The morning news. [volume] (Savannah, Ga.) 1887-1900, 1888-08-01
UNION PACIFICS DEBT.
THE PASSAGE OF THE CULTIVATE
BILL RECOMMENDED

Mr. Frye Presents the Report of the
Select Committee of the Senate on
the Subject-The Only Possible Way
Out of the Financial Morass.
WASHINGTON, July BIN the senate to-
day, Mr.. Frye. from the select committee
on the Pacific railroads, reported the Union
Pacific funding bill. providing for settle
mont of claims growing out of the issue OF
bonds and to secure the payment of all the
Indebtedness. He said the bill was the
Cultivate bill as reported to the house,
containing many amendments over the bill
ms it came from the commission originally.
The senate report is signed by all the mem
bers of the committee, the senator from
Minnesota (Mr. Davis, who was absent,
having by telegram authorized the chair
man to sign his name to tho report.
CONFINED TO THE UNION PACIFIC.
The bill relates only to the Union Pacific
and Central branch, having nothing what
ever to do with the Central Pacific. The
committee found much greater difficulty in
formulating an adjustment and settlement
vNth the Central Pacific than with the
Union Pacific, and is not prepared, at the
present time, to make any REL ort touching
may be necessary to amend the bill when it
is under consideration. 1t provides for
finding the present worth of the debt of the
United States against this corporation,
land" said Mr.. Frye, 81 desire that the
statement Of the process (which have here
and will read may be printed in the
RecOrd."
Mr.. Frye read the paper referred to, and
said the actuaries of the Now York life
insurance company had been requested to
present a statement, and that it was posi-
bic that when received, the committee
might want to offer it as an amendment to
the bill. The bill was placed on the calen-
dar, and the report was ordered printed
The report is signed by all seven members
of the committee.
WHAT THE REPORT SAYS.
After review of the familiar history of
the Pacific railroads, both in and out of
congress, and sketching the principal fea-
lures of the bill. the report says;
Without fully Analysing all its provisions in
this report your committee think that the bill
fully protects the interests of the United States
If this settlement is adopted the following ad-
vantageS are secured:
/. All controversies between the United States
and the companies, such as have occurred under
the existing laws, are terminated.
of the sinking fund are ended as
the United States at once receives this large
sum on account of the subsidy debt and is re-
lieved from all trust obligation to the company.
WHAT THE GOVERNMENT WILL GET.
3. The United States will receive before the
debt natures, in addition to the sinking fund,
which at the valuation of Nov. l, 1897, was
s., T34, 0S3, not less than 81, G47 800, making a
total payment of principal before maturity of
$40 3Sl 5S3 and will also receive interest on the
entire debt every six months the total payment
OF interest during the same period amounting
to $l2 ,255,761.
M, n N lar,
amount of additional security, which insures
ultimate payment of the whole debt.
VALUE OF THE SECURITY
The value of this additional security, the
report says, probably lies somewhere between
so 900 900 the valuation placed upon it by the
S3j, 900, 009 estimate placed upon the additional
security by Mr. Anderson, one of
the Pacific railroad commissioners. But
your committee have not con-
sidered 1t necessary to decide which is the
more nearly correct, as in any event the United
States will receive q hen on everything that the
can be had,
MORTGAGE ON EVERYTHING.
The United States will have n mortgage on
the whole system, with all its equipment and
property. and there will be no alternative here
after for stockholders between the pay
ment of the subsidy debt and
the loss of their entire property. AS to the
redress for the wrongs done the corporation
and United States, the report says the commit
tee are satisfied that the bill reported affords
the only possible remedy, and that by de-
oiSion of the supreme court it is clear that the
United States cannot institute proceedings in
its own name to recover what the company has
lost and that the company alone can bring the
necessary suits
THE ONLY COURSE.
The bill therefore adopts the only possible
course when it compes the company as CON
dition of settlement to allow use of its name
and directs the attorney general to bring what
ever suits he may think proper to recover any
thing that belongs to it. He has control of the
the suits and the government is to receive as
payment on account whatever may be recov
cred. In this way alone can the legal obstacle
to the proceedings be removed, and while your
committee do not undertake to say that these
suits can be prosecuted successfully, they are
satisfied that congress can go no further than
to direct the commencement of legal proceed
ings, AZ is done in this bill
In conclusion the committee says:
Believing, therefore, that the bill secures the
payment of debts due from the companies to
which il relates, and that it makes all the pro-
vision possible for the punishment of those who
are charged with having illegally enriched
themselves at the expense of those companies,
4. a