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confine the future investments to just mortgage bonds of railways in the United States, or to bonds issued by this company.
Reasons.
I consider the loan to the Pacific Improvement Co. illegal: all the sinking fund clauses in the various mortgages refer to investments, not loans: moreover a loan to the P.I.Co. is virtually a loan by the majority of the directors to themselves, and on that account alone both illegal and imprudent. The P.I.Co. is not in any sense a required public company but merely a private partnership under corporate form: the money might just as well be lent to Crocker & Co. or Huntington, Hopkins & Co.

I brought this matter forward a year ago and the greater part of the loan is still outstanding: I therefore bring it forward again so that the responsibility may be on those directors who vote for the continuance of the loan.