterizes original interest plan as fraud against Page 5255 Cooke before becoming financial agent of the Northern Pacific de- Joint resolution of May 31, 1870, passed through the efforts of Cooke Resolution of May 31, 1870, which authorized the Northern Pacific (a) The applicability of the resolution of May 31, 1870 to the 5187 5190 5200 5200 5100 5190 Position of Mr. Kerr, of the Northern Pacific__ 5193 Position of Mr. Britton, of the Northern Pacific___ 5193 Position of Northern Pacific before the Supreme Court in 5194 Position of Mr. Gray, of the Northern Pacific. 5195 Position of Federal court in 1875 reorganization proceedings. Mr. Britton's statement that the 1896 sales were made in 5199 5201 Senatorial debates digested__. 5202 The 1875 reorganization of the Northern Pacific and the illegal sale 5208 The $100,000,000 of stock divided into $51,000,000 of preferred 5210 Preferred stock used to retire Jay Cooke bonds___ 5210 Preferred stock, illegal conversion into lands of grant east of 5221, 5236 Common stock traded in on share-for-share basis_. 5210 Common stock, report on, by committee of Northern Pacific, 5210 Sale by Northern Pacific to reorganize Northern Pacific, of 5211 Sham pleadings of Northern Pacific. 5212 Survey costs on land not paid---- 5212 838,852 acres immediately redeeded by Billings to reorganize 5214 838,852 acres paid for with old Northern Pacific bonds that have 5216 Total of 3,308,899.48 acres disposed of in violation of provisions 5218 Page Northern Pacific Railroad Co. from the reorganization of 1875 to the 1875 plan of reorganization contemplated that Federal plan franchise 5219 Receiver states that original Northern Pacific Railroad Co. has 5219 Reorganized Northern Pacific regarded itself as different and dis- 5219 Congress does not recognize reorganized Northern Pacific. 5220 1875 reorganization plan whereby lands of grant converted to pre- 5220 Division mortgages illegal. 5221 Redeed of 1882, when Northern Pacific as reorganized attempts to 5219, 5229 Stock of Northern Pacific as reorganized in 1875 not the stock of 5221 Right of Northern Pacific to place but one mortgage under resolution Resolution of May 31, 1870, and right of Northern Pacific to place 5222 5222, 5228 Unauthorized mortgages placed by the Northern Pacific between 5220, 5228 Resolution of May 31, 1870, requirement therein that granted Northern Pacific reorganization of 1896 and the sale of the land grant Hill reorganization of 1894 declared illegal in Pearsall case_. J. P. Morgan & Co. reorganization managers and members of syndi- 5224 5231 5231 5231 5231 5231 5231 5231 5232 General second mortgage, general third mortgage, and consolidated 5233 Prior lien bonds and general lien bonds of successor company to be 5234 Land grant acquired by successor company, the Northern Pacific 5235 Land sales in 1896 sham, as they were not intended to pass lands into 5235 Lands of grant in Dakota and Minnesota, east of the Missouri River, 5235 Reorganization plan of 1875 for conversion of preferred stock into 5236 5236 Land grant advertised for sale in 1896- 5237 Land grant purchased by Northern Pacific Railway Co. with old 5237 |