The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-04-20
PACIFIC ROADS.
The Chances of the Funding Bill
Getting Through At This Session %
the Congress.
Mr.. Cultivate Very Hopeful of Ac-
complishing It Soon.
This 10 One ofthe Measures That Suf-
fered in the Deadlock.
The Bill viii Be Strenuousiy Opposed
By Mr. Anderson and MIR. Weav-
er, of Iowa--What the
Former Says.

WASHINGTON, April 10 The New York
Herald says Chairman 0uthwaite, OF the
Pacific railroad committee. is still hopeful
of getting the Union Pacific funding bill
through at this session. The committee
on rules will probably make new assigns
ments for the committees which lost their
days by the deadlock, aud the Pacific
railroad committee was among these.
Mr.. Cultivate thinks il might be- possi-
bic to call the bill up under suspension Of
the rules, hut he would prefer not to do
this, because II would not allow sufficient
opportunity for debate.
The hill will be strenuously opposed by
Mai Anderson and Gen. Weaver of
Of Iowa. The purpose ui the bill
is defined by the title 10 he TO
direct the Attorney General OF tho
United States 10 commence judicial pro-
cccdings against the Union Pacific Rail-
way company and other parties and for
other purposes" The preamble rccitcs
that the Union Pacific company, through
its management, officers aud boards Of
directors, has for years pcisistcntly and
constantly refused 10 comply with the acts
OF Congress OF July /, 1852; July ., 1854;
March 3, 1879, and May :, 1873; that tho
! officers have squandorcd large sums out Of
tho gross earnings in Improbable enter
prlses and the payment OF subsidies for
| hidden by those acts ol Congress; have
| divided among themselves. in violation III
| law, hundreds of millions oi dollars, have
imudulcntly increased the Indebtedness Of
| the road; and have levied excessive
charges upon the people tributary 10 said
lines TO pay interest and dividends on this
fictitious aud fraudulent Indebtedness.
The bill directs the Attorncy-Gcncral 10
! forthwith institute proper proceedings in
the courts OF the United States, either in
law or equity, 10 enforce the iorfciturcs
provided for IN the act Of 1873, and 10 coli
lcct the moneys due Ia the United States
! from the Union Pacific Railroad company,
or that may be due from amy OF the officers
or stockholders. The second section liz
reefs the Atiorney-tiencnd In institute a.
tons against the Union Pacific and Kansas
Pacific Tor the recovery OF the proccc,ls Of
| the wrongful issue ol stock land urant ana
| income bonds, amounting 10 Si5, ,Oo,oou,
including among others ~ parties defend.
: ant IN such actions John II. Alley, Elisha
Atkins, Ezra II. Baker and Sidney Dillon.
To recover damages accruing out Of frauds
arising from the nisapplicniion of earn
inT, actions are directed Ia be brought
against the Corair, Fred l.. Ames. Russell
Sage and Others. One section provides for
| investigation Of the wrongful morlglging
OF branches, another section that claims
shall be exempt from the operation Of the
statute Of limitations, and the last section
directs the Acknowledgement 10 make appli-
cation 10 the United States courts for tho
appointment OF receiver. Thcbil works
out IN detail Commissioner Paitcnon's
recommendation that the roads be- for
fcilcd TO the government
In regard 10 his bill Maj Anderson said
today.
at applies 10 these roads that remedy
for existing evils In general railway practice
which ~ proposed by Mr. Iiudson's book
ON the Railways Of the Republic Tho
bill Is drawn with the purpose OF providing
feasible method for operating Pacific
road after lis acquisition 10y foreclosure Of
the government mortgage. method
which shall ut once Weld the United
States an assured income ON lis invest
ment, and also secure the people against
the abuses Of determinations, pool and
| monopolics which prevail At present. For
this purpose II cnacts that the government
shall purchase the hui mortgage bonds
with the surplus In the treasury, for tho
protection Of Us own second mortgage, and
after forcclosing the latter, that tile road
shall be operated M public highway and
be- open 30 any carrier Of freight upon
the payment Of uniform aud regulated
tolls for the uao of 10 tracks. All such
transportation n subjected 10 strict rrgula-
tions for the control Of trims IN motion,
for the inspection Of rolling stock, uud for
the efficiency and care OF train men tho
theory being that n superintendent acting
for tile directors controlling government
road can manage the transit oi irins just
~ well ~ II lac were employed by tho
directors Of q railroad company.
"rhe work u placed in chargcoi board
OF directors, which shall 10 entirely re-
moved from political influence In being
elected by the votes OF the persons trans
porting freight over the road aud ol those
shipping or receiving freight, With ono
vote for every $1,000 paid In tolls or
freight charges.
"1ho element oi free competition thus
secured In the freight traffic Is sought TO
be- obtained in the passenger service, by
providing for periodical lettings OF tho
privilege 81 running passenger trains, ac-
cOrding 90 u schedule 10 be fixed by tho
board, the bidder binding himself 10 pay
tho stipulated sum- and 10 perform tho
service at the lowest rate Of fare per pas
senger per mile, and ut the expiration OF
the term the privilege will be again sub
jcct TO competition aud let 10 the lowest
bidder on fares. In case OF failure TO per-
form the service with due diligence, AZ
contracted, the privilege Il forfeited and
the contractor il liable for the damages.
Passes are prohibited, but commulation
and excursion tickets are allowed.
'rhe practical application Of the bill has
the advantage in the ease OF the Pacific
railroads, that while they are largely over
| ranialixpd the government can nut lis in-