Morning journal and courier., 1888-08-01
Congress--First Session.
wAsHrneror, July 81.

1 w ASA1HGIOHs Ju4y O4s
SENArK--Ths report presented to the Sen
| ate to-day by Senator Frye from the selec
committee on Pacific railroads recommending
the passage of the Cultivate Union Paci6
railroad funding bill, without amendment
| is signed by all seven members of the com
mtttee. After review of the familiar his
tory of the Pacific railroads both in and on
of Congress, the report somewhat curtailed il
as follows: The committee in the course o.
their Investigations, early became satisfied
that the financial ability of the different Pa
cifc railroad companies and their attitude to
wards the government were so entirely differ
emit that no plan of settlement could properly
be made applicable to all, and in this report
they deal only with the Union Pacific rail
way and the Central branch, Union Pacific,
who are better able and more willing than
the other companies to make an imme-
diate adjustment of their Indebtedness.
1t Is clear that the provision made by exist
ing law for the extinguishment of the debt
is entirely inadequate and that on July 1,
1897, which is the average date of maturity
of the subsidy bonds, the United States will
hold claim against these corporations which
1t will be utterly impossible for them to pay.
The governments security for this debt con-
sist of second lien on all the property, roll
ing stock, etc., in consideration of which the
subsidy bonds were issued, but the unsubsi-
died portion of the road il free from
1ivered by the United States Supreme court.
The United States therefore is a creditor,
having large debt which will not mature
for nine years and which Is very inadequate-
ly secured. 1t is clear that the debtor cam
not pay when the debt becomes due and that
the only possible way in which it can pay ID
by instalIments.
In the judgment of your committee the
Cultivate bill secures very satisfactory
settlement of the debt due from the Union
Pacific and Central branch. Union Pacific
companies and the committee have every as
surance that both corporations will accept its
terms Il fxes the amount of money, which,
if put at interest on July i, 1888, at 8 per
cent. per annum, simple interest, would equal
the entire sum due from the corporation
when the debt natures, after making proper
allowances for the payment already made. II
this settlement is adopted the following adj
vantsges are secured:
First. All controversies between the
United States aud the companies, such as
have occurred under existing laws, are termi-
mated.
Second. All questions as to the invest
ment of the sinking fund are ended, as the
United States at once received this large sum
on account of the subsidy debt, and is re-
isved from all trust obligations to the COM
pany.
Third. The United States will receive be-
fore the debt natures, in addition to the
sinking fund which at the valuation of
November 1, 1887, was 50, 734 1888, not less
than 50, 647, 500, making total payment of
principal before maturity of $40, S81 ,585, and
will also receive interest on the entire debt
every six moths, the total payment of inter
est during the same period amounting to
$12, 235, 767.
Fourth. The United States will receive a
very large amount of additional security
which insures the Ultimate payment of the
whole debt.
The report says in conclusion: Believing
therefore that the bill secures ths pay ment of
the debts due from the companies to which
it relates and that it makes all the provision
possible for the punishment of those who are
charged with having illegally enriched them
Eelves at the expense of those companies, the
committee recommends its adoption by the
Senate.
The resolution offere1 by Mr.. Hoar on the
oath inst. was taken up ead agreed to- 1t
provides for the appointment of a committee
of seven Senators to repoIs upon the relations
of commerce and business ex sting between
the United State5 end the British North
American Possessions.
The sundIy civil bill! was then taken up.
severel amendments were proposed, among
them one by Mr.. CAL approp1iatiHg SIC, 900
to be expended at the discretion of the Score
tary of the Treasury for the recovery of prop
cry of the United States now held in adverse
possession to the government. He Sc oke of
the information recently lid before the Sen
ate on the subject.
Mr. Sherme1 oppose the amendment and
Sc oke of the hope of recovery of property
which hal belonged to the Confederate States
as an Elusive one. The debts of those States
were lien upon their properly. The propo-
sition Wet simply to give some gentlemen a
pleasant Up - Europe. The recovery of
Confederate property by the United States
goye1 lment might be attended with RESPONSE
bility for their debts.
Mr.. Evarts ESQ arg Ied against the amend
ment on like grounds. He said several years
ago he had been consulted and had adv ised
against such an attempt and had declined to
have anything Whatever to do with it.
Mr.. Edmunds-Of course they can be all
accounted for because they all belonged to
the British navy at that time. They were
just as much part of the British navy then
as they are now.
At this point Senators Cockrel and Blair
engaged in little mutuel repartee, occasion
ed by the use of the words Confederate
States by the fol .ner.
The bill then went over until to-mo1 % "
and without action on Mr.. Calls amendment
and the Senate adjourned.
HoUsE.-Ine Houes met at noon 30 day,
and in the absence of the Speaker Mr.. Me-
MILAN, of Tennessee, wes chosen Speaker
pro tenn. M. MiIls, Of Texas, esked unani-
nous corsent that the It'll of Aus lst be as.
sisaed for the ooro.deration of bills reported
from the comm ,ttcs on lat or with the excep-
ton of the conv ct LAX Or bill. On motion of
Towrshend, of Illinois, the further consider
alton of the deficiency BIZ Wet ostr oned for
the present and the Houes went into COM
mittee of the whole on the Amy appropIia-
ton bill with Senats amendments. All the
amendments were non eoncuIfed in with the
exception of those relative to fol sfcatiors
and ordnance. A spirited discussion fol-
lowed, ssyera! speakers holding that the SEN
ate amendments relative to Notifications
were not germans 10 the bill and were a
usurpstion of the rights of the House, while
others took the opposite view. Pending
action the committee rose, and the House at
8 O'Clock adjourned.