The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-07-15

WASHINGTON, July 14.-By a meeting
which lasted all day the House Committee
on Pacific Railroads was able to finally
finish the problem which has engaged it
throughout the session and to reach a
practical agreement on plan for settle
ment of the debts of the Central and
Union Pacific companies.
The bill which will be reported TO the
House will be in its main features the one
introduced by Chairman Reilly. with some
important amendments for the second
draft of it.
The time for the settlement of the debt
to the Government is fixed at fifty years,
semi-annual payments in liquidation of it
TO be made. Interest is to be at the rate
of per cent per annum. The principal
amendments adopted to-day were in the
direction of making ron-clad the Govern
ment's hold upon the property and insuring
it from losing any of its rights by the new
arrangements, also in Obliterating the pro-
visions for purchasing committee in case
the property should change hands. the
committee not deeming it best to antci-
pate such contingency.
According to the plan the first mort
gage bonds, amounting to S65. 900. 900, will
be paid as they mature, cleaning the pIoU-
erty of debts on which it is paying per
cent. The sinking fund, now amounting to
S1S,00O,OOO will be devoted to paying the
first mortgage. The Government lien,
which will become the first lien under the
plan, will draw interest at per cent, the
principal being paid in graduated semi
annual payments through a period Of fifty
years.
Propositions were made during the dis
cussion TO have this period reduced to
forty years, but it was concluded that at
the present condition of the roads they
could not be expected to meet such re-
eurements. The period of fifty years is a re-
duction of One-haIf the time originally pro-
posed in the bill. A member of the CON-
mittes made stand for the Government
ownership, takiog the position held by
the California members of Congress,
Mcguire and Geary. His views did
not gain the support which they
might have if it had seemed
clear that the railroads would become
paying property in the hands OF the Gov
eminent. Even had that been the pros
pect most of the committee expressed
themselves as opposed to give the owner
ship on general principles. Under the bill,
however, the Government will foreclose if
the corporations fail to meet their pay
ments.
The amended bill will be printed and
submitted to the committee early in the
week, when formal vote will be taken.
The Senate committee of which Senator
Brice is chairman has held no meetings
lately. and is understood to be waiting for
the House committee to take the initia-
tive and frame a bill which can pass.
The refunding bill question was brought
up in the House on a motion made
that no bill of the kind be reported
at this session. This motion was defeated
By vote of 9 to 5. Those voting in the
affirmative were Boatner of Louisiana,
Weadeck of Michigan, Harris of Kansas,
Snodgrass of Tennessee and Cooper of
Wisconsin.
Mr.. Boatner said to a CALL CORE
sponGent that the action of the committee
to-day was tanlamount to an agreement to
report Rsilly's bill extending the debt for
a further period of fifty years at three per
cent interest. Mr.. Boatner said that he
could not support such measure and be
did not believe it would go through this
session. or in fact at next session, or any
Democratic Congress. He said there
promised to be a big row when the bill
comes up in the House. Mr.. Boatner says
if it passes, which is altogether improbable,
the Government will have no recourse
against the stockholders. He prefers
Hunt!ngton's scheme to borrow money on
the Governments credit TO Reilly's bill,