Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1894-05-31
AFTER THE PACIFIC ROAttS.
Evidence That Congress Is Determined
to Force Them to a Settlement.

Congress, for the first time in III ny
years, Is showing a determinatia. to
force the Central and Union Pa.ifia
railways to settlement of the in
debtedneSS to the government. Several
efforts have been made in the paSt to
secure this result, but they were rem
orally abOrtive. The companies have
claimed all along that their financial
condition was such and their tils2. ial
obligations We're so heavy that they
could pay only the interest on their
first mortgage bonds, hut were unable
TO liQuidate their Indebtedness ~ he
government, either upon the prinn!pal
or the interest of their bonds. The
present Indebtedness of the companies
is given by the Washington Post as
about S54,000,000, exclusive of the in
terest, which SwellS the amount to-
more than $100,00O,000 Three separ-
ate propositions are now being consid-
cred looking to the collection of the
moneys. lnaSmuch as the bonds is
sued by the government commence to
mature next year and will continue
maturing for a period of four years
subsequently, it is felt that some
understanding should be reached look
ing to a settlement. Two of the three
bills are now before the house COM
mittee on Pacific railways. One of
these measures was introduced in Sep
TENDER last by Mr.. Geary, of CalifOr-
MIA, the other by Mr. Brown, of In
DIANA on the first day of the session.
The third proposition is that of Mr.
Boatner, of Louisiana, which takes the
form of a resolution, and which Mr.
Boatner has had referred to the COM
mittee on judiciary, of which he is a
member. The Geary bill provides for
the foreclosure of a governments
mortgage on the two roads. 1t re-
quires the United States treasurer.
upon the maturity of the first INSTALL
ment of the bonded debt, to demand
its payment, together with the total
amount of interest due upon such in
stallment. Similar demands shall be
made as the successive inStalTments
mature.
If either of the railroads fails to
comply with the demand all the rights,
privileges, grants and franchises de
rived by them from the United States
shall be forfeited and become the pro-
perty of the United States If either
of the companies defaults the attorney
general of the United States is di-
rected to institute action in the United
States courts to secure legal adjudi-
cation of the forfeiture and prosecute
it to judgment as speedily as possible.
At the same time the attorney general
shall apply for a receiver to take
charge of the properties during the
continuation of the litigation. The bill
further provides that the secretary of
thn treasnry shall prepare United
Staes bonds corresponding in amoztnt
and number to the present first mort
gage bonds of the companies, which
shall be made payable within twenty
five years and bear interest at the rate
Of per cent per annum, payable
Semi-annually. The holders of the
first mortgage bonds may exchange
them for a number equal in amount to
the last-named bonds, and such accept
ance shall be payment of their first
lllOI tSdSC JULIUS. AlJcI Tic u
the decree of forfeiture the president
of the United States shall appoint a
commission of seven persons, and the
earnings of the roads shall be applied
as rapidly as possible to the eXtin-
guishment Of their debts.
The Brown bill provides for the re-
funding of the company's indebted
ness, the principal and interest to be
paid in equal proportions semi-annu-
ally for 100 years, until, at the eXpira
ton of that time, the entire indebted
ness shall have been liquidated. The
interest for the first ten years shall
be 1 per cent. per annum and per
cent. thereafter.
Nature itself suggests the reality OF
a ,.ac11s.roctipn Tho Wi tar. and