Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-03-15
THE DAYS WORK
IN THE TWO HOUSES OF CONGRESS-.
Gordon Offers the Bismarck g. Black Hills
Railroad Bill-MatthewsT Talking for Jay
Gould's Pacific Kailroads-The House, by
Close Vote, Allows Whisky to be Held
in Bond for Three Years.
Senate.

WASHINGTON, March IA number Of PEN
sion bills passed during the morning hour,
among them one granting $50 a month to the
widow of Rear Admiral Wilkes.
Senator Voorhees, introduced bill for the
debts due the United States, in legal tender
notes at par except in where it is other
wise expressly stipulated on the face of the OBJ
legation or contract. Referred.
Senator Teller introduced bill to regulate
passenger fares and freight traffic on the Den
yer Pacific and Kansas Pacific railroads. Re-
ferred.
Consideration was then resumed of the un-
finished business, being the bill in regard to the
Pacific railroad sinking fund, aud Senator
Matthews spoke in favor of the bill reported
by the committee on railroads, and gave notice
that he would hereafter submit a substitute
for that reported by the Judiciary committee.
Senator Matthews explained the bill reported
by the committee on railroads, and said the bill
of the railroad committee did not embody the
proposition which had been urged by the rail-
road companies. 1t was based as all legisla-
ton on this subject ought to be based, on the
consent of the parties. Without consent, it
was his deliberate conviction that Congress
had no authority of law-that the government
performance of which would violate an existing
contract between the parties. He argued,
that the government, by exercise of it's SOW
ereign power, could so bind itself that it could
not loose itself. Referring to the differences
between the bill of the committee on railroads
and that of the judiciary committee, he said
that one proposed to alter contract by a con-
tract, and the other was an act of power and
nothing else. One settlement, which was
complete and final and put an end to contro
versy and litigation. 1t contemplated no fur
Their necessity for legislation; whereas the bill
reported by his distinguished colleague Thur
MANI from the Judiciary committee, did not
even pretend to be a full and final settlement.
He (Matthews) believed that if the bill of the
Judiciary committee should become a law it
would be the most deliberate attack upon the
rights of property and contract that he knew
of in the annals of legislation The bill of
the railroad committee allowed interest on the
accumulation of the sinking fund at the rate
OF per cent. per annum, while that Of the
Judiciary committee allowed 5 per cent. If
the companies should he allowed to make in
vestments under their own control towards the
payment of the debt they would certainly make
their money earn SIX per cent. interest He
argued that the bill of the judiciary committee
instead Of collecting sinking fund for the
sole and exclusive use of the government Of
the United States, in order to extinguish the
claim of the United States against those COM
panies, it carefully collected u sinking fund in
respect to which the United States would have
no lien whatever, except subject to the prior
lien of the first mortgage bondholdcrs Of the
real. The amount of money required for the
sinking fund must be paid by
passengers and those doing business
over the roads. 1t was tax levied
by Congress upon the commerce of the country
transported over these roads. Suppose the tax
be made burdensome, the companies must in
crease their charges Would that be good pol
icy? Would it be for the good of the public
or the benefit Of the government? He then
spoke of the legal questions involved, arguing
that the bill Of the judiciary committee was an
invasion of the right of property and contract.
He quoted from many legal authorities in sup
port of his views. The bill of the Judiciary
committee declared what the net earnings of
railroads should be. Congress had no more
right to declare what should be net earnings
than it had to contiscate them all.
Pending discussion, Senator Gordon by re-
quest introduced u bill to authorize the con-
struction of narrow gauge railroad from
Bismarck to the Black Hills. Referred.
The consular and diplomatic appropriation
bill was then received from the House of Rep
resentatives and referred to the committee on
appropriations.
The Vice President announced his signature
to tho House bill for relief Of VIM. A. Ham
mond, late surgeon-general of the army, and II
now goes to the President for his signature.
Senator Christiancy took the floor to SPEAK
on Monday on the sinking fund bill, and thu
Senate ad journed until that day.