Savannah morning news. [volume] (Savannah) 1868-1887, 1886-05-18
PACIFIC RAILWAY DEBTS.
MIR. CRISP EXPLAINS THE COM
MITTEES ACTION.

Partial Anticipation and Partial Exten.
sion of the Time for Payment the Ba-
sis of the Resolution-The Govern,
ment Almost Sure TO Lose UnIess sOms
Similar Plan is Adopted.
WARRINGTON. May 17.-In the House
to-day the call of the committees for mo-
tion TO suspend the rules resting with the
Committee on Pacific Railways, MIR.
Richardson, OF Tennessee, on behalf Of
that committee, withdrew a motion made
by him on the last committee suspension
day to suspend the rules and put on its
passage the bill requiring the Northern
Pacific to pay the cost OF conveying and
surveying its land grant, and in lieu
thereof moved to suspend the rules and
adopt resolutions setting apart June 81
and for consideration of business re-
ported by that committee, Mr.. Richard-
son explained that the more impOrtane
measures that would be called up were
the joint resolution providing for an in
Vestigation OF the accounts OF the Paci-
nc railroads and the bill providing for the
funding OF the debt of those roads,
MR.. CRISP EXPLAINS.
Mr.. Crisp, OF Georgia, said that the
action of the committee in reporting the
funding bill had been grossly misrepre-
sented in some quarters for some pur-
poses, and while he knew that this was
not time to discuss the question on it's
merits, yet he took the opportunity to put
on record the substance of the Important
measure. At the present time the PacifioI
companies owed the government $l02,-
100000. but the debt would not be due
until 1898. The debt was growing at the
rate OF 100000 year, and in 1893 would
amount to $l2S, 100000. Before the gov,
ernment could be paid the cOmpanies
must pay an outstanding debt-which was
prior lien-which added TO the govern
ment debt would amount TO $4,000, 600.
VALUE OF THE PROPERTY.
The property from the best information
the committee could get could be built to-
day for one half the money. If there was
default in the payment of their fret
mortgage bonds what would be the resultF
The franchises would be sold and the gov
ernment would get literally nothing. For
many years there had been suggestions
made In regard to protecting the interests
of the government In these great corpora
tions. In 1873 the Thurman act had been
passed, but the results expected from it.
had not been realized. BY reason of the
building Of competing lines the receipts
OF the roads had fallen Off, and while
there had been an increase in the per-
centage paid into the sinking fund there
had been no great increase in the amount.
Something must be done to protect the
! government.
THE COMMITTEES INTENTION.
The committee had thought that the
| first thing to do was TO try TO benefit the
| government security. 1t had thought
| that the question was not So much a
| question Of when the government should
be paid as it was question of certainty
of payment.
He was aware that when looking 70 the
! prejudice which had been excited by the
bad practices OF the companies in the
past they were not always able to take q
business view of the question. The COM
mittee, he thought, had taken such a.
| view.
THE NEW PLAN.
II had provided that this debt, which
would be due in 1898, should be divided
into l40 parts, two of which should be
| paid each wear. beginning Immediately.
This was twelve years before the governs
ment would receive anything under toe
existing law. Under this plan. instead %
waiting twelve years before receiving a
| dollar, the government would begin at
once receiving $3,500,C00. Before 1898
| the government would have received
about $41, ,000,000 The bill provided
| for partial extension and partial,
anticipation OF the debt. II the c0mpanie q,
refused to accept the provisions OF tbel
act, the Thurman act would be 80 amend-i
! ed so as to increase from 20 per cent. TO 40i
per cent. the amount required TO be paid
| into the sinking fund. motion 10 sus-
\ pend the rules and adopt the resolutions
| waa agrppd To WithOuT diviafou