Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-06-20
Difficulty in Securing Settlement Of
the Pacific Railroads Debts.
SUGGESTIONS LOOKING TO SOLUTIONS
The Subject Will Be Shortly Taken
Up in Earnest.
OPINIONS OF SENATOR BRICE

Few more intricate and difficult problems
have ever confronted Congress than the
settlement of financial relations between
the government and Pacific railroads, which
has engaged the attention OF the COM
mittees Of the House and Senate this ses-
sion. Two propositions have been advanced
and more less digested; the principal
one funding plan by which the status
pt the. Pacific debts are readjusted. the
Epyerngnept assuming all the bonded in
Inr11 of the companies and requiring
yments extending over q time
varying in the different bills from fifty to
one hundred and twenty-five years; the
secondary plan contemplates proceedings in
the courts against the individual stock
holders or their estates under the Califor-
MIA law. which makes them individually
responsible for the debts OF the road.
On the other hand is proposed a resort to
foreclosure proceedings. under the terms Of
the charters. by which the government
would secure control of the property. and
either sell or manage II after the first mort
gage had been satisfied.
For the first plan the chairman of the
House committee. Representative Reilly of
Pennsylvania, stands sponsor; Represen-
tatives Boatner of Louisiana and Clark of
Missouri have introduced propositions en-
bodying the second. while the California
members. Geary and Mcguire, have favor
Ell the last. also advocating that the Hop
kins. Stanford and Crocker estates and
Pr esident c. p Huntington of the Central
Pacific should be held responsible for their
handling Of the government subsidies SO far
as Is practicable.
Objections That Are Urged.
One objection to the funding plan which
some members consider fatal is that the
charter Of the Central Pacific expires with
In twenty years. They hold that the gov
with a corporation for a longer term of
years than the life Of the body, SO that
even the ffty-year funding plan would be
impossible. according to their view. Mr..
Huntington has held out the representa-
ton that his company would be able TO
meet its obligations of interest and semi
annual payments upon the principal but
the opponents of this plan argue that II
gives the government no greater assurance
OF recovering Its claims. while IL bars II
from resorting to any summary methods
Of foreclosing for its debt although the
funding bills do contain a clause authoriz-
ing the government to take possession
when there is a default In payment.
AS for the proceedings against stock
holders Under the California law. some un-
certainties in regard to the applica ton OF
that law have been suggested, while the
fact that the Hopkins and Crocker estates
have been distributed presents complica-
tions, not taking into consideration the
ment funds of the Stanford University q
Although the funding plan has in the
diutae. Agyhmittee beeh narrowed to a fifty
yAaf asrH. and the per cent rate of in
tefest been decided upon, the success of
that plan is by means assured. SIX
members Of the House committee of fifteen
are known TO be opposed to any funding
scheme. while others are uncertain. Alto
gether, the prospects for any solution OF
the Pacific railroad question by this Con-
gress are not considered particularly bright.
All ON Account of the Tariff.
Senator Brice, chairman of the Senate
committee on Pacific roads. says that the
tariff bill has prevented the consideration
OF the Pacific railroad funding bills that
have been presented to that committee
There Is a disposition in both Senate and
House, said Senator Brice ito pass some
Kind OF p funding bill. In the House there
Nave been hearings with an effort to get
at the facts. The trouble now is that no
one can realize the way in which the earn
l'ings OF the Union Pacific have been de-
creased, and the destruction that is still
going on. A funding bill must be made on
basis of the business Of the road,
1t Is quite likely that II will be necessary
for the committees Of Congress 70 20 over
the roads and the books OF the company
In order to get at all the facts. Owing to
the time taken by the tariff bill and the
way In which the appropriation bills will
crowd the business of the Senate, and the
general desire to get through the pressing
business, 1t Is possible that the considera-
ton Of the Pacific funding bill cannot be
reached,, during this session. The desire
seems TO be to get a bill that will secure
the government lien and / think that is
impossible. / won't say that II will extend
the time one hundred years, or even sew
enty live years. but some adjustment will
be made"