Evening star. [volume] (Washington, D.C.) 1854-1972, 1888-03-03

Hearing ~ he senate Specta1 Oo0-
miseee-Ths Affairs - Ne Un1o0
Pacific Road Under OOmnlAoens1oo.
An Explanasion ~ Coninfssaoaer
AmdcrsOn, Etc.
The senate special committee 70 which was re-
ferred the reports Of the Pacific Railroad CoGamis-
sion gave further hearing to-day on that branch
Of the subject relating to the aairS OF the Union
Pacific Co. There were present Commissioners
Anderson and Little, Railroad Commissioner
Johnston, Mr.. storey, attorney for the Union
Pacific and MI. Hayward. attorney for the Gen.
trail Pacific.
COMMISSIONER ANDERSON IxPLArNs.
Mr. Anderson addressed the committee explain
Ing substantially, - he had previously explained
missions bill Al the outset &c was led BY inQares
Of the Csntsai Paciac. Briefly. he ssid. tnis com
pany instead OF devoung It's earnings to dividends
had invested them In collateral enterprises
subsequently It had declared dividends apparently
within the letter Of the law because iss account o.
when In fact, the money had bsen ex:
pended The property 20 purchased had
dividends had been borrowed or obtained from
any source available. II was to prevent transac-
tons OF this kind In the future that the COMMITS
10 LIMIT TEE POWER 10 DECLARE D1vDNDs
to the amount OF net earnings Of the preceding
year, holding that the Intervening time was In
sufficient to materially endanger the value Of any
property purchased, while as guard against frauo
there was the provision requiring the assent Of the
President OF the United States to any investment
OF this kind.
During the Commissioners explanation Of the
nature OF me security now possessed 6y the GOV:
given by the company under the provisions Of
either the Commissions or the Cultivate bin.
1 senator Morgan asked II he (AndersOn) was pre-.
pared as lawyer to assert that
THE GOVERNMENT Has NO RIaHr
to declare "a statutory lien now Tor the further
security OF the bonds upon property that may be
possessed by the company.
To this Mr.. Anderson replied that he was pre-.
pared TO make that assertion; that while the
United states might require the company to DC
anything In reason 1t could not extend its Hen ovei
one Inch OF property that was not authorized BY
the statutory parties.
Later, during the hearing, Senator Morgan read
the following, which he mad in the meantime
| written out covering his view OF the point thus
a remedy BY legal or equitable attachment zen;
according to the nature OF the property TO bt
Gsglsterred 70 70, simple contract creditor whose
also be prescribed In the statute according u
the judgment OF the, legislature In This
case the necessity Of doing this BY general Law
reservation OF the power to alter or amend
the statute suppose that reservation
for the security OF the mortgaged estate as to any
other possible need for legislative interference AND
that under its provisions congress could give sucf
| remedy against the consolidated company.
MI. Anderson cOntended that II the question
thus raised shall come up at all, 1t will come moi
as against the Union Pac1nc, which now Oners
ample security tor the debt, but against the Cen
trail Pacific.
To this Mr.. Hayward. for the Central Pacinc, re-
Joined that the reputation and integrity Of ths
Central Pacific directors having been aSSailed
they would assent to no bill which should propose
They would assent to any bill which provides for
fair Investigation or all these facts by the courts
and would waive all questions OF the statute o.
limitations